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.
NEM Partners With VNX Exchange on Security Token Protocol
The crypto exchange platform VNX has made a significant announcement this week regarding the development of a new security token protocol. Company executives announced a partnership with the decentralized application platform NEM. The two crypto firms seek to bridge the gap between the crypto economy and traditional financing firms.
The partnership is geared towards creating and funding a wave of new security tokens based on the NEM blockchain. NEM recently made headlines for its power to cultivate productivity after becoming the token launch platform chosen by the blockchain-based Publish platform. The platform is a joint venture between TokenPost, the largest blockchain news media outlet in Korea, and the blockchain consulting group Kchain.
In a recent interview with Cryptoninjas.net, Alexander Tkachenko, the CEO and Founder of the VNX Exchange speaks on the new opportunities the partnership will bring to the market. He spoke on the importance of creating a worldwide security token ecosystem to increase access to traditional VC markets. He also touched upon the advancements that blockchain technology brings to financial markets globally.
Alexander wasn’t the only company executive to praise the partnership. Kristof Van de Reck, the Interim President of the Nem.io Foundation also discussed the opportunities gained from the venture. He explained how the connection was essential to bridging the gap between the mainstream financial industry and the growing cryptomarket. He also discussed how NEM is excited to delve into the security token sector.
VNX specializes in venture capital. The platform currently hosts $169 billion in yearly VC investments. These investments span the gambit of Fintech with over 10,000 startups funded yearly. VNX executives understand that over 80% of research and development conducted by major companies requires VC funding. VNX seeks to open the VC process up to new investors through the integration of blockchain protocols.
NEM is considered a fourth-generation blockchain application platform. The platform offers users a combination of flexibility and scalability which is far ahead of many blockchain launching platforms. NEM utilizes a unique consensus mechanism called Proof of Importance. The Proof of Importance protocol eliminates many of the problems found in both Proof of Work systems and Proof of Stake protocols.
The NEM protocol prioritizes accounts through the use of a proprietary algorithm. Each account receives a rating not based on their computing power such as Proof of Work systems. It also avoids the downfalls of Proof of Stake systems by not prioritizing accounts based on their holdings.
NEM and VNX Ready for the Future Cryptomarket
Security tokens continue to gain popularity. These coins combine traditional financial system requirements with the ease-of-use and efficiency of blockchain technology. This latest partnership signals an increased push in this direction by major blockchain firms.
This year has already seen a myriad of new security token protocols emerge in the marketplace. Blockchain firms such as Polymath, Securrency, and Harbor all have entered their protocol into the security token race. Considering the tremendous amount of capital that these firms are unlocking, you should expect to see this trend continue in the coming months.
Binance to Open Security Token Trading Platform in Malta
Security token advocates have much to celebrate this month. The crypto giant Binance announced a strategic partnership with the Malta Stock Exchange to develop a new blockchain platform. According to local news agencies, Binance seeks to establish a security token exchange and decentralized bank within the country. Considering that Malta is one of the best locations in the world for blockchain start-ups, the maneuver makes a lot of sense.
News first came of the partnership via a press conference directly following the signing of a memorandum of understanding. Malta Today reported that in discussing the agreement, Malta’s Finance Minister, Edward Scicluna called blockchain “revolutionary.” He went as far as to say Malta would be “crazy” not to increase their stance in the crypto space.
Malta made headlines in July of this year when the Maltese Parliament passed a law that set regulatory framework in place for cryptocurrencies. Scicluna is a considerable cryptocurrency advocate. He admits the technology fits perfectly into Malta’s smaller economy. The favorable legislation allowed blockchain investments to soar in the country.
Binance New Platform
As a security token exchange, Binance’s new platform must meet specific requirements including KYC and AML regulations. The new platform will incorporate many features from the existing Binance exchange platform. Binance is one of the most successful cryptocurrency exchanges of all time. Currently, the exchange is the largest in the world regarding trading volume.
