Institutional Standard v2.0

TFIC Methodology

The governing principles and selection criteria for the global Tokenized Financial Instruments Classification standard.

Objectives Scope Governance Integrity Maintenance

Standard Objectives

The TFIC methodology was designed to address the critical need for standardization in digital capital markets. Much like the GICS (Global Industry Classification Standard) did for industrial sectors, the TFIC provides a dynamic taxonomy that allows financial institutions to aggregate, compare, and analyze instruments issued on DLT.

Strategic Vision

The TFIC is not an asset database but a logical framework that defines the "on-chain" DNA of a financial instrument through four hierarchical dimensions.

Technical Scope

The TFIC covers three fundamental instrument types:

Tokenized Financial Instruments (TFI): Traditional securities (Off-balance sheet or On-chain representation) represented by tokens.
Native On-Chain Instruments (NDI): Assets created and managed entirely on DLT infrastructure with no "off-chain" counterpart.
Programmable Financial Products (PFP): Instruments incorporating conditional execution logic (Smart Contracts).

Global Governance Model

The TFIC standard is governed by the DCM Core Institutional Steering Committee, ensuring independence, objectivity, and alignment with global financial stability mandates.

The Steering Committee

Responsible for the high-level roadmap and coordination with international standard-setting bodies (ISO, BIS Innovation Hub).

Strategic oversight of Level 1 & 2 categories.
Approval of cross-border interoperability protocols.
Mediation of classification disputes between institutional members.

Data Integrity & Selection

To maintain the institutional grade of the TFIC Registry, every instrument must meet rigorous data integrity requirements:

Legal Binding: On-chain tokens must have a demonstrated legal link to the underlying financial obligation.
Identifier Mapping: Compulsory mapping where applicable to ISIN (ISO 6166) or FIGI standards.
Infrastructure Verification: Assessment of the underlying DLT network's institutional readiness (Finality, Privacy, Resilience).

Maintenance Cycle

The standard operates on a continuous discovery model with fixed update windows:

Bi-Annual Review: Comprehensive updates to the Code Registry every June and December.
Public Consultation: 60-day window for industry stakeholders to submit new instrument type proposals.
Emergency Reclassification: Ability to update classification markers within 24 hours in case of systemic infrastructure shifts.

Classification Principles

Classification is based on the "Primary Economic Function" of the instrument rather than its specific technological infrastructure.

Principle of Mutual Exclusivity: An instrument can only belong to one Level 2 code.
Principle of Hierarchy: Each sub-type (Level 4) must fully inherit the properties of its parent class.
Protocol Agnosticism: The standard applies regardless of the protocol (Ethereum, Canton, Polygon, private ledger).