The Bank of Italy’s Milano Hub has pledged its support for an innovative project developed by Cetif Advisory to explore the potential of a security token ecosystem within institutional decentralised finance (DeFi).
Contrary to commercial goals, the project focuses on expanding the scope of analysis for security tokens on secondary markets. These tokens represent digital ownership of tangible real-world assets. Imanuel Baharier, the General Manager of Cetif Advisory, emphasised the importance of creating a secure and transparent DeFi operating environment for supervised entities without compromising regulatory compliance.
The project’s primary objective is to enable institutional market participants to operate safely in the DeFi landscape while adhering to regulatory guidelines. It will also enhance Cetif Advisory’s Lionity platform, renowned for its “institutional grade automated market maker” capabilities.
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Cetif Advisory, a spinoff from the Cetif Research Centre at the Università Cattolica del Sacro Cuore in Milan, collaborates with prominent entities like Polygon Labs and Fireblocks to bring this ambitious project to fruition. Joining forces with Italian banks, asset management companies, and ten other financial institutions, they are set to play a significant role in the project.
The project, selected during the Milano Hub’s second call for proposals, stands among the seven fintech initiatives receiving the green light. Over the next six months, it will receive invaluable support from the Milano Hub through expert guidance and comprehensive regulatory research.
Tokenised securities represent a burgeoning frontier in blockchain technology. Citi Global Perspectives & Solutions predicts that the tokenised securities market could grow to an impressive worth of $4 trillion to $5 trillion by 2030, with private equity and venture capital leading the pack, followed closely by real estate.
