Tokenized Financial Asset Exchange

The financial industry and in particular the banking industry is undergoing through a significant transformation, much like many other industries, very commonly attributed to the tokenization of digital (and physical) financial assets including a country’s currency. The emergence of cryptocurrencies has led to new opportunities to be explored in digitization of a variety of financial assets, like currencies (central or commercial bank digital currencies or bank deposits), securities, under the paradigm of transparent, interoperable, highly resilient systems like Distributed Ledger Technologies (DLTs).

In this project our cryptography and DLT experts investigate optimal ways to bring together privacy in asset exchange (confidentiality of the transactional data of individuals or institutions), with transparency in transaction processing, while complying with regulation around audit support and strong accountability of the users of the system. As early outcomes of this work, open source project Token SDK is featured exhibiting modular architecture to allow compatibility with any transaction processing system (centralized or DLT).

Aiming to address privacy concerns in the emerging digital assets space, the TokenSDK is enhanced with a variety of asset exchange protocols offering different degrees of privacy, based on Zero Knowledge Proofs or simpler cryptographic constructs. Finally, the Token SDK employs cryptographic agility to enable quantum readiness of the applications built on top of it, as well as compliance with HTLC protocols to allow interoperability with other HTLC-enabled DLT systems.

The TokenSKD is one of the important elements of a secure, privacy preserving tokenized asset infrastructure and is optimally connected to Hyperledger Fabric platform.