CUSIP Identifiers to Be Assigned to Tokenized Asset Offerings
June 28, 2018 — NEW YORK–(BUSINESS WIRE)– CUSIP Global Services (CGS) a leading provider of unique security and entity identifiers and descriptive data that enable efficient global trading, and Templum Markets, a registered Broker-Dealer and Alternative Trading System (ATS) specializing in capital formation and secondary trading of digital and tokenized securities, today announced a collaboration to bring industry standard CUSIP identifiers to the tokenized 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 modernization of securities.
Under the agreement, CGS will issue unique CUSIP identifiers for all primary issuance and secondary transactions, known as Tokenized Asset Offerings (TAOs), conducted on the Templum Markets’ Platform. Built on the standard 9-digit CUSIP taxonomy that is ubiquitous in equity and fixed-income markets, the identifiers will be used to help standardize 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 standardization and best practices in the digital assets space- this is truly a watershed moment in the evolution and adoption of security tokens”, said Chris Pallotta, CEO of Templum, Inc.
Templum Markets will be the first broker-dealer to offer CUSIP identifiers for Tokenized and Digital private securities offerings.
Increased Liquidity Opportunities
“We are focused on bringing standardization 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,” said 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-recognized, industry standard financial instrument identifier. By adding CUSIP IDs to its TAOs, Templum Markets is increasing transparency in the tokenized 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 tokenized securities continue to gain momentum as a valuable access point to capital markets, standardized, reliable reference data will be a key to ensuring transparency and efficiency for all market participants,” said Scott Preiss, Global Head, CGS. “As a pioneer in bringing institutional rigor 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.”
Templum Markets’ parent company, Templum, Inc., became the first to be issued a CUSIP (88023L101) and ISIN (US88023L1017) for its TAO, making information associated with the company available to professional subscribers of the CUSIP look up service.
About Templum Markets
Templum is an innovative financial technology company focusing on creating a regulatory compliant marketplace for the primary issuance and secondary trading of digital assets through security tokens. Templum Markets, our captive Broker-Dealer Member FINRA/SIPC and Alternative Trading System (“ATS”) registered with the SEC and FINRA, will offer issuers a platform for the initial sale of their tokenized securities and both issuers and investors a centralized platform for secondary trading. Templum believes that the future of digital assets as demonstrated by the success of ICOs will be based on TAOs that are offered in compliance with the securities laws of the U.S. and other foreign jurisdictions. Templum believes that financial markets can benefit from the increased liquidity, transparency, and investor protection that blockchain technology provides. Templum intends to facilitate the growth and expansion of tokenized securities by implementing standards and best practices, including Anti-Money Laundering (“AML”) and Know Your Customer (“KYC”) programs, for the offering of tokenized securities and their subsequent secondary trading. Templum believes that there is significant market opportunity in the Tokenized Asset space as sectors such as Venture Capital, Private Equity, Real Estate and Limited Partnerships, to name a few, are prime to adopt the transformative Distributed Ledger Technology and smart contracts. Distributed Ledger Technology can bring an unprecedented level of transparency and liquidity to private markets through tokenization, and this technology can be used to benefit private companies across all sectors and stages.
About CUSIP Global Services
The financial services industry relies on CGS’ unrivaled experience in uniquely identifying instruments and entities to support efficient global capital markets. Its extensive focus on standardization over the past 50 years has helped CGS earn its reputation as a trusted originator of quality identifiers and descriptive data, ensuring that essential front- and back-office functions run smoothly. Relied upon worldwide as the industry standard provider of reliable, timely reference data, CGS is also a founding member and co-operates the Association of National Numbering Agencies (ANNA) Service Bureau, a global security and entity identifier database for over 40 million public and privately traded instruments, contributed by 82 national numbering agencies and 30 partner agencies representing 122 different countries. CGS is managed on behalf of the American Bankers Association (ABA) by S&P Global Market Intelligence, with a Board of Trustees that represents the voices of leading financial institutions. For more information, visit www.cusip.com.
About The American Bankers Association
The American Bankers Association represents banks of all sizes and charters and is the voice for the nation’s $13 trillion banking industry and its 2 million employees. Learn more at www.aba.com.