Citisoft Enables Tokenisation Product Innovation for Market Infrastructure Provider

The Challenge

Our client, a global market infrastructure provider with over $100B in assets under administration, set out to design tokenisation products for the asset management industry and its service providers.

While many proponents of tokenisation push for wholesale adoption of distributed ledger and blockchain technologies, our client recognised the need for a pragmatic approach and opted to meet users where they are—rather than where the technology could go. They aimed to release products that bridged traditional and decentralised finance (DeFi) models, allowing participants to adopt hybrid models for specific use cases and thus begin their digital transformation journey.

Although the client’s team had strong technical capabilities to build the underlying software, they knew that success would hinge on more than just code. They needed a partner with deep expertise in asset management operations, regulatory frameworks, and product strategy.

Citisoft was engaged to define the operating models, process flows, and commercial use cases that would make these tokenisation products viable in real-world scenarios.

The Project

Citisoft partnered with the client to navigate the complexities of bringing tokenisation products to market, guiding them through uncharted territory with strategic insight and operational expertise.

Joining the engagement mid-flight, Citisoft conducted a strategic review of the client’s initial tokenisation product. Through a series of workshops, functional demonstrations, and stakeholder interviews, we refined the product to support hybrid execution models—allowing traditional securities to be traded via broker-dealers and subsequently tokenised into unitised fund baskets.

As the project evolved, the client pivoted toward two new initiatives: tokenised distribution and tokenised collateral. We contributed subject matter expertise and project managed the early-stage design of both projects. This included defining the addressable market, validating user requirements, and designing end-to-end operating models that could be translated into technical development. 

Major Deliverables

• Regulatory Impact Assessment to support compliant fund operations in EMEA and APAC
• Functional and Non-Functional Requirements Documentation for platform enhancements
• Product Service Description, aligned with roadmap milestones and industry standards
• Target Operating Models, including exception handling and scenarios testing
• Process Flows and user lifecycle diagrams for both products
• User Stories to support agile development
• Client-Facing Presentation Materials to support business development and product education
• Draft Service Description and Project Plan

The Result

Citisoft’s involvement propelled the client to move beyond proof-of-concept and into commercially viable product development. Our work laid the foundation for three tokenisation products, each with committed client interest:

• A platform enabling the issuance, administration, and distribution of tokenised investments;
• A solution allowing users to transform funds into digital tokens without requiring changes to fund operations or structures;
• And a network facilitating the tokenisation of yield-bearing assets for use as collateral.

Without Citisoft’s expertise in fund operations and middle-office infrastructure, the client faced challenges in translating their technical vision into products that could be adopted by institutional users. By grounding the design in real-world asset management workflows and regulatory requirements, we ensured that the tokenisation products addressed actual market needs, not just technical possibilities.