Horizon Globex is a next-gen tokenization platform that continues to make headlines for its advantageous approach to the market. The platform functions as a “one-stop shop” for businesses interested in offering security tokens. Currently, the firm has strategic relationships with regulators in the US, EU, and Asia. Now, Horizon Globex is set to expand its tokenization ecosystem to new heights after securing several multiple high-level partnerships.
What Does Horizon Globex Offer
The Horizon Globex platform offers clients the ability to tokenize nearly any asset. The company has four main products at this time. Each offers a unique benefit to businesses and investors seeking to enter the security token market. By simplifying the STO process, Horizon Globex makes crowdfunding more accessible to the masses.
One of Horizon Globex’s main products is Tokenetics. The Tokenetics system functions around three main features. Firstly, businesses can raise investment capital with no IT infrastructure via the platform. This strategy lowers the entry bar for businesses interested in a blockchain-based crowdfunding strategy.
Currently, the STO process requires businesses to acquire background information from a third-party verification system and legal guidance. Both of these requirements greatly increase the cost when hosting an STO. Importantly, eliminating these costs can boosts participation in the market.
Secondly, Tokenetics incorporates a combination of broker-dealers and transfer agents. This strategy protects investors and ensures that all tokens remain compliant. In the past, compliance concerns plagued the market. Especially when discussing security token trading on secondary trading platforms.
The third pillar to Tokenetics is its dollarized trading platform. This in-house security token exchange specializes in post-issuance trading. Notably, liquidity continues to be the main concern in the security token sector. Consequently, investors want to know that the security tokens they invest in are able to trade in a compliant manner. This exchange provides investors with that assurance without having to leave the Globex tokenization ecosystem.
Aside from Horizon Globex’s technical strategy, the company pursued a number of partnerships to further its aspirations. In January 2019, the firm signed a licensing agreement with V Stock Transfer LLC (Vstock). The agreement gave Vstock access to Horizon Globex’s proprietary software known as CustodyWare.
As part of the agreement, Vstock became a licensed and registered securities transfer agent. CustodyWare supports all ERC-20 registered and registry-exempt offerings. The software features integrated KYC compliance control mechanisms. These mechanisms adhere to SEC Rule 506© concerning post-STO token custody.
KYCware by Globex Goes Live
Also this week, Horizon Globex released its latest tokenization software add-on. The system is called KYCware and the potential it brings to the market is undeniable. The new system enables tokenized security investors and issuers to streamline the verification process. Digital securities, much like traditional securities, require KYC (Know Your Customer) and AML (Anti-Money Laundering) compliance. Previously, these requirements delayed investor’s ability to participate in STOs. To put it simply, KYC concerns hindered companies’ ability to accept investors.
KYCWare eliminates these concerns through a combination of features. Token issuers receive a white-labeled onboarding app that is customized to fit clients’ specific securities’ needs. The app automatically adjusts to the jurisdiction and regulatory requirements of the region. Users input their data in the advanced ID, document, and identification verification system.
Impressively, the app features complete customer identification programming in accordance with the US Patriot Act section 326. All records are secured offline, as well as stored in an auto expiring cache. Notably, Horizon Globex stated it will never outsource this information to third-parties. On top of these features, the entire procedure is timestamped to the blockchain with a digital signature that comes complete with an anti-tamper guarantee.
Discussing the impact of KYCWare on the market, Globex CEO, Brian Collins, described how the platform enables token issuers the ability to verify their investors without the use of third-parties. This strategy is important when you consider that regulatory bodies such as the SEC hold the token issuer responsible for these tasks. The KYCWare app is now available for both Apple and Android operating systems.
Globex Partners with STOcheck
Globex again raised eyebrows across the cryptocommunity this week after announcing a strategic partnership with the hugely popular STO listing site STOCheck. STOCheck is one of the largest STO listing sites in the market. Investors can go to this platform to receive up to the minute information regarding current STOs. This information includes an in-depth company profile such as business location, executives, and revenue.
Importantly, the partnership places Globex in strong positioning within the sector to offer its products and services to the masses. In theory, every one of the STOs listed on STOCheck is potential clients for Globex. Here, the firm gains access to the latest STOs prior to the market. Given the flexibility of Globex’s platform, you should expect it to capture a significant amount of clients from this approach.
