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.
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.
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.
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.
Horizon Globex – An in Depth Look at an Industry Leader
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.
The Global Security Token Conference ft. MaxiMine
On January 30, 2019 security token experts from across Asia converged in Singapore for the Security Token Future Conference. Here, industry leaders discussed the overall direction of the market including regulations, new use cases, and major players in the industry. By all accounts, the STO conference was a resounding success. Attendees of the conference could play a major role in guiding the Asian security token market.
Security Token Future Global Conference
The Security Token Future Global Conference featured a whos-who of the Asian security token sector. The seminar included an open discussion panel. The panel consisted of some heavy crypto hitters such as Jack Chia (Blockchain Alliance), Nizam Ismail (RHTLaw), Edward Du (TALENTA), just to name a few. The one-day event also included several keynote speakers such as Nock Cowan (CEO GSX) and GITA Co-founder Mik Mironov.
The event sold out quickly. The venue was meant to accommodate only 300 people, but some exceptions were made for those that arrived after all the original seats were filled. The turnout demonstrates the growing importance of security tokens in the Asian market. Asia continues to dominate trading in the crypto sector. The introduction of security tokens is sure to expand the region’s influence.
The event was made possible through a collaborative effort. Goldensand Capital, TALENTA, GITA, SMC Capital hosted the event. There were also a number of well-known sponsors of the event. The cloud-based mining platform MaxiMine was one of the main sponsors which captured the attention and imagination of the attendees. Additionally, IDCM, DSX, Galaxa , and RHTLaw all contributed to make the event a huge success.
MaxiMine had the main booth at the event where they showcased their cloud-based mining platform. The firm utilizes a fully transparent and highly-efficient mining protocol to reward their pool members. Unlike traditional cloud mining platforms, users are rewarded with hashing power for staking their tokens.
Hashing Power Credit
The hashing power credit system utilized by the MaxiMine platform functions similarly to a Proof-of-Stake algorithm such as the one used by the crypto NEO. Mining pool participants earn MaxiMine Coins for participating. These tokens are what users stake to earn free hashing power. Mining pools allow anyone to begin mining cryptocurrencies. It’s nearly impossible to mine Bitcoin nowadays without joining one of these highly-productive mining pools.
More Coins – More Options
One of the best features of the MaxiMine platform is the ability to mine multiple types of crypto. This is an excellent feature because Bitcoin mining equipment utilizes special ASIC cards which are only able to mine coins that share Bitcoin’s SHA-256 algorithm. MaxiMine users can switch between a huge selection of cryptocurrencies without worrying about compatibility issues. This saves miners from having to purchase thousands in new mining equipment.
See Everyone Next Year
After such a great turnout, it’s no surprise that people want to know more about the next event. Events such as the Security Token Future Global Conference help to cultivate productive growth in the security token sector. Many in the cryptospace see security tokens as the logical next step in cryptocurrency adoption. These events help more people understand the importance of this revolutionary technology.
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