The SILC Group (SILC), a leading alternative assets solutions provider based in Australia with more than $2 billion in funds under supervision, announced today it will partner with Tokeny, the leading institutional tokenization solution provider. Together, they aim to realize SILC’s ambitious digitalization vision by upgrading alternative assets onto blockchain through tokenization.
The collaboration begins with a pilot project aimed at tokenizing a test fund using Tokeny’s unique tokenization infrastructure. The pilot project will assess the potential of blockchain to ultimately replace the various legacy centralized systems that are used to administer funds used by SILC to unite investors and capital seekers within the alternative assets industry.
By combining both parties’ deep expertise, it is intended they will be able to offer the compliant tokenization of alternative assets in Australia and across the region, by delivering institutional-grade solutions in the issuance and lifecycle management of real-world asset tokens.
The announcement marks a transformative step within the alternative assets industry as institutional involvement across blockchain begins to ramp up and significant players enter the market. The traditional way of issuing financial products is time-consuming, multi-tiered and involves many steps using cumbersome systems and processes. Through blockchain technology, parties can benefit from using one single and global infrastructure that can compliantly improve transaction speeds, utilize automation, and is accessible 24/7/365 days a year.
By using the ERC-3643 token smart contract standard, SILC will have the ability to automate compliance validation processes and control real-world asset tokens while preserving typical features of a blockchain like immutability and interoperability.
Blockchain technology offers a potential paradigm shift in the efficiency of capital markets, with The SILC Group seeking to pass these efficiency and service improvement gains along to our clients. We are excited to be working with Tokeny on this pilot as we explore ways to further support our clients and enhance risk management activities, as well as increase the velocity and scalability of the solutions we provide.
Alternative assets are one of the most suitable assets to be tokenized to make it transparent, accessible, and transferable, which has been historically hard to do. Our collaboration with The SILC Group underscores the growing recognition among regulated institutions of tokenization's tremendous potential. It's no longer a question of if tokenization will occur, but rather, when it will fundamentally transform the financial landscape.
