Tokeny and Lition Partner to Pilot a €20 Million Syndicated Loan

Tokeny and Lition Partner to Pilot a €20 Million Syndicated Loan

As of March 7th 2019, Tokeny and Lition have announced an agreement to develop new methods of security token compliance. The two will collaborate on Lition’s previously announced pilot project involving the VR Bank.

Tokeny and Lition Partner to Bring Added Compliance to Security Tokens

Tokeny is a platform which uses the T-REX token standard to ensure compliance throughout the initial issuance, secondary market trading, and overall life-cycle of security tokens.

Lition claims to be the only scalable public-private blockchain with deletable data features.

The two have officially partnered to add to the existing methods of compliant securities tokenization. Their addition will include the ability to protect and delete private data, while maintaining the typical features sought after with blockchain technology including immutability and security.

The announcement comes at a time when large industry players continue to enter the digital asset space, including NASDAQ and Fidelity.

The traditional methods of issuing securities requires time, features costly expenses, and involves numerous middlemen. Through distributed ledger technology however, security tokens can curtail the majority of such obsolete constraints.

As stated by Tokeny CEO Luc Falempin,

“The advantages of using blockchain technology in the issuance of securities are overwhelming. Those benefits are starting to be recognised by regulated institutions and this initiative is proof of that recognition. What has held this technology back from institutional adoption is the lack of compliance and regulation.”

Details of Lition and Tokeny’s Project with the VR Bank Explained

Lition has previously signed an agreement with both a real estate development company and the VR Bank. As a leading banking conglomerate in Germany, VR Bank works with more than $1 trillion in valued assets. The agreement involves the development of a solution to process syndicated loans on Lition’s blockchain.

According to the press release, the loan volume for a housing complex in Germany has a volume of approximately €20 million, which is set to be the basis to issue security tokens on Tokeny’s T-REX standard.

Lition CEO Richard Lohwasser provided the following comments on the news:

“We’re tremendously pleased to announce this initiative with Tokeny after having already announced our partnership with the VR Bank earlier this week. The benefits of tokenizing securities are very strong. So far high legal hurdles have hindered large scale adoption, but by ensuring data privacy and deletion with our unique technological solution, we’re finally one step closer to legal security token offerings. It opens up the door for many others to follow suit.”

What do you think of Tokeny and Lition’s partnership? Will tokenized loans be one of the first major areas of security token adoption? We want to know what you think in the comments section below.

 Image courtesy of Tokeny.