Tokenovate announced it’s launched a programmable, settlement protocol for tokenized assets designed to unlock liquidity, reduce systemic risk, and streamline post-trade operations across global capital markets called Novat. Unlike other tokenization initiatives, the Novat Protocol tokenizes the act of settlement itself, synchronizing asset and cash movements while introducing automation and legal finality.
By aligning data, logic and legal record within one programmable layer, it lays the foundation for real-time liquidity, reduced systemic risk and the next phase of market modernization and is underpinned by the Fintech Open Source Foundation (FINOS) Common Domain Model (CDM), the industry’s shared data standard for representing financial products and events. By aligning legal contracts, trade data, and settlement workflows, Novat ensures that every on-chain action reflects a clearly defined contractual obligation.
Supported by Tokenovate’s work with the International Swaps and Derivatives Association (ISDA) and FINOS, the CDM-based automation engine transforms market standards into executable logic, enabling settlement to occur deterministically and transparently. Extending this capability to the point of settlement, the Novat Protocol delivers instant, atomic, and legally final settlement — all without altering existing custodial arrangements or market infrastructure.
Richard Baker, CEO of Tokenovate, said in a statement: “The move to T+1 in 2027 is progress, but it’s not the finish line. Markets can’t afford to wait two years, or two days, for liquidity to move. The Novat delivers what comes next: instant, atomic, and legally final settlement that releases liquidity the moment a trade completes and slashes operational risk. Crucially, it works within the system. It’s fully compatible with today’s custodial and regulatory frameworks. As markets get even faster, only solutions that combine legal certainty, settlement finality, and liquidity optimization will define the next era of efficiency and trust in global finance.”
Ciarán McGonagle, chief legal and product officer at Tokenovate, said in a statement: “Tokenized settlement requires more than faster technology. It requires a shared legal and data standard. The Novat Protocol provides that foundation, translating contractual obligations into executable logic while preserving the custodial and legal frameworks that underpin market trust. It acts not as a parallel infrastructure but as a synchronization layer, bridging legal, operational, and technical domains so that settlement can occur deterministically, with the same certainty in law as in code.”
Stuart Davis, global co-chair of FinTech at Latham & Watkins, said in a statement: “The Novat Protocol is an innovative bridge between traditional financial infrastructures and tokenized settlement that is designed to marry the concept of trusted atomic settlement with the existing custodial systems for recording the ownership and transfer of assets, unlocking otherwise trapped liquidity and reducing settlement exposure. Congratulations to the Tokenovate team on the launch of a groundbreaking protocol.”