- The Living Lab is an interactive workshop project created by Tokenovate in collaboration with The Investment Association and ISDA.
- The goal of the Living Lab is to demonstrate the benefits and opportunities of using FINOS Common Domain Model and Blockchain.
- Attendees received a hands-on experience of using public blockchains versus private blockchains, and understand the differences between a “proof of work UTXO” chain versus a “proof of stake account state” chain; and learn more about automated post-trade processes.
- The Living Lab aims to show how to take a ‘legal-first’ approach to tokenisation and rights management, and how create and use digital assets. Most importantly, the Living Lab helps to bring the bigger picture to the changes the financial industry is going through, including the emergence of tokenised assets within open innovation ecosystems.
- The first session of the Living Lab attracted leading financial institutions to the table and saw positive feedback.
Introduction
On March 5th, we successfully launched our new workshop series, “The Living Lab”. This interactive in-person forum offers financial markets professionals practical, hands-on sessions designed to explore and learn innovative approaches to automating post-trade processes. Techniques discussed include tokenisation, blockchain technology, and smart contracts, each playing a crucial role in driving automation, interoperability, and efficiency across capital markets.
What is a Living Lab?
Definition and Purpose
The Living Lab is a collaborative and interactive workshop created by Tokenovate in collaboration with The Investment Association and ISDA. It aims to bring together stakeholders from various backgrounds to co-create solutions to real-world problems. Focusing on the concept of fund tokenisation, the Living Labs give attendees the opportunity to actively engage with new technologies such as tokenisation, blockchain, and smart contracts.
Exploring Fund Tokenisation Use Cases
Our inaugural Living Lab session centred on use cases for fund tokenisation – a transformative concept gaining significant momentum within financial services. The Living Lab focuses on practical applications and real-world challenges, fostering real change. Following detailed blueprints published by The Investment Association last year, the Living Lab session specifically examined the use of public blockchains, on-chain cash settlements, and digital securities depositaries. Our goal is to translate these theoretical frameworks into actionable strategies by inviting participants from funds and banks to directly explore and test digital asset workflows in authentic, real-world settings.
Benefits of a Living Lab
Advantages and Outcomes
The benefits of Living Labs are multiple. By engaging users directly in real-world theoretical and real-world challenges, Living Labs ensure that the solutions created are tailored to meet real demands and needs. This user-centric approach fosters collaboration and knowledge sharing among diverse stakeholders, leading to a better understanding of the Common Domain Model technology and its benefits. Additionally, Living Labs serve as a test bed for research activities, allowing for the validation of new ideas and technologies in real-world settings. The outcomes of a Living Lab can be transformative, including fostering greater awareness of these new technologies and driving more rapid change within the financial industry.
Leading Financial Institutions participated in the Living Lab Project
This first session attracted professionals from prestigious financial institutions, including UBS, Barclays, T Rowe, Vanguard, and Aberdeen. The Living Lab team facilitated the session, supporting participants in their exploration of blockchain technologies. Throughout the day, participants engaged deeply with these technologies, learned best practices for adopting a legal-first approach to tokenisation, and gained experience in handling digital assets such as cash and bonds. Demonstrations of practical use cases significantly enhanced participants’ understanding and generated valuable insights.
Feedback Highlights the Positive Impact of the Living Lab Project on Open Innovation Ecosystems
Feedback from attendees was overwhelmingly positive, reflecting the workshop’s value and effectiveness. Comments included: “Well done on practical exposure to implications of the technology. The expertise of the team is well appreciated,” and “The demo of actual trades provided a much clearer understanding and demystification of tokenisation, especially following the morning sessions.”
What to expect next with the Living Lab
Our next in-person Living Lab event will be held on April 3rd in London. If you are interested in participating, please contact Stephen Ashworth or Nathan Cropper via email at firstname.lastname@tokenovate.com.
