The innovative minds behind the ABE Global security token exchange believe they found a way to reduce IPO costs for companies significantly. The firm initially made headlines last August after securing $3 million in seed funding from investors. Now it appears development on the next level security token exchange is underway.
Based out of Malta, ABE Global’s team is on a mission to improve the trading experience for all parties involved. The platform incorporates a host of new technologies to enable a more secure and efficient trading option including distributed ledger technology and advanced tokenization protocols.
ABE Global differs from other security token exchanges in a number of ways. Firstly, ABE Global will offer more than just tokenized securities. Instead, the platform deals with many financial products including depository receipts. Depository receipts represent securities of a foreign company that trades on the US markets. These are what many non-US companies trade because it makes trading foreign securities a much easier process.
The ABE Global Network
Additionally, the ABE Global platform will function uniquely in that it will connect multiple global locations but utilize Malta as the main exchange. To accomplish these tasks, ABE’s American and Asian branches will offer tokens representing Malta depository receipts. The strategy is new to the market. If successful, ABE Global could open up the global securities market in ways previously not possible.
Discussing the platform’s advantages, CEO John Pigott explained the progress achieved so far. According to Pigott, the firm awaits licensing approval in Malta. The platform will feature 24/7 trading and support. Also, Pigott took a moment to describe the types of products the platform will list. These products include tokenized securities, stocks, bonds, and a wide variety of other “financial instruments.”
ABE Global plans to utilize their US-based subsidiary ABE Americas to offer services in the US. Discussing the matter, developers stated that in the US tokenized securities have slightly less regulatory requirements when compared to traditional securities. This lack of regulation is found mostly in the secondary markets.
Legal Hurdles on The Horizon
ABE Global will push the legal boundaries of depository receipt use farther than ever before. Consequently, this strategy requires the SEC to sign off on the plan. According to Margaret N. Rosenfeld of K&L Gates Law, the project presents an exciting “legal puzzle” and is certainly doable. In a recent interview, she explains how the process would need to proceed moving forward.
ABE Global’s innovative approach to global securities is sure to have a ripple effect in the market. This platform could greatly reduce the entry cost for businesses seeking crowdfunding options. Additionally, the platform opens up the securities market to new investors. You should watch this project carefully over the coming months as development continues.
SIX Acquires Stake in daura – SDX Exchange
A Strategic Advantage – SDX Exchange
Boerse Stuttgart Subsidiaries to Benefit from Investment by SBI Holdings
It is fair to say that SBI Holdings has decided to go all-in on blockchain based endeavours as of late. This has been made evident through various high profile investments. The most recent of which include Ripple, Securitize, and now Boerse Stuttgart – the latter of which we will discuss here today.
In an effort to usher in higher levels of adoption surrounding digital securities, SBI Holdings has invested in multiple branches of the Boerse Stuttgart group.
- Boerse Suttgart Digital Exchange
- Boerse Stuttgart Digital Ventures
Plans Moving Forward
In their announcement, it is clear that the rationality behind this new partnership is geared around global expansion. With SBI Holdings operating within Japan, and the various branches of the Boerse Group operation throughout Europe, the pair should find the partnership mutually beneficial.
Beyond simple expansion, the pair of companies closed out their announcement by elaborating on their plans. They stated,
“The SBI Group and the Boerse Stuttgart Group are partners in the digital asset business in Asia, including Japan, as well as in Europe. We will work together to build a global digital asset finance ecosystem utilizing blockchain.”
Upon announcing these investments, representatives from each, SBI Holdings and Boerse Stuttgart, took the time to comment. The following is what each had to say on the matter.
Yoshitaka Kitao, CEO of SBI Holdings, states,
“Due to the decentralized nature of digital assets, it is our top priority to find globally suitable partners to build our digital asset ecosystem. The SBI Group, with its trading platform for digital assets and other relevant companies, will make full use of the cooperation with the Börse Stuttgart Group to respond to the global customer interest in digital assets.”
Alexander Höptner, Chairman of the Management Board of Boerse Stuttgart GmbH, states,
“Asia and Europe are currently the fastest growing markets for digital assets. With the SBI Group, we have found an ideal partner to realize our vision of an efficient, global ecosystem along the value chain of digital assets. In addition to the exchange of knowledge and technology, the collaboration also covers the issuance, listing and trading of digital assets across borders, as well as brokerage services and building the first global bridge for custody.”
The Boerse Stuttgart Group consists of various branches such as Boerse Stuttgart Digital Exchange, and Boerse Stuttgart Digital Ventures. These two branches, in particular, have a focus on blockchain based endeavours, including the eventual creation of a secondary marketplace for digital securities.
An acting subsidiary of SBI Group, SBI Holdings, was launched in 1999. The company maintains headquarters within Tokyo, Japan, where they seek out, and establish, strategic partnerships with high potential companies.
CEO, Yoshitaka Kitao, currently oversees company operations.
In Other News
In recent months, each of the companies discussed here today have found themselves in our news feed. Whether launching a digital exchange, or making strategic investments, both companies have been quite active. The following articles are just a couple discussing recent moves by both.
DX.Exchange Goes Bankrupt – CX Technologies Ltd
Additionally, a host of suppliers have taken suit against the company. These suits run the gambit from unpaid bills to the alleged fraud. The well-known cybersecurity firm, White Hat Ltd is one of the company’s claiming losses due to DX.Exchange actions. Another lawsuit lists Bee2See Dotan B.S. Solutions. This is the firm that handled DX.Exchange targeted marketing. Even the company supplying the servers never got paid – Malam Team.
Writing on the Wall – DX.Exchange
Employees and suppliers knew to take action earlier in the month after the firm closed its doors unexpectedly. At the time, DX.Exchange owner Pinhas Patarkazishvili cited the rising costs and dwindled profits the exchange had left. He told employees that he was searching for a merger or acquisition and if that he was unsuccessful, the company would permanently cease operations.