Tokeny, DLA Piper Partner To Provide Blockchain Compliance Solutions
Tokenization platform Tokeny is partnering with global law firm DLA Piper to provide an approach to capital raising, which enables companies to raise funding in a regulatory compliant manner from their own website.
Based in Luxembourg, Tokeny is FinTech company that aims to deliver an institutional grade, secure end-to-end platform that allows for the issuance and servicing management of tokenized securities. The firm is leveraging blockchain technology, coupled with decades of experience from the traditional securities world, to make the participation of any contributor in a security token offering transparent, accessible, and completely secure. It recently launched InvestorID, a market-driven decentralized application allowing investors to generate their on-chain identity to access and trade compliant tokenized securities.
Formed in January 2005, DLA Piper is a multinational law firm located in more than 40 countries throughout the Americas, Asia Pacific, Europe, Africa, and the Middle East. It is regarded as one of the largest and most prestigious law firms in the world, in terms of revenue and lawyers. The firm is one of the first members of the Hedera Hashgraph Governing Council, a group which guides changes to the software run by Hedera distributed nodes over time.
The two companies recently created the Digital Securities Alliance (DSA), a solution to businesses that are looking to raise capital at an early stage and at a relatively low cost. DSA will reportedly allow issuers to raise money through their own website and gives access to investors to wider investment opportunities. It also enables businesses to digitalize their existing capital structure to benefit from efficiencies of a blockchain enabled platform.
“This offering brings together the use of advanced blockchain technology with DLA Piper’s global network of offices to provide low cost solutions for small and large cap businesses that wish to raise capital, or tokenize traditional equity or debt capital whilst complying with global securities regulations,” said DLA Piper. “The alliance covers the regulatory framework and the relevant Know Your Customer and anti-money laundering requirements for securities in various jurisdictions.”
Martin Bartlam, DLA Piper’s international group head of Finance & Projects and international co-head of the Blockchain and Digital Assets practice, said that technology is now providing tremendous opportunities for law firms to improve the way they offer professional services to clients.
“This is increasingly relevant in providing cost efficient cross-border solutions to small and large cap businesses looking to access capital to develop their business offering,” Bartlam said. “Working with a technology provider to structure a compliant legal offering is a great way to open up capital markets and enable businesses to access capital in a low cost and efficient way.”
Tokeny CEO Luc Falempin said that by establishing this unique relationship with one of the world’s leading law firms, they are creating the right infrastructure and opening up a tremendous opportunity for institutional involvement.
“Institutions can finally invest in digital assets knowing the offering gives effect to and is compliant with the necessary regulations,” Falempin said. “The Digital Securities Alliance resembles this best of both worlds approach, as it is one thing to know what laws to respect but it’s another actually enforcing those rules on the blockchain. There is a growing awareness amongst traditional financial players that blockchain technology will transform the infrastructure in capital markets. Of course, those that come from a distributed ledger technology background have believed this for a long time, but we’re now seeing traditional players sharing the same opinion. This partnership is a manifestation of that shared belief.”
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