Apex Acquires Majority Stake in Tokeny for $32 Billion Asset Tokenization

Apex Group, a prominent financial services provider with over $3 trillion in assets under administration, announced on Tuesday its acquisition of a majority stake in Tokeny, a Luxembourg-based firm specializing in tokenizing real-world assets (RWA) on public blockchains. This strategic move is part of Apex's plan to fully own Tokeny within the next three years, following an initial investment in late 2023. The terms of the acquisition were not disclosed in the press release, and a spokesperson for Apex did not immediately respond to requests for comment.

The acquisition aligns with the growing trend among traditional financial firms exploring tokenization as the next significant development in capital markets. By leveraging blockchain technology, these firms aim to facilitate the movement of assets such as bonds, funds, and other securities. For institutional investors, tokenization offers the benefits of simpler cross-border transactions, faster settlement times, and the creation of new liquidity channels. According to a report from BCG and Ripple, the market for tokenized assets could reach $18 trillion by 2033.

Peter Hughes, the founder and CEO of Apex, emphasized the transformative potential of tokenization. "Tokenization is a foundational shift in how assets will be managed, distributed, and accessed," he stated. "Our strengthened partnership with Tokeny is key to delivering on our vision to be the infrastructure provider in the digital era of finance."

Tokeny's infrastructure has already been utilized to tokenize over $32 billion in assets, supporting the entire lifecycle of tokenized securities from issuance to transfer and compliance. The firm is particularly known for establishing ERC-3643, a widely adopted standard for compliant digital asset transfers. Apex plans to integrate Tokeny’s team and tools in-house, aiming to provide clients with a comprehensive infrastructure for blockchain-based finance. This will involve layering smart contracts and decentralized protocols on top of Apex's traditional services, offering a seamless transition into the digital finance era.