[Narrator]

Hello everyone, welcome back to the TokenMinds Training series.
Today we’ll discuss how tokenization is transforming capital markets by replacing clearing, reconciliation, and idle capital with real-time settlement.

This session focuses on practical impact.
We’ll look at how real-time settlement replaces multi-day clearing cycles and how banks and market participants can redesign settlement and liquidity operations to significantly improve capital efficiency.

Tokenization represents financial assets such as bonds, equities, and funds as digital tokens.
Ownership, settlement, and compliance rules are embedded directly into smart contracts.
All participants operate on a shared ledger, creating a single source of truth across investors, custodians, and regulators.

Traditional settlement traps capital for days under T+2 cycles.
High minimum trade sizes and thin secondary markets reduce liquidity and increase yields.
Manual reconciliation across clearing houses and custodians consumes capital and time.
For executives, this results in lower capital velocity, weaker balance sheet efficiency, and higher funding costs.

Tokenization removes structural friction from market infrastructure.
Settlement happens instantly, eliminating capital lockups.
Collateral can be reused instead of sitting idle.
Shared ledgers reduce reliance on intermediaries.
Automation simplifies post-trade processing and lowers operational risk.

UBS became the first global bank to move tokenization into real balance-sheet deployment.
It issued a CHF 375 million digital bond on SIX Digital Exchange.
The bond was dual-listed on both SDX and the traditional SIX Swiss Exchange.
The result was instant settlement, lower costs, and improved capital efficiency.

UBS issued the digital bond on SDX, a regulated platform with an embedded central securities depository.
Settlement used atomic delivery-versus-payment smart contracts, exchanging cash and securities in one transaction.
This removed clearing houses, eliminated T+2 delays, released locked capital immediately, and removed counterparty credit risk.

UBS locked the digital bond into collateral smart contracts without transferring ownership.
The bond continued earning coupons while serving as collateral for repo and derivatives trades.
In cross-border repos with SBI and DBS, smart contracts automated margin, escrow, and release.
Settlement time dropped from days to seconds, and collateral velocity increased two to three times.

The bond was issued as fungible on-chain units, allowing ownership below traditional minimum lot sizes.
These units traded continuously on SDX while remaining synchronized with SIX through dual listing.
Automated market makers enabled 24/7 liquidity.
Trading volume increased by roughly forty percent, and bid-ask spreads tightened significantly.

Building internal blockchain teams can take years.
TokenMinds accelerates deployment through proven production experience.
We’ve deployed tokenized payment infrastructure for major banks, integrated private blockchains with existing payment gateways, and delivered live systems that help internal teams build capability faster.

TMX Tokenize is a full-service tokenization platform that reduces time-to-market from years to months.
It provides battle-tested smart contracts for instant settlement and programmable collateral.
The platform integrates with regulated custody and core banking systems, undergoes independent security audits, and supports both public and private blockchains for maximum flexibility.

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