Tokenize structured products
to enhance global reach
and investment liquidity
$16.3 trillion of assets will be tokenized by 2030
The problem
The structured products market is hindered by illiquidity, manual processes, and high administrative costs, which delay price discovery and limit timely exits. These inefficiencies also complicate income distribution, investor updates, and regulatory compliance, increasing operational risks and costs.
High issuance cost and lengthy issuance process
Structured product issuance is slow and costly due to manual processes, intermediary approvals, and complex legal and regulatory requirements. Traditional issuance takes 8 to 24 weeks, with fees accounting for 15-25 bps of the total value, adding to administrative burdens. The MBS market faces even greater challenges, as intricate structuring and manual systems further delay time-to-market and reduce efficiency.
Limited liquidity and pricing challenges
Structured products suffer from limited liquidity, leading to slow and imprecise price discovery, making real-time valuation difficult. The lack of a robust secondary market restricts quick exits, often requiring lengthy and resource-intensive auction processes. Manual processes and limited trading platforms further contribute to market inefficiencies, complicating portfolio management and asset allocation.
Income distribution and investor update inefficiencies
Manual processing of coupon and dividend payments leads to inefficiencies and potential errors, while multiple intermediaries create delays in investor communication. Preparing performance reports and regulatory disclosures is resource-intensive and prone to delays, further complicating compliance. Additionally, managing corporate events, restructurings, and early redemptions increases administrative burdens and operational costs.
The solution
Tokenizing structured products boosts efficiency, expands global market access, streamlines investment processes, offering a competitive advantage.
Enhance revenue generation
Tokenization of structured products enables greater liquidity, making it easier for a broader range of institutional investors to participate. This increased accessibility and market efficiency provides access to new capital sources, drives higher transaction volumes, ultimately boosting revenue generation for structured product managers.
Achieve operational cost savings
Tokenization streamlines structured product operations by automating processes like trade settlements and investor record-keeping, reducing manual intervention and administrative overhead. This results in lower operational costs, as it eliminates the need for intermediaries and simplifies compliance management.
Improve liquidity and market access
Digitized structured products can be traded on secondary markets, enabling faster price discovery, easier exit opportunities, and broader investor participation.
The numbers
26%
Increase in digitization of structured products between 2023 and 2024
Source: ISSA
15.5%
Year on Year increase in Green Bond Issuance over the 2023-2024 period
Source: Climate Bonds Initiative
1T
Sustainable Bond issuance forecast
Source: Moody’s
The success stories
Bank of China structured notes issuance
In 2023, BOCI successfully issued CNH 200M in tokenized structured notes. The product was originated by UBS and placed to its clients in Asia Pacific.
JP Morgan repo issuance
J.P. Morgan’s Onyx Digital Assets (ODA) projected $20 million in savings on $900 billion in tokenized repo volume by the end of 2023. Full savings projections reach 56% against traditional repo financing.
China ABS tokenization volume
ABS Tokenization volume has grown to USD 500M+ in China
Our institutional-grade solution
How we create value
Asset tokenization solution
Our asset tokenization services and platform allows investors to digitize and trade alternative assets in a secure, efficient, and transparent way.
By converting physical or traditional assets into digital tokens on the blockchain, we eliminate the complexities of cross-border transactions and improve liquidity. The platform provides instant access to global markets, streamlined investment processes, and enhanced regulatory compliance, making it easier for institutional investors to manage and trade their portfolios.
Secondary trading platform
Our secondary market platform enables easy trading of tokens created through our asset tokenization platform. It provides a secure and efficient environment where tokenized assets can be bought and sold, enhancing liquidity and offering investors more flexibility.
By allowing seamless transactions and real-time access to the market, the platform simplifies portfolio management and ensures regulatory compliance, making it easier for institutional investors to rebalance and trade their holdings.
Token management services
Our token management services handle all post-transaction processes, including income distribution, redemption processing, and ongoing compliance management. These services ensure that tokenized assets are efficiently managed throughout their lifecycle, providing investors with a seamless experience.
By automating these tasks, we reduce administrative burdens, improve accuracy, and ensure regulatory compliance, allowing institutional investors to focus on their investment strategies while we take care of the operational details.
The strategic opportunity
Accelerate growth and market reach
Tokenization allows structured product issuers to unlock access to previously untapped global markets and new investor segments. By enabling cross-border transactions, improving liquidity, and streamlining settlement processes, issuers can significantly expand distribution channels and accelerate growth.
Drive innovation in structured product offerings
Blockchain technology empowers issuers to design more flexible and investor-friendly products, such as fractional ownership of structured products, real-time performance reporting, and 24/7 secondary market trading. These innovations cater to evolving investor preferences and enhance product appeal.
Gain a competitive edge
By setting new standards in transparency, efficiency, and investor access, tokenized structured products can redefine market expectations.
Position for long term success
As investors, regulators, and financial partners increasingly demand transparency, automation, and real-time data, tokenization offers structured product issuers a future-proof solution that meets these demands while enhancing operational efficiency and regulatory compliance.