Residents of Ontario, Canada, will soon gain access to a new platform, serving as a secondary marketplace for digital securities. TokenGX has announced that the Ontario Securities Commission has approved their bid to launch FreedomX.
This approval will take shape as a pilot program, allowing FreedomX to support security tokens issued on the TokenFunder platform, until April 17, 2021. During this period, participation is restricted to Ontario residents only, who have completed the appropriate, and required, KYC/AML process.
Unlike most similar platforms, to date, this secondary marketplace is being targeted towards, not only institutional investors, but retail as well. While there are restrictions in place – such as a $2500 investing limit for retail investors – this marks an important step forward for the sector.
TokenGX indicates that the FreedomX platform, itself, will be powered by blockchain technologies developed by TokenFunder. These technologies, which operate on the Ethereum blockchain, will, hopefully, provide investors with the liquidity sought by all.
For full details on the filing, make sure to peruse the approval by the OSC. This document can be found HERE.
Upon announcing the approval of this pilot, each cofounder of TokenGX took the time to comment. The following is what each had to say on the importance of the move.
Laura Pratt, Cofounder of TokenGX, stated,
“As part of the current Creative Destruction Lab blockchain cohort, our FreedomX platform will define the next generation of trading in Canada and unlock enormous value in the private markets. We envision a world where all assets will be tokenized and tradeable.”
Alan Wunsche, Cofounder of TokenGX, stated,
“We are excited to receive the support of the OSC and specifically the OSC LaunchPad. The OSC LaunchPad team clearly understands the transformative potential of blockchain technologies in capital markets. Their willingness to grant exemptive relief in the private markets demonstrates a commitment to supporting innovation while putting investors first. This is an extremely important day for Canadian competitiveness in a global financial market.”
Wunsche continued, elaborating on the role to be played by affiliate, TokenFunder, stating,
“TokenFunder’s leading edge security token issuance platform has a full investor onboarding and investing experience for retail and accredited investors. With today’s announcement, TokenFunder will now power the FreedomX secondary trading marketplace. With digital shares recorded on a public blockchain, we will not only dramatically reduce the cost of capital for Issuers compared to traditional platforms, but also provide liquidity through the secondary trading marketplace, which also includes critical ongoing management disclosures and investor relations services for our Issuers. These ongoing services will be good for both investors and issuers on the TokenFunder platform.”
TokenFunder / TokenGX
Based in Toronto, Ontario, Canada, TokenFunder is a digital securities issuance platform. TokenGX operates as its affiliate, while holding the designation as a security token exempt market dealer. This designation, which is held in multiple provinces, was bestowed upon them by the OSC in early 2019.
CEO, Alan Wunsche, currently oversees company operations.
Ontario Securities Commission
The Ontario Securities Commission is a Canadian regulatory body, similar to the U.S. based, Securities and Exchange Commission. More specifically, the OSC is tasked with ensuring fair and transparent markets surrounding securities and commodities.
CEO, Maureen Jensen, currently oversees operations at the OSC.
In Other News
While this news is a positive development for digital securities within Canada, TokenFunder/TokenGX are by no means the only industry participants. The following are a pair articles discussing developments pertaining to competing Canadian based companies.