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.
A critical success factor for such systemic projects is represented by the establishment of a proper cooperative ecosystem, in order to encourage all the players (originators, arrangers, servicer, investors, legal advisors, etc.) to utilize the solution and thus turning it into a standard for the whole industry. We think this is a great opportunity for Institutions to establish themselves as thought leaders and innovators. The sandbox is a proven work method and environment, strongly appreciated by the Italian regulators (BankIT, IVASS, Consob), where clients can help design the future of the industry and contribute to support the Italian economy (through the financing of SME) and help the retail investor to safely and transparently supply capital to this core part of our productive system.
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