Security Token Exchanges
There are currently very few security token exchanges. This gives the current exchanges a first movers advantage.
Securitize initially launched in 2017 as a digital securities issuer and since then they have been successful in tokenizing some of the most successful security tokens such as Blockchain Capital (BCAP), and SpiceVC (SPICE). This is currently the most successful security tokens issuer.
In 2021 Securitize launched an exchange to offer a marketplace to buy and sell digital securities. The marketplace is divided in two sections. The “primary market” serves as a market offering the option to purchase STOs (security token offerings) and the “secondary market” functions more like a traditional exchange with users buying and selling from one another.
INX was the first US based decentralized security token trading platform, previously it was known as Openfinance until it was acquired by INX Limited. This is currently a great option for investors who wish to trade in existing security tokens. They've partnered with the largest token issuers, and those tokens are automatically pre-qualified to be listed on the exchange.
Some of the features of this exchange:
- A global registry of qualified entities and securities creates a mechanism for a decentralized securities depository that provides a public governance model to ensure maximum transparency and protection for investors.
- The system is designed for traditional alternative assets and token-based securities, and allows for a streamlined compliant process from issuance to secondary market trading
- Asset may also be registered with the SEC/EDGAR and that data can be referenced from the OFN as a subset of the Asset data object.
tZERO at one time was the most anticipated security token trading platform on the planet. This exchange is powered by the same team as overstock.com and is the brainchild of it's CEO Patrick Byrne. While the exchange is currently live, only a handful of tokens can be exchanged.
This exchange has been a let down for most users due to a lackluster experience, a poor trading platform, and too few tokens being listed.