Security Token and Alternative Investment Sandbox

CeTIF (the research center of Technology, Innovation and Financial Services of Università Cattolica in Milan) and Reply have promoted, since 2016, the “Italian Blockchain Sandbox”, an initiative aimed at testing innovative blockchain-based systemic platforms and experimenting with digital processes with real data in a production environment. In order to address all of the regulatory aspects and legal amendments to be performed to achieve production readiness, institutional partners and regulators such as Banca d’Italia, IVASS and Consob are actively involved as contributing members within the sandbox initiative. In this framework, a new project is going to be launched in 2021 with the main objective of spreading the alternative/illiquid asset supply for investors. This goal can be achieved by creating a digital platform both to tokenize an illiquid asset and to digitally support the current securitization processes. The platform will increase operational efficiency and enhance transparency within the industry, leading to an overall risk reduction and increasing pricing accuracy.