London, 5 November 2025 – Tokenovate, ;a UK-based fintech delivering post-trade lifecycle automation and digital settlement solutions, has launched the Novat, a programmable, settlement protocol for tokenised assets designed to unlock liquidity, reduce systemic risk, and streamline post-trade operations across global capital markets.
Today’s capital markets remain fragmented and slow, with liquidity trapped in complex custodial chains and reconciliation delays. The shift to T+1 settlement compresses post-trade timelines from days to hours, increasing pressure on firms that continue to rely on legacy workflows.
Yet even this shift stops short of solving the underlying structural fragmentation. Research shows that moving beyond T+1 to true T+0 settlement could cut exposures by up to 80% in stress scenarios, as compared with T+2.
The Novat Protocol eliminates this long-standing weakness in capital markets settlement by combining programmability with standardisation. It marks a structural shift in how capital markets operate. 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 modernisation.
Unlike other tokenisation initiatives, the Novat Protocol tokenises the act of settlement itself, synchronising asset and cash movements while introducing automation and legal finality.
The Novat Protocol is powered by the 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, the Novat ensures that every on-chain action reflects a clearly definedcontractual obligation. Supported by Tokenovate’s work with ISDA and FINOS, our 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, comments: “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 optimisation will define the next era of efficiency and trust in global finance.”
Ciarán McGonagle, Chief Legal & Product Officer at Tokenovate, said: “Tokenised 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 synchronisation layer, bridging legal, operational, and technical domains so hat settlement can occur deterministically, with the same certainty in law as in code.”
Stuart Davis, Global Co-Chair of FinTech at Latham & Watkins, added: “The Novat Protocol is an innovative bridge between traditional financial infrastructures and tokenised 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.”
For a detailed explanation of the Novat’s programmable, legal and operational design, please read our white paper here.
Source: “The Impact of Tokenised Settlement on Collateral Mobility and Systemic Risk in OTC Derivatives Markets” (link).
About Tokenovate
Tokenovate is a UK-based financial technology company delivering post-trade lifecycle automation and digital settlement solutions for derivatives and securities financing transactions. Built on the CDM, its platform bridges legal contracts, data and execution workflows to enable real-time, legally sound, and tokenised post-trade processes.
Learn more at www.tokenovate.com.
Source: https://coingeek.com/tokenovate-launches-the-novat-to-deliver-tokenised-settlement-in-capital-markets/
