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.