Digital Assets are popular almost in everyday business today, but the value proposition of blockchain technology is not fully addressed nor realised in any useful sense. The enterprise value creation in the era of future of finance is only possible if the composable value can be unlocked.
With that said, the current financial ecosystem is built along asset specific and product specific lines, with separate regulations, operations, technology and business entities for each asset class. Rather than encoding the full terms, conditions, processes and regulations of each asset class into bespoke smart contracts, composable tokenisation introduces a two-tier token approach to record ownership with title token and future flows with entitlement tokens (right to receive or the obligation to deliver future value).
Due to fragmented regulatory landscape, digital assets issuers have to navigate multiple local and regional frameworks to validate actors, activities, assets and architecture for each asset class. However, composable tokenisation could drastically simplify with the single operating model to manage current value Vs. future flows, which are two key components of any financial product.
Furthermore, by configuring the two key components and clustering the tokens, we can boost product innovation with assets features composed by clustering the two types of tokens, thus eliminating the need for new infrastructure, regulations or special purpose tokens to develop new products.
Composability is a design principle where systems consist of components that can be selected, assembled, and reassembled in various combinations to create customised financial products using composable tokens.
As part of our “Swiss Blockchain Academy” community ethos, we bring talent and tools to drive digital assets adoption and support the paradigm shift taking place. This is now addressed through the building blocked related to enabling composable tokenisation.
RWA Tokenisation
Concept Specification
Assesment
For selecting and mapping specific tech stack core attributes and distribution
Reg Applicability
Evaluate
Based on local and regional regulatory guidance, and what risk exposures can be managed and/or mitigated
Legal Framework
Alignment
With existing legal taxonomy and Code of Practice to ensure enforceability
Markets
Entry Points
Based on marketability, tradability, eligibility and enforceability of product structure using cluster of composable tokens
On-chain Identity
The academy best practices committee is developing a local initiative to create a proforma on-chain identity which can be repurposed and embedded in the composable digital ecosystem as part of a digital identity gateway to support the on boarding, verifying and authenticating of network participant and user credentials.
The aim is to develop a Minimum Viable Product (MVP) for the test case to realize community aspiration by leveraging modular design architecture to enable digital authentication gateway experience for members and peer groups.
