Blockchain infrastructure company Fireblocks has joined the Capital Markets and Technology Association (CMTA) to collaborate on and develop tokenisation of digital currencies using distributed ledger technology (DLT).
Central to the collaboration will see Fireblocks alongside the Swiss-based independent organisation work on the CMTA Token and its development, an open standard for smart contracts designed specifically for the tokenisation of financial instruments.
Fireblocks has already worked extensively with the CMTA Token on client engagements, integrating open source smart contracts into the Fireblocks Tokenisation Engine, enabling businesses to deploy and manage the CMTA’s smart contracts directly from the Fireblocks platform.
The digital currency seeks to make it simple for participants in the tokenization value chain to seamlessly and securely work with products issued to the CMTA standards by other participants.
The CMTA Token is one of the token standards available in the Fireblocks Tokenization marketplace. Businesses can utilise it when creating their tokenization solution using the Fireblocks Tokenisation Engine.
Furthermore, as a member of the CMTA, Fireblocks will collaboratively develop and define standards relating to the tokenization of traditional financial instruments. It is a framework that defines necessary and optional functions that can be used for tokenizing equity and debt securities under Swiss law.
Francois Schonken, Senior Director for Tokenization at Fireblocks, also joins the CMTA Technical Committee, which is responsible for overseeing the technological aspects of its standardisation projects.
He said: “We are delighted to join the CMTA to help define industry standards to facilitate the use of blockchain technology in capital markets.
“As a rapidly growing number of Swiss banks and financial institutions explore ways to tokenise financial assets, the development of tokenisation standards and best practices.”
