As of April 2nd 2019, Tokeny has partnered with global law firm DLA Piper to form the Digital Securities Alliance (DSA). As a compliance-focused organization, DSA will look to bridge the gap between tokenized securities and securities regulations in jurisdictions throughout the world.
Tokeny, DLA Piper, and the Digital Securities Alliance Explained
Tokeny is a tokenization platform which aims to ensure compliance throughout the initial issuance and secondary market trading of tokenized securities.
DLA Piper is a law firm with lawyers located in over 40 countries.
The two have partnered to bring regulatory clarity to the realm of digital securities, a term synonymous to security tokens.
Through the DSA, issuers will receive a proposal for “the full documentation and compliant workflows for the country of issuance and up to ten countries of distribution”.
Such a solution claims to provide everything needed for the end-to-end compliance of a regulated Digital Security Offering (DSO).
According to Luc Falempin, CEO of Tokeny,
“For the digital securities ecosystem to develop it’s essential for institutional investors to commit significant capital. By establishing this unique relationship with one of the world’s leading law firms, we are creating the right infrastructure and opening up a tremendous opportunity for institutional involvement. Institutions can finally invest in digital assets knowing the offering has respected the necessary regulations. The Digital Securities Alliance resembles a 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.”
Falempin also described the growing interest that many in the traditional securities industry have in the benefits of blockchain technology:
“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 DLT 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.”
The Need for Compliance in the Security Token Industry
A similar group was established in December of 2018.
The Millbrook Accord, which is governed by the Blockchain Token Association (BAT), is comprised of 12 enterprises— notably including tZERO and GSX— aiming to pioneer the digital securities industry.
The group was established to provide open source collaboration to achieve solutions regarding interoperability and regulatory compliance for security tokens.
Nonetheless, the DSA is one of many recent headlines featuring Tokeny, as of late.
In recent months Tokeny has announced numerous partnerships, including Issuance, Lition, and Blocktrade.com
They also launched investorID in late March 2019, a means to verify identity and investment eligibility for investors and issuers based in Europe.
What do you think of the DSA? Is the organization a missing piece of the puzzle for solving regulatory compliance concerns? We want to know what you think in the comments section below.
Image courtesy of Tokeny.