The Philippines-based security token exchange CEZEX announced plans this week to extend their services into Hong Kong. The decision would make CEZEX the first security exchange to offer regulated security token trading in the country. Hong Kong has seen significant growth in their crypto sector ever since mainland China closed all their local exchanges and banned initial coin offerings late last year.
The company behind CEZEX, Inbase Partners, is based out of Taiwan. The company first received licensing from the Cagayan Economic Zone Authority (CEZA) earlier in the year. CEZA is responsible for dictating financial regulations in the Philippines special economic zone located in Luzon.
The deal was made possible through a strategic partnership with numerous local Hong-Kong broker-dealers. These partnerships will allow CEZEX to remain fully compliant with their exchange platform. Company executives stated that the project would digitize the existing financial system. The main difference being that instead of securities, the platform will handle blockchain-based security tokens.
Tokenization on the Rise
CEZEX company officials seek to tokenize large portions of the traditional economy. In a recent interview, company executives explained that they have plans to begin tokenizing stocks, bonds, and even real estate over the coming months. To accomplish such a monumental task, CEZEX has sought out the assistance of multiple brokerage firms.
CEZEX Company executives desire to create a new platform which offers more liquidity than current traditional-style security exchanges. This strategy will build a network of multi-asset class brokers. Traditionally, brokers only handle single asset classes. Currently, security token holders have little options in regards to trading their holdings. The last few months have seen multiple platforms enter the cryptospace to fill this void.
Hong Kong Wants In
The Hong Kong Securities and Futures Commission (SFC) documented increased adoption in the cryptocurrency markets. These rising interests have pushed the committee towards more crypto-friendly options. This latest development signals an embracing of security tokens by the SFC.
Security Tokens Receive the OK
Security tokens are designed to meet the stringent requirements adhered to by traditional financial institutions. These requirements can include following strict know your customer (KYC) and anti-money laundering AML laws. Both of these laws require individuals to reveal their true identity before participating in the market.
Inbase Partners is a digital asset advisory firm. Their primary focus is on secondary trading and fundraising for digital asset-related projects. The company entered the market in 2014 and had seen considerable success since its debut. Inbase Partners is best known for their contributions in the Fintech and venture building sectors of the Philippines.
The Future is Secure
Security tokens continue to gain popularity among traditional investors for numerous reasons. These tokens provide investors with a more secure alternative when compared to conventional crypto investments. CEZEX is wise to position their platform before large-scale security token adoption. The move could place the firm in the perfect spot to handle this growing market trend.
TokenMarket to Host Security Token Offering
In a recent announcement, TokenMarket indicated that they will be hosting an upcoming security token offering. This event will take place on their own issuance platform, under the watch of the Financial Conduct Authority. The fundraising event will see the company strive to sell £10 million worth of digital securities to accredited investors. TokenMarket indicates that this represents their Series A, and that all past endeavours and growth have been achieved through self-funding.
The reason for hosting an STO is due to the recognition of the impending digital securities boom. TokenMarket wants to be well poised for the future of the rapidly growing industry. By raising these funds, they will ensure that their development and expansion keeps place with the market.
This STO comes less than a year after being accepted by the UK’s Financial Conduct Authority. This governing body will act an oversight role, ensuring compliance with existing rules and regulations that pertain to digital securities.
Multiple representatives from TokenMarket spoke on the use of blockchain, and their very own security token offering.
Ransu Salovaara, CEO & Cofounder of TokenMarket, stated,
“Europe has markedly failed to match the prowess of the US in nurturing technology champions that drive innovation, economic growth, and job creation…At the same time, everyday investors are often shut off from exciting investment opportunities. We firmly believe that STOs will help to solve this dilemma by democratising access to finance whilst providing the same investor protections as traditional securities.”
Mikko Ohtamaa, CTO & Cofounder of TokenMarket, stated,
“We believe we have constructed a fully compliant yet non-custodial, blockchain-based platform that helps early-stage companies raise funding while potentially giving investors earlier liquidity.”
TokenMarket identifies as the most established issuance platform throughout Europe. Operating out of Gibraltar, the company has managed to grow into what they are today, since being founded in 2016.
Financial Conduct Authority
Known as a ‘Conduct Regulator’, the Financial Conduct Authority oversees almost 60,000 financial services within the UK. Above all, this role entails that the FCA ensures markets operate with honesty and transparency. This is done with the goal of providing a fair market for all industry participants.
The FCA has been in operation since 2013.
In Other News
While the TokenMarket STO marks a first under the watch of the FCA, TokenMarket has, in the past, assisted various companies with their own funding campaigns. These efforts have seen over £240 million raised in only two years.
The following article details another company poised to benefit in the near future, from the services and experiences offered by TokenMarket.
