With an enterprise blockchain network like BSV that scales without limits, anything and everything can be brought into the chain, including the vast derivatives market. Tokenovate is targeting this $1.2 trillion sector with its groundbreaking products. As John Anderson revealed, the past year has seen incredible growth as the need for transparency, efficiency and cost optimization increases.
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Anderson is Chief Product Officer at Tokenovate, a Cambridge, United Kingdom-based company that provides distributed financial market infrastructure. The products, including smart contracts and tokenization, enable programmatic management of trading workflow 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 have implemented over the past year is the creation of a lifecycle trading engine powered by the blockchain itself. We use smart contracts to manage the lifecycle of derivatives transactions, and we integrate domain models into them. We validate from [trading] locations, OTCs, etc.,” he told CoinGeek Backstage reporter Claire Celdran.
While Tokenovate has primarily focused on derivatives trading, Anderson revealed that it has been exploring the tokenization and lifecycle management of carbon credits. In 2023, the company launched the world’s first smart legal contract for voluntary trading in 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 is expected to grow to $50 billion by 2030, according to McKinsey.
Since this market is still relatively new, Tokenovate wants to become one of the pioneers with its unique blockchain products. It recently signed an agreement to work 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 Tokenovate’s 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 entire 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 several other asset classes.
“We are targeting the financial sector for the capital markets and creating a platform that can be shared as a multi-tenant SaaS platform in the cloud. It can be shared with a number of ecosystem partners, where you can trade through venues, provide custody of digital assets and bring counterparties onto that platform.”