Settlemint and Utila partner on tokenized asset custody controls
Settlemint and Utila have signed a collaboration agreement to combine tokenization lifecycle tools with MPC custody, aiming to help banks move digital asset projects into production.
Key points
- Settlemint's Digital Asset Lifecycle Platform will be combined with Utila's self-custodial MPC custody and governance controls.
- Settlemint CEO Adam Popat said issuance is usually the simplest part of a tokenised asset programme.
- Utila co-founder Bentzi Rabi said agent-requested transactions must pass automated policy filters before signing.
- Transactions above set thresholds pause for human approvers or co-signers to meet approval quorums.
- The firms will initially target Asia-Pacific deployments, regulatory sandbox pilots and product demonstrations.
Settlemint and Utila have partnered to tackle a key operational bottleneck for financial institutions moving tokenized assets from pilot projects into production, Bitcoin.com News reports. The enterprise blockchain platform and the digital asset infrastructure provider signed a collaboration agreement to combine Settlemint's Digital Asset Lifecycle Platform with Utila's secure custody and governance controls.
The two firms say the deal addresses a growing operational gap in institutional digital assets, where issuing a token is only the first step in a multi-stage asset lifecycle. As banks, financial technology firms and market infrastructure providers prepare to deploy regulated digital assets at scale, operational security and automation have become important differentiators, according to the report.
Regulated financial instruments need more than simple token creation, the article states. They require self-custodial multi-party computation wallet infrastructure to remove single points of failure, along with multi-chain connectivity, strict regulatory enforcement and continuous support across issuance, servicing, corporate actions and eventual maturity or redemption.
Bridging the gap to production
Settlemint chief executive Adam Popat told Bitcoin.com News that issuance is usually the simplest part of a tokenised asset programme. He said the operational complexity begins once the asset is live, when a bank must manage distributions, redemptions, clawbacks, approvals and the audit trail around each event.
Popat said combining Utila's self-custodial MPC wallets and policy controls with Settlemint's platform creates a unified framework where transactions are automatically verified against an institution's access rules before signing. Corporate actions such as scheduled yield distributions and simultaneous payment-and-asset redemption settlements can then run under a single governance environment.
A key focus of the partnership is reducing operational risk as institutions deploy autonomous software agents for dynamic liquidity balancing, automated treasury operations and cross-border payments. Utila co-founder and chief executive Bentzi Rabi explained that MPC architecture enforces strict boundaries on artificial intelligence systems, with every agent-requested transaction passing automated policy filters before signing.
Controls for AI workflows
For actions above automated thresholds, transactions pause until human approvers or specialised co-signers meet configured approval quorums across designated departments. Settlemint and Utila plan joint commercial work across global markets, starting with the Asia-Pacific region, including institutional client deployments, product demonstrations, regulatory sandbox pilots with financial authorities and market education on institutional asset tokenization.