Tokenovate launches Novat for instant, legally final asset settlement

By Vriti Gothi

Tokenovate, a UK-based FinTech specialising in post-trade lifecycle automation and digital settlement solutions, has launched Novat, a next-generation programmable settlement protocol for tokenised assets. Designed to transform capital markets infrastructure, the Novat aims to unlock liquidity, mitigate systemic risk, and enable frictionless post-trade operations worldwide.

In today’s capital markets, inefficiencies persist across fragmented systems and complex custodial chains. Liquidity often remains trapped, while reconciliation delays continue to slow down settlement cycles. Although the transition to T+1 settlement represents progress, it has also intensified operational pressure by compressing timelines from days to hours leaving legacy workflows struggling to keep pace.

Research shows that advancing from T+1 to true T+0 settlement could reduce counterparty exposure by up to 80% in periods of market stress compared to T+2. The Novat Protocol directly addresses this structural challenge by introducing a programmable and standardised settlement layer that aligns data, logic, and legal records in a single framework. This architecture enables real-time liquidity movement, minimises systemic vulnerabilities, and paves the way for the next phase of market modernisation.

At the core of the Novat Protocol lies the FINOS Common Domain Model (CDM) , the industry’s open standard for representing financial products and events. By harmonising legal contracts, trade data, and settlement workflows, Tokenovate ensures that each on-chain action corresponds to a clearly defined contractual obligation. Backed by the company’s collaborations with ISDA and FINOS, the CDM-based automation engine translates market standards into executable logic, allowing settlements to occur deterministically and transparently.

Richard Baker, CEO of Tokenovate, said, “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.”