Horizon Globex – Company Profile
Horizon Globex’s main office is located in Switzerland’s famed Crypto Valley. The firm entered the market in 2010 as a privately held tokenization platform which specializes in ERC-20 security token software. Currently, the company lists fewer than fifty employees. In January of this year, Globex appointed Mark Elenowitz as the new company President.
In February, Globex again made headlines for its staffing choices after the company announced that former Overstock CEO, Mitch Edwards was to join the team. As you would expect, Edwards isn’t a stranger to the blockchain sector. Edward’s was pivotal during Overstocks recent blockchain expansion called tZERO. In addition to his time at Overstock, he also was the CFO of Chia Network Inc.
A New Horizon
Horizon Globex appears to have found their niche in the market. As tokenized securities expand, more businesses will seek out Globex’s software solutions to simplify their crowdfunding campaigns. This company has the experience and the team to become one of the leading players in the security token sector over the coming months. You should expect to see Horizon Globex continue to make headlines for its savvy business strategies and its unique software solutions.
Square Awarded Patent for Payment Network Supporting Securities
After nearly 1 ½ years, payment processer, Square, has successfully been awarded a patent centered on establishing a ‘cryptocurrency payment network’.
Details of the Patent
The patent, which was initially filed on September 14, 2018, was done so by Square, Inc. While the patent obviously goes into great depth, describing how exactly the proposed payment network will function, the following is a short excerpt summarizing the overall goal.
“Specifically, the present technology permits a first party to pay in any currency, while permitting the second party to be paid in any currency. In this way, the technology provides benefits that remove barriers to transactions that might inhibit international commerce, or commerce with certain types of currency.”
The invention of the technology, described throughout, is attributed to three individuals.
- Christopher Michael Brock
- Brian Grassadonia
- Michael Moring
The Intriguing Part
What makes this particular patent notable for those following the digital securities sector, is the direct reference to securities. It is stated,
“The disclosed technology addresses the need in the art for a payment service capable of accepting a greater diversity of currencies including fiat currencies (US dollars, Euro, Rupee, etc.), and non-fiat currencies including virtual currencies including cryptocurrencies (bitcoin, ether, etc.), commercial paper (loans, contracts, forms, etc.), and securities (stocks, bonds, derivatives, etc.), than a traditional payment system in a transaction between a customer and a merchant, and specifically for a payment service to solve or ameliorate problems germane to transactions with such currencies.”
While details are scarce on how exactly securities will play into the mix, the potential for them to be seamlessly transferred between parties is surely intriguing.
There are a select few people that have become synonymous with Bitcoin and blockchain in general; Jack Dorsey is one of these.
Throughout the past few years, he has, not only been a vocal proponent of Bitcoin and blockchain technologies, but actually acted on his words. Through payment processing company, Square, in which Dorsey is both the Founder and CEO, the world has seen glimpses of the potential for Bitcoin as it is integrated into their services
Dorsey recently caught the attention of many as he noted that which many have – Africa holds massive potential for the adoption of, and benefitting from, blockchain. This realization has prompted a, soon to be undertaken, 6-month journey to the continent by Dorsey, as he works towards establishing blockchain based solutions to benefit the populace.
Founded in 2009, Square maintains headquarters in San Francisco, California. Above all, Square acts as a tech provider for payment processing solutions. Their rapid rise in popularity over the past decade has seen the company expand beyond U.S. borders into various countries including, but not limited to, Canada and Japan.
CEO, Jack Dorsey, currently oversees company operations.
In Other News
With a rapidly developing sector, many industry players are looking to protect their intellectual property. As such, we have found ourselves, on a variety of occasions, covering these events. The following articles touch on a few patents filed over 2019, in addition to an interesting concept involving a ‘Patent Finance Market’.
3 More Executives Leave SDX Due to Discrepencies
The blockchain-based digital asset trading venue SDX continues to have a rough start to the new year. This week, another high-level executive announced their departure from the firm. The news brings the number of executives who left the company in January 2020 up to three. The news demonstrates a realignment and shuffling of SDX’s business plan. Also, it showcases the growing pains associated with these changes
According to company documentation, all of these executives departed from their full-time positions in January. The three individuals to leave are Alex Zinder, an architecture lead at SDX, Ivo Sauter, SDX’s head of clients and products, and Sven Roth, the firm’s chief digital officer. The later of the trio agreed to stay on as an external advisor to SDX.
