Reimagine finance
Digital assets, powered by blockchain technology, have the potential to reshape the very fundamentals of how the asset management, alternative investment and banking industries operate. Digital assets can uncover opportunities, enable disintermediation, increase liquidity, and streamline both data and reconciliation.
Blockchain technology has disruptive elements along the entire value chain. Processes can be made leaner thanks to the automation of activities. Those currently performed with the involvement of intermediaries, such as settlement and clearing, are currently complex, time-consuming, and inefficient. Using blockchain as an underlying technology standard promises to bring disintermediation, shorter transaction times, greater transaction security and lower costs thanks to a single source of truth.
The global market has realized that the innovative force of digital assets will permanently change the financial industry. Increased regulatory certainty will also lead to greater investment in the necessary infrastructure and in market entry. European banks and asset managers will have to explore their own strategic market position and new innovative players will enter the market.
One of the largest digital assets teams in Luxembourg
With more than 30 professionals dedicated to digital assets, our team is at the forefront of financial technologies and can assist you in navigating the complexities surrounding these products. KPMG is a leader in this space, disrupting the professional services market through strategic partnerships that allow us to build end-to-end solutions. Our professionals provide advisory, tax and audit services across the ecosystem of digital assets, from asset managers to asset servicers as well as financial institutions and family offices.
A message from our Head of Alternative Investments
Embark in the digital assets revolution.
At KPMG, we believe that digital assets powered by blockchain are the foundations of a new financial infrastructure. The capacity of these technologies to create disintermediation and economies of scale should be an important vector of growth of the Alternative Investments industry.
Christophe Diricks, Head of Alternative Investments, KPMG Luxembourg
- Crypto Assets
- Tokenization
We understand your digital asset and blockchain challenges
- Digital assets are complex from a conceptual and regulatory perspective. In addition, regulations surrounding digital assets are constantly evolving. This makes it difficult to adopt a result-driven approach.
- Though you may see digital assets and blockchain as the next disruptive financial technology, you may not fully know to what extent they would benefit your business and how they would transform your business model.
- Implementing blockchain technology may lead to a decrease in costs and increase your firm’s competitive advantages. However, this transformation requires high investments and technical skills. It is hard to quantify the amount of investment required for an infrastructure transformation towards blockchain; and what would be the return of such transformation.
- It’s difficult to account for all the dimensions that would be affected by a tokenization project. Few solution providers can coordinate the project from an advisory, regulatory, tax, legal and technical perspective.
How we can help you
We help you seize the opportunities of the new digital economy, relying on strategic, technical, and analytical skills. Having the largest team dedicated to digital assets and blockchain in Luxembourg, we have the capacity to provide you with tailored, best-in-class advice. With our network and strategic partnerships, we are the one-stop shop for all your digital assets and blockchain related projects.
- We deep dive into the specifics of these new technologies and assess the needs and the ways you can leverage their benefits to increase your market position and your competitiveness. We assess the impact of new decentralized web technologies (KYC, Custody, Transfer Agent function, Clearing & Settlement, encryption technologies, Self-Sovereign Identity, etc.) to help you anticipate developments that will lead to added value for your company.
- We study your project in detail and frame it functionally and technically, allowing you to clarify expectations and reduce the risks and costs associated with each stage of development:
- Functional framework: Workshops with business teams, definition of functional specifications.
- Technical architecture: Analysis of the relevance of the blockchain, comparison of protocols, estimation of associated costs.
- User experience: Proposal of graphic charters, user paths and models.
- We are committed to full transparency: our teams do not develop unrealistic blockchain projects. We don't push blockchain if it's not relevant to your project.
We help you develop a strategy so you can benefit from the opportunities offered by blockchain and digital assets
Benchmarks
Market studies of blockchain/digital asset solutions
Opportunity studies
Analysis of the potential of a project and the relevance of a blockchain/digital asset in this context
Tailor-made workshops
Identify use cases adapted to your organization or deepen use cases which are already identified
We increase your credebility by ensuring constant compliance
In a constantly evolving legislative framework, we ensure the compliance with the rules and anticipate any obstacles to the growth of your activity.
- Licensing
- VASP authorization
- MIFID Licensing
- Payment Institution Licensing
- Regulatory
- Regulatory assessment
- Prospectus
- Ad-hoc support
- Tax reporting
- DAC 7 & DAC 8
- FATCA
- CARF
- Risk Advisory
- Wallet management
- Custody
- KYC/AML
- Whitelisting management
- Management consulting
- Business Plan
- Platform assessment
- Fundraising support
We increase your competitiveness with tailored assistance
As the tokenization sector attracts more players than ever before, implementing an efficient fund vehicle is critical to increase your competitiveness and catch investors' attention. We assist you in the whole lifecycle of your projects.
- Tax structuring
- Identification of the SPV according to the fact patterns of the project
- Set-up of cash repatriation and exit strategies
- Implementation services
- Incorporation of the vehicle
- Corporate documentation
- Drafting of Terms & Conditions
- Corporate & Accounting
- Tax compliance
- Financial statements
- Domiciliation
- Regulatory oversight
- Licensing
- Regulatory approvals
- Reporting
- Projet Management
- Tokenization advisory
- Digital Assets strategy
- Digital interface designing
Industries
- Tokenization
- Banking
Tokenization as a value chain disruptor
What is Tokenization?
Tokenization is a rapidly developing area in the financial industry which enables investment in the form of digital tokens backed by real world securities or assets. While traditional investments involve multiple intermediaries, high costs and poor liquidity, tokenization as an emerging technology tackles these challenges by:
- Allowing economies of scale with disintermediation by gathering the distribution, clearing and settlement, transfer agent and custody functions.
- Increasing liquidity from an asset management and a fund distribution standpoint by creating secondary markets, thus facilitating exit and entry strategies.
- Allowing the management of larger investors pools due to automation powered by smart contracts.
Forward thinking solution
Wherever you are in your tokenization journey, KPMG can provide insights and guidance through every phase. This includes:
- Roadmap and implementation strategy
- Advice on current and future regulatory frameworks and structuring possibilities
- Vendor and platform assessment
- Assisting in the Business Model definition
- Addressing Tax implication of your project such as structuring, reporting and compliance
- Audits
- Performing financial statement audits
- Custom-made services
Liability side
Assets side
A new age of digital currencies and decentralization
The appearance of new digital currencies such as stablecoins and an alternative financial system materialized by Decentralized Financed (so called “DeFi”) questions the economic models of banks and the barriers to entry into the banking industry. These emerging technologies also give way to tremendous innovation opportunities.
Beyond the opportunities for optimizing internal information systems, blockchain and digital assets are increasingly appraised by the Banking industry, which promotes their utilization. In the United States, more than a third of asset managers are exposed to digital assets.
Our role is to help financial players prepare for a world in which currencies and assets will be natively digital, programmable, easy to issue and far more numerous than today.
Our Digital Assets team could assist in all dimensions of your projects and help you navigate the complexities of these emerging technologies, notably by:
- Managing customers who want to transfer funds from his Security Token Offering
- Assessing the legal value of the blockchain for the certification of financial information
- Managing blockchain clearing houses
- Tracking the status of a cryptocurrency or token
- Preparing for the arrival of stablecoins
- Managing a cryptocurrency portfolio
- Meeting reporting obligations
