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5 November 20206 minute read

DLA Piper and Aldersgate DLS launch TOKO, a fast, secure and cost effective solution for buying and selling high value assets using blockchain technology

Global law firm DLA Piper in collaboration with Aldersgate DLS (Digital Ledger Solutions), has launched TOKO, a unique tokenisation engine and vital component in the digital asset ecosystem. Developed with Aldersgate DLS, TOKO provides smart contract functionality and digital asset creation functionality and assurance.

DLA Piper and Aldersgate DLS successfully completed the very first tokenisation project on the TOKO platform today, with a piece of fine art work commissioned and purchased by a group of DLA Piper Hong Kong partners. Created by Chinese artist Wang Xiao Bo, this bespoke project was structured as an unregulated security offering through the Aldersgate DLS TOKO platform with legal advice provided by DLA Piper.

While today's launch tokenised a piece of fine art, TOKO can be used to create fractions of any asset, whether that be a fund, or a multimillion dollar property. It can help asset owners create unique product offerings, improve asset liquidity and provide clients with access to a wider group of investors, and the creation of unique product structures. Tokenisation also enables exit opportunities and can reduce the risk of fraud through the strict, timestamped audit trails created through blockchain functionality.

Unlike existing tokenisation offerings in the market, TOKO provides clients with the unique combination of legal experience from a leading full service, global law firm coupled with cutting edge technological capabilities.

"Aldersgate DLS and DLA Piper have spent an immense amount of time studying the asset tokenization challenge, the legal issues surrounding security token creation and fund raising, and the platforms needed to deliver such offerings at scale," said Scott Thiel, Technology partner at DLA Piper and the leading lawyer for TOKO.

"TOKO is the result of years of research and development. We're thrilled to finally showcase this proof of concept and look forward to working with our clients and ecosystem partners who are keen to take advantage of the opportunities created by the latest technologies, with a reputable and trusted business partner who can help them navigate the legal complexities of tokenisation."

TOKO forms part of DLA Piper's Law& brand which delivers solutions beyond traditional legal services to help businesses succeed. In addition to creating a wide variety of token types and writing tokens' smart contracts in several prominent coding languages, TOKO facilitates capital distributions and voting by tokenholders, the transfer of tokens and the disposal or redemption of tokens into a secure token wallet. TOKO's functionality also includes broadcasts announcements such as distribution payment amounts, upcoming votes and proposed meetings.

TOKO has been developed in partnership with Hedera Hashgraph, which leverages the benefits of a private blockchain alongside the transparency and trust layer of the Hedera Consensus Service, a decentralized public network. Owned and governed by a council of the world's leading organizations including Avery Dennison, Boeing, Deutsche Telekom, DLA Piper, FIS (Worldpay), Google, IBM, LG Electronics, Magalu, Nomura, Swirlds, Tata Communications, University College London (UCL), Wipro, and Zain Group, Hedera provides the highest level of security. DLA Piper has also engaged BCW Group as Program Manager to shape the go-to-market strategy and form regtech infrastructure partnerships, Luther Systems, who act as the systems integrator for TOKO, and Macey & Sons, an art, antiques and luxury collectibles auctioneer based in Hong Kong.