SPiCE VC Continues Portfolio Expansion with InvestaCrowd
The SPiCE VC portfolio continues to grow. The trendsetting company has recently announced that they have invested in InvestaCrowd.
Through this investment, SPiCE token holders will now gain exposure to the growing InvestaCrowd. A digital securities platform that operates under a licence given by the Monetary Authority of Singapore. The goal of InvestaCrowd is to not only provide services as an issuance platform for digital securities, but to develop a trading exchange. The development of an exchange is key to achieving the oft touted liquidity that digital securities stand to offer investors.
With this news, the SPiCE VC portfolio now totals 11 promising companies. The following is a list of these projects.
- Crypto & Derivatives
As made obvious by this list, SPiCE VC is comprised of both promising start-ups and heavy hitters within the burgeoning digital securities sector.
The following was a statement made in the press release, regarding the inclusion of InvestaCrowd into the SPiCE VC portfolio.
Tal Elyashiv, Co-Founder of SPiCE VC, stated,
“We are excited about this investment and the partnership with InvestaCrowd. As one of the leading investment banking platforms, and in light of the strong expected growth in tokenizing assets through Digital Securities, InvestaCrowd is set to be one of the fastest growing platforms in the region.”
InvestaCrowd is a Singaporean company, which was founded in 2015. They market themselves as the leading digital securities platform within Asia. They have accomplished this by offering not only the issuance of digital securities, but promise of eventual secondary market trading as well.
SPiCE VC is a venture capital fund tailored towards companies in the blockchain industry. Led by Carlos Domingo, Tal Elyashiv, and Ami Ben-David, SPiCE was one of the first in the world to successfully complete their own digital security offering.
The aforementioned DSO took place in the tail end of 2017.
In Other News
Here are a few articles detailing recent events in the world of digital securities. Of note, is a recent article detailing the very same SPiCE VC discussed here today.
REMCO Software to see Security Tokens Listed on LATOKEN
REMCO Software is in the midst of completing a ‘security token offering’. As you may know, this refers to a crowdfunding campaign tailored towards accredited investors. During the offering, investors are able to purchase digital securities in the form of a token, typically representative of equity shares within the issuing company – an efficient merger of traditional and future finance.
Recently, REMCO announced good news, as they have secured an agreement that, once issued, will see their tokens listed for trading on the LATOKEN platform. By providing a flexible listing platform, LATOKEN will enable investors to easily trade between REMCO tokens and FIAT currencies. The ability to do so is expected to result in new-found levels of liquidity, not normally witness when dealing with such assets.
In their press release, representatives from both REMCO and LATOKEN spoke on the agreement, and what it means for the industry.
“We are especially pleased to welcome REMCO token in the pool of our future projects. Their business model is both practical and very innovative. It brings a great deal of added value to the industry.”
“LATOKEN’s innovative approach appealed to us…There are many crucial steps to getting this business off the ground, and we appreciate reaching this milestone with LATOKEN.”
REMCO is a young company looking to revolutionize the remittance industry. They intend to do so, by utilizing traits inherent to blockchain technology that will allow for greater transparency and efficiency in finance. They were founded in 2018, and are based out of Laurel, Maryland.
Company operations are currently spearheaded by CEO, Peter Ojo. Under his watch, the company hopes to successfully complete a security token offering, which will facilitate their envisioned future.
LATOKEN refers to ‘Liquid Assets Platform’. Founded in 2017, CEO, Valentin Preobrazhenskiy, has guided the platform into becoming a promising player within the industry. As their name implies, the platform aims to bring liquidity to a variety of assets. Through their FIAT gateways, they have now begun to attract the attention of companies, such as REMCO.
In Other News
While this is the first time that each of these companies have graced our headlines, there is no shortage of news in the industry. Here is a brief look at a few articles detailing recent partnerships, and industry developments.
- Malta AI & Blockchain Summit handing out 100 free booths to startups
- London’s Blockchain Conference; Blockchain Expo Global Exhibition announces expert speakers
- South East Asia’s Mega Blockchain Conference – Interview
- Malta AI & Blockchain Summit throwing massive show in May, 2019
- 2019 Blockchain Convergence Summit : Chain Plus+ Kicked Off with Great Fanfare… Attended by All Major Blockchain Investors
- TokenMarket to Host Security Token Offering February 16, 2019
- SPiCE VC Continues Portfolio Expansion with InvestaCrowd February 16, 2019
- Globex Licences ATS Platform to First Growth Funds Limited February 15, 2019
- REMCO Software to see Security Tokens Listed on LATOKEN February 15, 2019
- Magic BlockchainQA to Collaborate with Securitize February 14, 2019