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.

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

Risk Advisory

Wallet management
Custody
KYC/AML
Whitelisting management

Regulatory

Regulatory assessment
Prospectus
Ad-hoc support

Management consulting

Business Plan
Platform assessment
Fundraising support

Tax reporting

DAC 7 & DAC 8
FATCA
CARF

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.

Regulatory oversight

Licensing
Regulatory approvals
Reporting

Implementation services

Incorporation of the vehicle
Corporate documentation
Drafting of Terms & Conditions

Projet Management

Tokenization advisory
Digital Assets strategy
Digital interface designing

Tax structuring

Identification of the SPV according to the fact patterns of the project
Set-up of cash repatriation and exit strategies

Corporate & Accounting

Tax compliance
Financial statements
Domiciliation

Industries

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

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Assets side

Banking

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