The security token exchange, OpenFinance Network (OFN), made headlines this week after receiving financial backing from Sharpe Ventures. The move signals a continued shift in the attitude of traditional investment firms towards the crypto space. It also places OFN in the spotlight as one of the primer security token exchanges in the market.
While OFN isn’t the only security token exchange to enter the market this year, their all-inclusive approach makes them unique in the space. The company offers users a full end-to-end security token experience. Their network includes the trading, issuance, and the SEC compliant clearing settlement process associated with security token ownership. The project now appears to have caught the attention of venture capitalist.
Chicago-based OFN entered the financial markets four years ago with the goal of providing investors access to a secondary market for trading illiquid assets. The company specializes in hedge funds, private equity, Reg D, Reg A, and non-traded REITs. The company made headlines earlier in the year after announcing a number of partnerships with blockchain-based technology firms. These firms include Harbor, Republic, Securitize, and Science Blockchain.
OFN currently lists over 135 security tokens with a total market cap of just over $6 billion. The platform utilizes the Ethereum blockchain to maintain their networks integrity. Additionally, OFN’s network includes partnerships with a number of leading banks, brokerage houses, and transfer agents.
In a public statement, OpenFinance’s Chief Product Officer explained how his firm covers the full spectrum of illiquid investments. He went on to describe how OFN recognized the huge advantages afforded through blockchain integration. Now, the company plans to become a driving force in the security token sector.
In a recent interview, Sharpe Ventures Co-Founder, Dr. James Butler, elaborated on his firm’s decision to back OFN in their strategic move into the cryptospace. He explained that Sharpe Ventures “aims to invest in blockchain businesses with proven market traction.” Dr. Butler also touched upon the brand recognition and trust gained by the exchange over their four years of operation. He referred to the OFN development team as “experienced and multiskilled.”
Tobin McComas, OpenFinance’s Director of Business Development also spoke briefly on the new strategic partnership. McComas explained his firm’s elation with the partnership. He also praised OFN’s foresight in the security token space. At on point, he stated that security tokens will be “revolutionary for financial markets globally.”
Ethereum-Based Security Token Platforms Emerge
Ethereum continues to dominate the token issuance arena. Their ERC-20 protocol is. By far, the most widely used token issuance platform in existence. Now, Ethereum also has a large percentage of the security tokens entering the space. Platforms like OFN push the market towards increased adoption of these unique tokens by integrating SEC requirements into their platform.
Security tokens create a safer investment environment for all parties involved. You can expect to see security tokens reach new heights in terms of adoption if this trend continues as predicted by many analysts.