Apex Group’s acquisition of majority ownership in Tokeny paves the way for tokenized finance to enter the mainstream, promising simpler cross-border transactions and faster settlement.
The world of finance is witnessing a significant shift with traditional financial firms increasingly looking at tokenization as the next frontier. The trend, also known as Real-World Asset (RWA) tokenization, involves converting real-world assets into digital tokens that can be traded on public blockchains.
Tokeny, a Luxembourg-based firm specializing in RWA tokenization, has become a key player in this space. Apex Group, a financial services provider with over $3 trillion in assets under administration, has acquired a majority stake in Tokeny as part of its efforts to push tokenized finance into the mainstream.
Tokeny is a Belgian-based fintech company that provides a digital asset issuance platform for issuing, managing, and trading financial securities.
The platform enables issuers to create, manage, and distribute digital assets such as bonds, equities, and other financial instruments.
Tokeny's technology allows for the creation of unique digital tokens that represent ownership or rights in these assets.
The platform is designed to increase efficiency, reduce costs, and enhance transparency in the issuance process.
Key Benefits of Tokenization
Tokenization promises several benefits for institutional investors, including simpler cross-border transactions, faster settlement, and new liquidity channels. The process also offers improved transparency and reduced risk associated with traditional asset management.
Apex Group’s Vision
Peter Hughes, Apex Group CEO, believes that tokenization is a foundational shift in how assets will be managed, distributed, and accessed. With the acquisition of Tokeny, Apex aims to deliver on its vision to be the infrastructure provider in the digital era of finance.
Apex Group is a global financial services provider that offers a range of services, including fund administration, corporate and private client services, and depositary services.
With over 2,000 employees across 40 offices worldwide, Apex Group manages over $1 trillion in assets under administration.
The company was founded in 2003 and has since grown through strategic acquisitions and organic expansion.
Apex Group is headquartered in Bermuda and operates under the regulatory framework of the Bermuda Monetary Authority.
Tokeny’s Expertise
Tokeny has already facilitated the tokenization of over $32 billion in assets using its ERC-3643 standard for digital asset transfers. The company’s expertise will be brought in-house by Apex, enabling it to offer clients a turnkey infrastructure for blockchain-based finance.
A Growing Market
The market potential for tokenized assets is significant, with reports projecting the sector could balloon to a trillion-dollar market by 2033. ‘Ripple and BCG have estimated that this market could reach $18 trillion by 2033, driven by increasing adoption among traditional financial firms.’ As Apex Group continues to push tokenized finance into the mainstream, it remains to be seen how this trend will shape the future of asset management and investment.
Tokenized assets are digital representations of real-world assets, such as art, real estate, or commodities.
They utilize blockchain technology to create a secure and transparent record of ownership.
This market has gained significant attention in recent years due to its potential for increased liquidity and accessibility.
Tokenized assets can be traded on various platforms, allowing investors to buy and sell fractions of the underlying asset.
The global tokenized assets market is expected to grow rapidly, driven by increasing demand from institutional and retail investors.
