With an enterprise blockchain network like BSV that scales without limits, anything and everything can be put on-chain, including the massive derivatives market. Tokenovate is targeting this $1.2 quadrillion sector with its pioneering products. As revealed by John Anderson, the last year has seen incredible growth as the need for transparency, efficiency and cost optimization increases.
title=”YouTube Video Player” frameborder=”0″ allow=”accelerometer; autoplay; write to clipboard; encrypted media; gyroscope; picture-in-picture; web sharing” referrerpolicy=”strict-origin-when- cross-origin”allowfullscreen=””>
Anderson is chief product officer at Tokenovate, a Cambridge, UK-based company that provides distributed financial markets infrastructure. Its products, which include smart contracts and tokenization, enable programmatic management of trading flow lifecycle events in the derivatives industry.
At the London Blockchain Conference, Anderson told CoinGeek Backstage that the company had just launched a minimum viable product (MVP) for its derivatives market solution.
“What we implemented over the past year was the creation of a lifecycle trading engine that relies on the blockchain itself. We use smart contracts to manage the lifecycle of derivatives transactions and integrate domain models into them. We validate from (trading) venues, over-the-counter, etc. he told CoinGeek Backstage reporter Claire Celdran.
While Tokenovate has primarily focused on derivatives trading, Anderson revealed that it is exploring tokenization and lifecycle management of carbon credits. In 2023, the company launched the world’s first smart legal contract for voluntary trading of carbon credit derivatives.
The voluntary carbon credit market allows companies to pay to offset carbon dioxide and other greenhouse gas emissions. This sector is worth $1 billion today, but it is expected to reach $50 billion by 2030, according to McKinsey.
As this market is still relatively new, Tokenovate is looking to become one of the pioneers with its unique blockchain products. It recently signed a collaboration agreement with a peatland restoration development partner in Scotland for carbon credit purposes. Tokenovate created tokens and derivatives for the company, which it then sold to its customers; the entire lifecycle is managed on the Tokenovate platform.
“We enrich the tokens primarily with location and LEI (legal entity identifier) data, which increases the value and integrity of the carbon credit itself and, in the long term, increases the value for the whole market,” Anderson said.
Tokenovate’s platform is asset class agnostic. This allows the company to switch between any viable asset class, and Anderson revealed that the company is already exploring various other asset classes.
“We are targeting the financial sector for capital markets and creating a platform that can be shared as a multi-tenant cloud-based SaaS platform. It can be shared across a number of ecosystem partners where you can trade through platforms, provide custody of digital assets and bring counterparties onto that platform.
Watch Sustainability and finance: a look at the impact of climate change
title=”YouTube Video Player” frameborder=”0″ allow=”accelerometer; autoplay; write to clipboard; encrypted media; gyroscope; picture-in-picture; web sharing” referrerpolicy=”strict-origin-when- cross-origin”allowfullscreen=””>