Binance developers managed to resist instituting KYC protocols into their platform to date. Currently, anyone can register for an account and withdraw up to two Bitcoin daily, semi-anonymously. The ease-of-use of the platform and the wide variety of altcoins helped Binance gain dominance in the market.
Many in the cryptospace wondered what Binance’s next move would be, in the face of growing regulations. It now appears that the exchange is ready to step into the security token sector in a significant way. This move also signals a continued effort to keep the original Binance platform out of the security token sector.
Binance and Malta continue to grow closer ever since the company opened a new office in the country in March. Binance officials seek to create a fiat-to-crypto exchange within the state as well. Fiat-to-crypto exchanges require users to meet many of the same requirements found with security tokens. These regulations include verifying your identity.
Binance and Malta’s love is just getting started. In July, Binance invested in the Founders Bank in Malta. Bank officials want a blockchain-based protocol to replace their current system. The bank wants to be among the first decentralized banks in the country.
Malta’s Crypto Passion
The Malta Stock Exchange sees the growth potential in the security tokens sector, and they are ready to position the country correctly for large-scale adoption. Already, this small country managed to acquire a significant portion of the blockchain industry. These latest developments will surely attract more blockchain investment dollars to the region.
Neufund Announces Partnership with Blocktrade
The popular European-based security token issuance platform Neufund announced a strategic partnership with the crypto exchange Blocktrade this week. Neufund specializes in tokenization of real and digital assets. The firm was among the first EU-compliant tokenization platforms to enter the space. Today, the platform hosts multiple legally-binding security tokens.
This latest partnership with Blocktrade is meant to increase liquidity for Neufund token users according to the platform’s developers. The connection is the most recent of many new agreements Neufund cemented in the last few months. To date, the firm announced partnerships with Binance, BitBay, and the Malta Stock Exchange.
Neufund announced six upcoming security token offerings which they will issue in the coming months. These STOs include Uniti, mySwoop, Brille24, Next Big Thing, Emflux Motors, and Blockstate. The platform’s developers also announced plans to host their own STO sometime this year.
Zoe Adamovics is the co-founder and CEO of the Neufund project. In a recent interview, Zoa explained how the Blocktrade partnership came about. Both firms share a common goal of tokenizing “real world assets, including private equity.” She also spoke briefly on the differences between issuing security tokens and enabling secondary trading.
Zoe believes that her firms focus on the latter will help Neufund gain traction in the space. The young Co-founder and CEO is no stranger to the blockchain, and currently, she travels the globe promoting the advantages provided by security tokens. Her last seminar was hosted in Berlin earlier in the month, with great success.
Neufund’s CEO wasn’t the only company executive to praise the deal. In a public statement Blocktrade’s CEO Luka Gubo spoke on the importance of creating a security token ecosystem. He explained that this development is essential to provide the growing security token sector with more opportunity. He also discussed his admiration for Neufund’s fully regulated approach to the market.
Blocktrade entered the market earlier in the year amid growing interests in regulated cryptocurrency tokens. The platform registered as a security token exchange this year. While still in its development stages, Blocktrade submitted for their Multilateral Trading Facility license earlier in the year. The platform also provides enterprise-level tokenization options.
Security Token Issuance Platforms
Security token platforms continue to enter the cryptospace to accommodate for the rising public interests in these newly regulated coins. Platforms such as Polymath, Securitize, Swarm, and Securrency all offers businesses an easy way to tokenize their assets similarly to Neufund.
Despite the growing competition in the market, Neufund offers users a comprehensive security token experience. By providing access to the secondary markets, investors gain confidence in their ability to liquefy their assets. This strategy could help Neufund secure a position as the top EU security token issuance platform.
A More “Secure” Crypto Future
Many in the crypto space see the development of security tokens as the next logical step in the cryptomarket’s progression towards large-scale adoption. Platforms such as Neufund help to bridge the gap between the cryptomarket and traditional investment firms. Its safe to say that the security token space is just heating up.
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