The SILC Group collaborates with Tokeny

The collaboration aims to advance SILC's digitalization objectives by transitioning alternative assets onto blockchain through tokenization. 

Commencing with a pilot project, the collaboration will focus on tokenizing a test fund using Tokeny's tokenization infrastructure. The pilot seeks to evaluate blockchain's potential to replace legacy centralised systems currently used by SILC in administering funds within the alternative assets industry. 

Through the integration of their respective expertise, both parties aim to offer compliant tokenization of alternative assets across Australia and the region. This involves delivering institutional-grade solutions for the issuance and lifecycle management of real-world asset tokens. This announcement signifies a step forward in the alternative assets industry, as institutional engagement with blockchain technology gains momentum and major players enter the market.

The advantages of blockchain 

According to Tokeny, traditional processes for issuing financial products are often time-consuming and complex. Blockchain technology offers a streamlined alternative, providing a single global infrastructure that enhances transaction speeds, automation, and accessibility. 

By adopting the ERC-3643 token smart contract standard, SILC aims to automate compliance validation processes and manage real-world asset tokens while leveraging blockchain features such as immutability and interoperability. The SILC Group views blockchain technology as potentially revolutionising the efficiency of capital markets. Through this collaboration with Tokeny, SILC aims to pass on efficiency gains to its clients, improve risk management activities, and enhance the scalability of solutions provided. 

Representatives from The SILC Group emphasised alternative assets' suitability for tokenization to improve transparency, accessibility, and transferability. In turn, officials from Tokeny underscored the growing recognition among regulated institutions of tokenization's potential to transform the financial landscape.