Connect with us

Digital Securities

Securitize Partners with OTCXN on Security Token Launch Platform

mm

Updated

 on

On February 19, 2019, Securitize and OTCXN announced a strategic partnership. The goal of the partnership is to create a global security token issuance and trading platform. While the number of firms entering in the security issuance field continues to grow, there are few platforms capable of handling the task globally.

Securitize and OTCXN desire to change this situation through a combination of factors. The team’s new platform will operate completely within the local security regulations of each region. This allows companies from anywhere in the world to tokenize assets as they desire. Tokenization enables these firms to add liquidity to previously non-liquidable assets. In turn, tokenization creates a slew of new marketplaces to cater to the newly liquidable assets.

Securitize Tokenization

In order to make this awe-inspiring network function, both firms needed to provide their expertise to the equation. Securitize handles the tokenization process and issuance. The company is well-versed in these tasks. In fact, Securitize is so good at what they do; they recently secured millions in funding from North America’s largest crypto exchange – Coinbase.

Additionally, Ripple, the original bank-focused cryptocurrency, also pledged funding to the platform. Receiving funding from these firms speaks loudly because both firms work heavily with the SEC. To date, the security token launch platform has worked with 22x, Augmate, and Spice VC.

OTCXN Infrastructure

For their part, OTCXN will integrate their custodial ledger system into the platform.  These tasks include providing the necessary infrastructure for the project. Additionally, OTCXN tasks include facilitating secondary market trading. This last task is critical as many analysts point to the lack of secondary markets as one of the main drawbacks encountered by current security token users.

How The Platform Works

Speaking on the project, OTCXN’s CEO, Rosario Ingargiola, explained that the platform functions in a “seamless” manner. Users are able to trade digital assets with anyone globally, regardless of what blockchain their tokens originated from. He discussed how the platform can accommodate trades across all custodial services and exchange clients.

Security Token Industry Leaders via Twitter

Security Token Industry Leaders via Twitter

Ingargiola took some time to describe some of the benefits the new platform introduces into the market. He noted that all assets being traded on the new network are “settled in real-time, on-chain, with finality, and cryptographic provability.”

What’s the Next Move?

At this time the project awaits approval from local regulators in some regions. Gaining local regulatory approval is a crucial element when discussing offering security token services globally. Every region follows a unique set of securities regulations. This diversity is what has limited the expansion of other tokenization platforms globally in the past.

A Truly Global Experience

If Securitize and OTCXN succeed in their grandiose strategy, it signals a shift to a more global approach to the market. To date, cryptocurrency regulations have been limited to local legislators. Now that the technology exists to handle the global market, it is sure to usher in new discussions on creating global security token legislation in the future.

David Hamilton is a full-time journalist and a long-time bitcoinist. He specializes in writing articles on the blockchain. His articles have been published in multiple bitcoin publications including Bitcoinlightning.com

Newsletter Subscription

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.


Warning: call_user_func_array() expects parameter 1 to be a valid callback, class 'FlyingAnalytics\Js' not found in /home/customer/www/securities.io/public_html/wp-includes/class-wp-hook.php on line 303