Connect with us

Regulation

The Top 3 Government Security Token Programs (Global Edition)

mm

Updated

 on

Top 3 Government Security Token Programs

Security tokens continue to see increased adoption in the cryptospace. The added protections built into these unique tokens make them ideal for use by both governments and traditional investment firms seeking to enter the blockchain space in a cautious manner.

Investors aren’t the only ones to realize the capabilities of these regulated tokens. Today, there are a growing number of government programs in the works that utilize security tokens. Governments from across the globe continue to develop systems that integrate security tokens as a core component of the protocol’s functionality. Below are the top three governmental security token programs currently under the microscope.

Singapore Settlement System 

The government of Singapore is a strong supporter of cryptocurrencies. Government officials took a pro-active role in the market by creating favorable blockchain regulations. As a result, the country is now home to some key players in the industry such as the cryptocurrency NEM.

Singapore via Variety

Singapore via Variety

Earlier in the month, the government revealed an automated payment platform that will allow users to settle security token transactions across multiple blockchains. The program involved numerous parties including the Monetary Authority of Singapore (MAS), Singapore Exchange, and Nasdaq. Nasdaq’s senior vice president, Magnus Haglind spoke on the magnitude of the project. The ability to complete cross chain transactions is a “major step” in the integration of blockchain tech into the traditional market.

US Department of Defense 

The US Depart of Defense is interested in blockchain technology in a major way. DARPA, the Defense Advanced Research Projects Agency plans a blockchain workshop for February 2019. According to a public post, DARPA is curious about utilizing the new technology in a couple of different ways including for logistical support, supply chain management, and crowdfunding operations.

DARPA is interested in using security tokens to crowdfund certain aspects of their operations. The concept is revolutionary, and it could lead to a boost in the already multi-trillion-dollar budget the organization enjoys. Additionally, DARPA wants to study the possibilities of a cryptocurrency communication network and a blockchain-based supply chain management system.

Russia Tokenization

A joint venture between The National Settlement Depository (NSD) and the Russian state-owned bank, Sberbank CIB is currently underway to explore the full possibilities of tokenizing assets. Security tokens are ideal for the tokenization of major assets that require that government regulations be adhered to. The intent is to tokenize items such as securities, private equity, and real estate,

One of the main goals of the project is to bring more transparency and consumer protection into the Russian cryptomarket. The hope is that security tokens can bridge the gap between the cryptomarket and traditional investors. The program began over the summer and is currently in the beta testing stage.

It’s Just the Beginning 

All of these programs showcase how important security tokens are to the development of the crypto space. The security token sector continues to see more participants as the unique benefits of these tokens come to light. You can expect to see many more government security token projects enter the market in the near 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.