[Narrator]

Hello everyone, welcome back to the TokenMinds Training series.

Today we’ll walk through how to move from simple token issuance to real institutional liquidity using TMX Tokenize and Canton Network.

Issuing a token does not create a market. 

Most platforms stop after minting the asset.

There are no built-in institutional buyers.

Each new asset restarts KYC checks.

Compliance is handled off-chain, manually, and slowly.

The result is a digital asset that is still illiquid.

Institutional liquidity requires three things:

Regulated buyers, reusable compliance, and trusted settlement.

TMX Tokenize is an institution-grade asset tokenization platform built by TokenMinds, an ISO 27001-certified Web3 and AI firm. 

It is not just an issuance tool.

It connects asset configuration, investor verification, compliance enforcement, and settlement into one workflow.

When an asset goes live, it connects directly to Canton Network, which operates at institutional scale with trillions in tokenized assets and large daily repo volumes. 

The issuer must handle investor onboarding manually, repeat KYC for each new deal, and rely on slower settlement processes. Liquidity depends on finding buyers after launch, and compliance is often reviewed outside the contract.

TMX Tokenize integrates issuance, verification, compliance, and settlement into one system. Investors verify once and reuse credentials. Rules are enforced automatically at contract level. Settlement is atomic, not delayed. Instead of launching into isolation, the asset connects directly to an institutional network from day one.

The conclusion is simple: traditional models create a digital asset, while TMX creates an asset that is structurally ready for institutional liquidity from day one.

1st is, The issuer configures the asset inside the TMX dashboard. 

They define:

Asset details and supply

Investor eligibility rules

Jurisdiction limits

Lock-up conditions and fees

These rules are written directly into the smart contract.

Outcome: The asset is institution-ready at launch.

It begins when an institution presents its compliance credential.

That credential is submitted to TMX Tokenize, which integrates with a Canton participant node and issues a Party ID. 

Next, the Daml smart contract performs an on-ledger check.

It verifies whether the Party ID is valid and whether the transaction meets the encoded rules.

If everything is valid, access is granted.

The transaction is permitted, and rules are applied automatically.

If the Party ID is missing or invalid, access is denied immediately.

The transaction is blocked.

No settlement occurs.

The key point in the image is this:

The rule is embedded inside the token itself.

The asset and its compliance logic travel together across venues.

There is no extra issuer workload as activity grows.

After verification and contract-level compliance are complete, TMX publishes the assets to the Daml contract on the Canton ledger.

At that moment, the asset is registered on participant nodes.

Institutions that have permissioned to the smart-contract and already running Canton nodes can see the assets automatically.

Each node sees only the portion of the transaction relevant to it.

Need-to-know data distribution means information is shared strictly between allowed parties to that transaction.

And all data exchanged between nodes is encrypted.

This means the asset becomes tradable within a production institutional network from day one.

The result is immediate institutional market access, not just a token sitting on a blockchain.

Before TMX, a token may exist on-chain but still face onboarding friction, manual compliance checks, and delayed settlement. Market depth remains limited because participation is not seamless.

After TMX, verification is reusable, compliance is embedded in the contract, and settlement completes instantly. The asset enters a live institutional environment instead of waiting for liquidity to form.

The shift is from isolated issuance to connected institutional trading infrastructure.

For your institution, this means  a tokenized asset that goes live in an active institutional market from day one. It can be accessed by regulated institutions, without needing a separate listing or extra market support. At the same time, all institutional activity stays private, investor identities remain confidential, and compliance rules are enforced automatically on every transaction.

If you are ready to move from isolated token issuance to real institutional liquidity with built-in compliance and settlement, TMX Tokenize provides a structured path forward.

Thank you for watching and see you in the next training video.