Blockchain Firm Templum, CUSIP Global Services Partner To Bring CUSIP identifiers To Tokenized Assets

Announcements, News | June 29, 2018 By:

Token trading platform Templum Markets has teamed with security and entity identifier provider CUSIP Global Services (CGS) to bring CUSIP identifiers to the tokenized securities marketplace.

Templum Markets, a subsidiary of FinTech firm Templum Inc., is a broker-dealer fully approved in 50 US states and other foreign jurisdictions. Templum Markets’ Alternative Trading System (ATS) brings together blockchain and tokenized assets and facilitates transparent access to capital and the secondary trading of tokenized assets. Traders on ATS will be able to negotiate directly with one another on the platform. ATS also allows companies to launch a security token.

CUSIP Global Services is engaged in the securities identification business. It develops reference data solutions and provides a common language for identifying financial instruments, such as global financial instruments, including equity and debt issues, derivatives, and syndicated loans across institutions and exchanges. The CGS database contains issuer and issue-level identifiers, plus standardized descriptive data, for more than 14 million financial instruments and entities. CGS is also the designated national numbering agency responsible for assigning the International Securities Identification Number (ISIN) in over 35 other markets.

Under the agreement, CGS will issue unique CUSIP identifiers for all primary issuance and secondary transactions, known as Tokenized Asset Offerings (TAO), conducted on the Templum Markets’ platform. A CUSIP is a nine-character alphanumeric code that identifies a North American financial security for the purposes of facilitating clearing and settlement of trades. The CUSIP was adopted as an American National Standard under Accredited Standards X9.6.

Templum said the CUSIP identifiers will be used to help standardize the process of trading and tracking TAOs within investor portfolios. It will enhance the transparency in the tokenized security marketplace and also make these securities discoverable on leading market data vendor platforms.

“We are focused on bringing standardization and best practices for our issuers, enabling them to better communicate information about their products to potential investors,” said Vince Molinari, CEO Templum Markets. “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.”

The CUSIP system has grown over the years to cover corporate, government, municipal, and international securities, initial public offering’s, preferred stock, funds; certificates of deposit, syndicated loans, and US and Canadian listed options. Templum Markets claims that it will be the first broker-dealer to offer CUSIP identifiers for tokenized and digital private securities offerings.

“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.”