stub OpenFinance Network 'OFN', to De-List Assets Unless Issuers Step-Up - Securities.io
Connect with us

Digital Securities

OpenFinance Network ‘OFN’, to De-List Assets Unless Issuers Step-Up

mm
Updated on
openfinance

A Harsh Blow

No one is trading their tokenized securities on OpenFinance Network (OFN); Well, not nearly enough to cover the cost of hosting such assets.  As a result of this limited activity, OFN has found themselves between a rock and a hard place.

With OFN garnering funds for operational costs through trading fees, it shouldn’t be surprising to hear that they need a new approach.  This new approach is simple – token issuers must sign new contracts, and, essentially, pay a listing fee for their tokens.

If this doesn’t happen, OFN indicates that on May 21st, all tokenized securities will be de-listed from their platform.  At this point, OFN will no doubt suffer from an identity crisis, as acting as a trading platform for such assets is their whole shtick.

Here’s to hoping that issuers step up to the plate!

OpenFinance – A Trendsetter

News of the potential delisting of such assets from OFN is, obviously, disheartening.  To date, OFN has been seen as a trendsetter, with regards to digital securities.

It was only just over a year ago, that we reported on the launch of their trading platform.  At the time, it was the first of its kind, and represented great hope for the future of the sector.  While it may continue down this path, the current issue at hand is, most definitely, a serious hiccup along the way.

OpenFinance Network Launches First U.S. Security Token Trading Platform

Funding Needed

To ask for a listing-fee from issuers of supported assets, is not really a stretch at all.  While OFN may have offered free listings to date, as they attempted to ramp up adoption of their platform, this is not necessarily normal practice.

Exchanges, small and large, typically charge initial listing fees, in addition to recurring yearly fees, ie. The NYSE, and Nasdaq

The following chart highlights where OFN has generated their income, to date.  While it is unclear if there will be any change to these trading fees, they will soon be accompanied by a new listing fee, as well.

Commentary

In their statement, provided to clientele, OFN makes it clear that operational costs are at the heart of this issue.  They stated,

“We have asked the issuers currently listed on the platform to renew their listing agreements and cover a portion of our costs, including through annual listing fees, as are common in large, public markets, where issuers pay exchanges for listing services.”

OpenFinance Network

Founded in 2017, OpenFinance Network maintains headquarters in Chicago, Illinois.  Above all, OFN acts as a registered trading platform for both, tokenized and non-tokenized, securities.

CEO, Juan M. Hernandez, currently oversees company operations.

Advertiser Disclosure: Securities.io is committed to rigorous editorial standards to provide our readers with accurate reviews and ratings. We may receive compensation when you click on links to products we reviewed.

ESMA: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Investment advice disclaimer: The information contained on this website is provided for educational purposes, and does not constitute investment advice.

Trading Risk Disclaimer: There is a very high degree of risk involved in trading securities. Trading in any type of financial product including forex, CFDs, stocks, and cryptocurrencies.

This risk is higher with Cryptocurrencies due to markets being decentralized and non-regulated. You should be aware that you may lose a significant portion of your portfolio.

Securities.io is not a registered broker, analyst, or investment advisor.