Digital Asset Servicing.

New processes for new assets.

Processing digital assets — from tokenised securities through crypto fund units to crypto-assets such as e-money tokens — changes the value chain fundamentally. Crypto securities registrars, transfer agents, crypto custodians and DLT trading and settlement systems complement or replace classic intermediaries. Established processes change as a result and have to be adapted to public or private DLT networks.

Custodian banks, depositaries, crypto custodians and other service providers face the task of rethinking asset servicing processes such as custody procedures or settlement mechanisms — without replacing their existing core banking systems in the process. New processes and settlement technologies have to be integrated into the existing infrastructure and internal control systems. Depending on the asset class, different regulatory requirements apply, for example from MiCAR, the German Banking Act (KWG) and MaRisk, or from the eWpG and MiFID II.

What we do (selection)

• Gap and impact analysis of existing processes before introducing tokenised securities, crypto-assets and other asset classes across the entire value chain
• Business analysis and development of concepts for processing crypto-assets in the trading and custody business of financial institutions
• Design and roll-out of custody and settlement processes for tokenised securities and other asset classes
• Introduction of workable product governance for digital asset servicing
• Selection and evaluation of technology vendors, data providers and regulated service providers — for robust processes that meet the standards of regulated financial institutions

Selected engagements (anonymised)

• Advice and business analysis for a transaction bank on developing its crypto trading and custody offering in the mass market
• Advised a settlement platform for tokenised securities on introducing scalable settlement processes for digital financial instruments
• Project lead for the introduction of custody and settlement processes for tokenised securities at a German custodian bank
• Built core processes for customer lifecycle management and embedded AML procedures for a stablecoin issuer
• Developed processes for offering and settling crypto fund units for a crypto securities registrar and a depositary