The race to create a standardized framework for a new era of tokenized securities on the blockchain is ramping up. Often cited as the ‘future of banking,’ tokenized financial instruments present some compelling advantages in areas such as automated compliance, settlement times, and asset interoperability.
Issuance platforms for security tokens, which are securities issued and tradeable on a blockchain, are on the rise as service providers enter a budding market gleaming with potential. One firm, Mt Pelerin, is striving to extend the concept of tokenized securities to an entirely new dimension, building a whole bank on the blockchain in Switzerland.
It’s an ambitious goal, and their open-source, compliance-focused tokenization framework was the first step in creating a modular and durable framework for the issuance of financial assets on Ethereum. Now, Mt Pelerin has taken the next significant step forward on its path towards open finance with the announcement of its one-stop shop tokenization services to supplement the open-source tokenization framework.
According to, Arnaud Salomon, MT Pelerin Founder, and CEO,
“The purpose of our services is to provide easy access to startups and companies in the digital asset market to the most advanced compliant tokenization framework and professional services.”
The Future of Open Finance
Much like how the early revelations of the Internet’s potential in the 1990s helped to reshape much of Wall Street today, financial institutions are slowly beginning to realize that the trend towards open financial products is inevitable.
Based on the concept of bringing more transparency, efficiency, automation, and censorship-resistance to the financial system, open finance [i.e., DeFi]is an emerging trend in the cryptocurrency market. Open lending protocols that issue loans via smart contracts — such as MakerDAO – along with other financial instruments such as security token styled bonds built on the network Ethereum are making headway among conventional finance entities.