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Tokenized securities are not a shipped product. The one confirmed capability today is tokenizing securities held on the general ledger through the Jack Henry integration described below. Everything beyond that is directional. Contact our team at sales@cosmoslabs.io to discuss a specific instrument or workflow.
The securities use case is the asset class closest to tokenized deposits in the Cosmos Tokenization Suite (CTS). The bank already carries the tokenized position on a system it operates. The complications come from the instrument’s restrictions and the events it generates over its life.

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Securities on the general ledger

The Jack Henry integration is not limited to deposits. Securities held on the general ledger can use the same ledger sync mechanism as deposits: the position stays on the core and is mirrored to the digital ledger. This mechanism places securities and tokenized deposits on the same digital ledger. A securities leg and cash leg can settle against each other without either asset leaving the bank’s books. This is the purpose of delivery versus payment. See Jack Henry for the integration and Delivery vs Payment for settling the two legs.

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Why the architecture suits the wider case

The properties supporting general ledger securities are not specific to Jack Henry:
  • The core stays the register of record: the position is mirrored instead of migrated, and reporting continues against its current system. See Banking Core Integrations.
  • The cash leg is already on the ledger as a tokenized deposit. This makes atomic exchange possible without requiring reconciliation between two settlements. See Atomic Settlement.
  • The bank’s existing compliance, risk, and policy systems govern activity through the policy and logs interface. Instrument-level eligibility and restriction checks belong there. See Components.
  • Reaching a counterparty is a message between two ledgers over IBC. No intermediary takes custody of the security in transit. See Inter-Blockchain Communication.

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What a securities product would still need

Three instrument-specific requirements separate the general ledger case from a securities product:
  • Transfer restrictions enforced at transfer time, covering investor eligibility, lock-ups, jurisdiction, and holding limits
  • Lifecycle events, including coupon and dividend payments, corporate actions, maturity, and redemption
  • Connectors to whichever register is authoritative for the instrument, which for most securities is a custodian or a central securities depository rather than the bank’s own core
The security types in scope for the Jack Henry integration still need to be documented. The setup required to tokenize a general ledger position also needs to be documented.

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