CUSIP Global Services (CGS) and Templum Markets are teaming up to bring industry standard CUSIP identifiers to the tokenised securities marketplace.
Templum Markets is a subsidiary of Templum Inc, a fintech and blockchain-focused holding company that operates at the intersection of innovative technologies and the modernisation of securities.
Under the agreement, CGS will issue unique CUSIP identifiers for all primary issuance and secondary transactions, known as Tokenised Asset Offerings (TAOs), conducted on the Templum Markets’ Platform. Built on the standard nine-digit CUSIP taxonomy that is ubiquitous in equity and fixed-income markets, the identifiers will be used to help standardise the process of trading and tracking TAOs within investor portfolios.
“We are excited to watch Templum Markets and CUSIP Global Services work together to increase standardisation and best practices in the digital assets space- this is truly a watershed moment in the evolution and adoption of security tokens,” says Chris Pallotta (pictured), CEO of Templum.
Templum Markets will be the first broker-dealer to offer CUSIP identifiers for tokenised and digital private securities offerings.
“We are focused on bringing standardisation and best practices for our issuers, enabling them to better communicate information about their products to potential investors. Our vision is to create increased liquidity opportunities for TAOs through our secondary trading ATS, and adding a CUSIP on each one is an important step toward achieving that goal,” says Vince Molinari, CEO Templum Markets.
The CUSIP identifier is a unique code assigned to financial instruments that allows the computer systems of different financial firms, market data vendors, and trading platforms to track these instruments like inventory through a supply chain. Today, more than 10 million securities, initial public offerings (IPOs), preferred stock, funds, certificates of deposit (CDs), and syndicated loans rely on the CUSIP as the universally-recognised, industry standard financial instrument identifier. By adding CUSIP IDs to its TAOs, Templum Markets is increasing transparency in the tokenised security marketplace by allowing analysts, brokers, and investors to rapidly identify issue-specific data. The addition of CUSIP IDs will also make these securities discoverable on leading market data vendor platforms.
“As tokenised securities continue to gain momentum as a valuable access point to capital markets, standardised, reliable reference data will be a key to ensuring transparency and efficiency for all market participants,” says Scott Preiss, Global Head, CGS. “As a pioneer in bringing institutional rigour to emerging asset classes, we are pleased to enter this new market and look forward to further expansion of our capabilities into blockchain-based marketplaces.”