Finance: TOKO

Introduction

DLA Piper is a global law firm that serves clients from over 40 countries. They advise their clients on the rules and regulations around the financial asset issuance process and the compliance to its associated regulatory requirements. For global financial institutions to gain confidence and certainty in the process of financial asset issuance requires evidence of strict compliance with these regulatory rules. In the traditional finance space, this involves the guidance and assurance from a legal entity at every step.

As the industry continues on its path of digitisation, participants in this ecosystem are increasingly looking to innovative and digitally native alternatives to traditional financial assets, which are still tied to this day to physical documentation and outdated processes.

However, for digital assets to gain widespread adoption, innovators have to demonstrate the same (if not more) rigor in enforcing regulatory requirements throughout the issuance process.

When a financial institution issues a new financial asset, it has to decide on the parameters of the issuance (such as size, dates, initial investors and jurisdictions). This process involves a number of different entities, including Brokers, Exchanges, Custodians, Registrars. Each of these participants has to perform a series of tasks to allow for the issuance of the asset to be compliant. DLA Piper advises the issuer on the adherence to compliance rules and regulations at every step in the process. Only with all the verifications completed, can a financial institution issue the assets and transfer them to investors.

DLA Piper has a dominant position in the space of regulatory and compliance advisory and legal assurance for asset issuance in traditional capital markets. TOKO combined that expertise and market presence with forward thinking technology in process automation and tokenization, making TOKO a pioneer in digital transformation of the financial market. More specifically, TOKO has enabled fully automated issuance of digital financial assets with built-in regulatory compliance and legal assurance.

The TOKO product is built on the Luther Platform for Deep Process Automation, used by DLA Piper to deploy TOKO at scale and automate the highly complex processes of digital asset issuance. Using Luther’s compliance checking and verification modules, the client was able to automate the asset issuance process across its multiple participants. Furthermore, they were able to codify rules and regulations in the context of issuances of multiple asset classes across global financial markets. With TOKO’s process automation engine as a foundation, DLA Piper is not only able to provide its clients with compliance certainty and a world leading solution for digital asset creation, they can also focus their efforts on value-add advisory law services for their clients.