DLA Piper, one of the most renowned global law firm has announced the launch of a tokenization platform in collaboration with Aldersgate DLS (Digital Ledger Solutions).
A piece of art work by Chinese artist Wang Xiao Bo was the first to be tokenized through the Aldersgate DLS TOKO platform with legal advice provided by DLA Piper.
The platform however can be used more widely, including to tokenize a fund or a property, the law firm says.
Little further detail is provided beyond the company saying the platform provides smart contract functionality and digital asset creation functionality and assurance.
The blockchain itself is Hedera Hashgraph, a Proof of Stake (PoS) network run by global brands, including DLA Piper itself.
Making this a controlled environment for still very experimental tokenization projects in a fairly fast moving field where the law is finding it somewhat difficult to keep up.
Numerous jurisdictions are trying to update their legal frameworks to account for the digitization opportunities now available in stocks, properties, art, or indeed capital formation.
The involvement of a somewhat prestigious law firm in tokenization may aid these efforts, but it is yet to be seen how this toko platform will be greeted by the market.
“Aldersgate DLS and DLA Piper have spent an immense amount of time studying the asset tokenization challenge, the legal issues surrounding security token creation and fund raising, and the platforms needed to deliver such offerings at scale,” said Scott Thiel, Technology partner at DLA Piper and the leading lawyer for TOKO.
“TOKO is the result of years of research and development. We’re thrilled to finally showcase this proof of concept and look forward to working with our clients and ecosystem partners who are keen to take advantage of the opportunities created by the latest technologies, with a reputable and trusted business partner who can help them navigate the legal complexities of tokenisation.”
There are also practical complexities with tokenizing physical items, as opposed to digital assets, because the asset doesn’t necessarily have to move with the token.
Where a fund is concerned or a stock, then the token itself can be the fund or stock, with tokenization opening here great opportunities, certainly for efficiency gains, honesty enforcement, and much else.
Where art tokenization is concerned however or property, it can get more complicated, but both need ownership services and thus both will probably gradually be upgraded to the tokenized digital age.