Reference data boost for tokenised assets

Templum Markets aims to make digital assets more attractive to institutions.

The collaboration between Templum Markets and CUSIP Global Services (CGS) to bring unique CUSIP identifiers to Tokenised Asset Offerings (TAOs) on the Templum Markets’ Platform represents a further step in the drive to help institutional investors gain comfort in engaging with digital assets.

Tokenised assets are envisaged as digital securities in compliance with US securities law, issued through a registered broker dealer with secondary trading on a registered alternative trading system. The identifiers will be used to help standardise the process of trading and tracking TAOs within investor portfolios.

“As tokenised securities continue to gain momentum as a valuable access point to capital markets, standardised, reliable reference data will be a key to ensuring transparency and efficiency for all market participants,” said Scott Preiss, global head, CGS.

According to Vincent Molinari, CEO, Templum Markets, the firm is focused on creating new market infrastructure for digital assets as securities. “The issuance and secondary trading of TAOs are greatly enhanced by the incorporation of the respected and accepted standard of CUSIPs,” he said. “We believe this will bring greater visibility, access to data and information for all investors.”

Molinari sees this as an important step in creating comfort for institutions to engage in these new tradable assets. “Digital Assets are simply unregistered securities whose ownership is reflected on a smart contract,” he added. “We started with paper certificates, went onto recorded ownership electronically and now the next step in progress is ownership recorded on a smart contract.”

A smart contract enables the creation of securities based on debt, equity, revenue share, profit participation etc. or a combination of these. “This allows for full transparency, continuity of information for all investors, archiving and audit trails that did not exist previously for this marketplace,” said Molinari. “We believe that the discount that is generally applied to illiquid instruments, whether, PE, PL or RE will be narrowed as investors will capture that delta as these instruments become more liquid.”

“We are focused on bringing standardisation and best practices for our issuers, enabling them to better communicate information about their products to potential investors,” he added. “Our vision is to create increased liquidity opportunities for TAOs through our secondary trading ATS and adding a CUSIP on each one is an important step toward achieving that goal.”