In a recent interview, Sauter explained the motivation behind his decision to leave. He touched on a number of critical changes made throughout the firm. These changes included a shift from the platform’s original vision. He explained that at first, the platform was to utilize the banking sector as a bridge into the rest of the market.
However, this strategy quickly changed as SDX began to tailor its platform specifically, and solely for use by banks. Sauter described how these changes effected moral and fueled the growing dis-alignment between executives and owners. He explained that originally, the platform was to be much more inclusive. For example, SDX was to enable startups to provide services around its features.
Sauter also took a moment to touch on the negative effects this corporate culture had on the project. He explained that, in his opinion, a bit more separation needed to occur between SDX and its mother company, the Swiss stock exchange operator SIX Group. Apparently, these feelings of discourse only grew as the mother company took more and more influence on SDX’s day to day operations.
Additionally, Sauter explained how the big-company approach also inhibited the company’s ability to save. Large corporations require much more reporting. In turn, this reporting raises operating costs. Additionally, smaller firms have more liberty in terms of flexibility and risk management. In the end, the corporate approach made many of the executives feel as if they had been stifled.
Despite the discrepancies, Sauter stated that he had left on good terms. He went as far as to claim that he was at a point in his career that he had no desire to have his contract renewed. Consequently, SDX chose to not offer a renewal.
Challenges in the Market
As with any major corporate reshuffle, there are going to be individuals that no longer fall in line with the platform’s overall goals. Discussing these challenges, a SIX spokesman touched on the changes and what they mean to the project. They explained that whenever you have a concept built from scratch, there are going to be many ups-and-downs associated with the development. In the end, the firm acknowledged that these changes have begun to add up with the spokesperson stating that the firm has “spent quite a few Swiss francs” on the ordeal.
SDX Moving Forward
From the tone of SDX’s past employees, the company is undergoing some heavy internal changes. As such, there is no way to determine exactly how these personnel changes will affect the overall strategy the company has chosen to follow. One thing is for sure, SDX appears to have made a priority shift towards servicing the banking sector exclusively with its new platform.
Tokeny Upgrades investorID with ONCHAINID
There is no such thing as the launch of a completed product. Times change, technology is upgraded, and needs vary. A successful product will often see various iterations and updates throughout its lifespan, in an effort to serve its intended market.
ONCHAINID is essentially version 2.0 of their previously released investorID – a solution geared towards whitelisting investors. ONCHAINID looks to oust traditional ‘central-systems’, in favour of a more decentralized approach. Along with this approach, ONCHAINID looks to build upon what investorID was able to offer, with various new functionalities.
Tokeny notes that this product is built on providing clients with 3 main features:
- Data enrichment
- Direct ownership of securities
- Customer accounts management
For those interested in learning about the initial launch of investorID, and to see how Tokeny arrived at ONCHAINID, make sure to peruse the following article.
Upon announcing ONCHAINID, Luc Falempin, CEO of Tokeny, took the time to comment, elaborating on the move and why it was needed.
Luc Falempin stated,
“For financial institutions to move away from analogue processes and step in to the digital era, they need reliable and compliant standards. Most of the protocols created for digital securities failed to recognise that identity across the value chain is essential to apply compliance for the issuance and transfer of tokenized securities. ONCHAINID, and its open ecosystem, is the most credible solution to securely and accurately identify market players and their assets on the blockchain.”
“To achieve our vision of a digital capital markets there needs to be a secure and institutional-grade system that enables the creation of digital identities for issuers, agents, investors and securities. This is why we have created ONCHAINID, to bring forth a shared and controlled data-rich ecosystem that transforms traditional finance into a truly digital and connected industry.”
Speaking with Luc
In our ongoing interview series, we have had the pleasure of hosting an exclusive discussion with Luc Falempin, CEO of Tokeny. Here, we learn more about what exactly Tokeny has to offer (including the predecessor of ONCHAINID).
Founded in 2017, Tokeny maintains headquarters in Luxembourg. Since launch, the team at Tokeny has been hard at work, developing a variety of solutions, targeted towards the digital securities sector. One such solution is, aforementioned, ONCHAINID discussed here today.
CEO, Luc Falempin, currently oversees company operations.
In Other News
Tokeny has had a successful few months. It was only recently that we were reporting on the company being included in 2019’s ‘FinTech 50’ – A comprehensive list of the top European companies within the industry.