Euronext Invests in Tokenization Platform Tokeny Solutions

European stock exchange Euronext on Monday announced that it has invested €5 million (around $5.6 million) in Tokeny Solutions by subscribing the entire capital increase pool of the company.

With this investment, the European exchange got control over 23.5 percent of the Tokenization Tokenization Tokenization represents the process of substituting a sensitive data element with a non-sensitive equivalent, i.e. token, which bears no extrinsic or exploitable meaning or value. In essence, the rights to the ownership of an asset are converted into a digital token. Tokenization can be used to own an entire unit of an asset. For example, one token that represents the ownership of a piece of real estate or to split ownership of a single unity of an asset such as 200,000 tokens, each one represen Tokenization represents the process of substituting a sensitive data element with a non-sensitive equivalent, i.e. token, which bears no extrinsic or exploitable meaning or value. In essence, the rights to the ownership of an asset are converted into a digital token. Tokenization can be used to own an entire unit of an asset. For example, one token that represents the ownership of a piece of real estate or to split ownership of a single unity of an asset such as 200,000 tokens, each one represen Read this Term platform along with “strong governance representation.”

Convinced of the long term impact of #tokenization on the financial industry, Euronext invests in @TokenySolutions - the compliant tokenization platform. We have subscribed the entire €5 million capital increase of Tokeny, resulting in a 23.5% stake ➡️ https://t.co/91k5z5BbLa pic.twitter.com/5gPMgLW8ZX

— Euronext (@euronext) July 1, 2019

Tokeny Solutions was launched in 2017 and provides private markets securities issuers - from mid-cap companies and asset management companies to advisors like investment banks - with modular and user-friendly end-to-end solutions to issue, manage, and transfer tokenized securities on a public Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term.

The trend of tokenization

Tokenization of assets is gaining popularity in the financial industry. It is the process of digitizing financial assets, including equities, debt-like instruments, funds, and streamlines administration. The records of the transactions are kept on a blockchain to ensure safety.

Many major players are also jumping into the sector to gain profits. Goldman Sachs CEO recently agreed to the advantages of tokenization of investment instruments and stablecoins. He also hinted that the bank might follow the steps of JP Morgan Chase to bring a native digital currency.

Earlier this year, Finance Magnates reported that Securitize, a San Fransisco-based startup, launched a platform to ease the process of tokenization securities and assets.

Many personalities in the cryptosphere, including Seed CX CEO Edward Woodford also believe that tokenization is the future of digital asset trading.

Euronext’s investment in Tokeny shows the major players long bet on tokenization.

“Convinced of the long term impact of tokenization on the financial industry, Euronext is committed to developing solutions that continue to serve its clients and ecosystem going forward,” the European exchange stated on the press release.