Tokenized Securities – Courtesy of Lykke and Nx’change

Expansion of sentiment into Europe

A warming of sentiment toward security tokens is finding its way across Europe.  In recent news, Lykke and Nx’change have announced a partnership that will result in the development of a security based exchange.

News of this platform comes as various North American counterparts, such as Coinbase and Poloniex, are racing to establish themselves in the industry.

This flurry of development comes as the blockchain industry evolves from the hardships endured through the rise and fall of ICOs.  Offering a much more transparent and structured approach to investing, securities tokens look to offer investors what utility tokens couldn’t.

Proposed Platform

The proposed platform would not only provide blockchain access to traditional assets, but facilitate secondary markets of security tokens.

With Lykke specializing in blockchain services, and Nx’change’s years of experience dealing with securities, the announced platform has the potential to be huge.  The partnership is structured such that Lykke will hold equity within Nx’change.  In compensation for these holdings, Lykke will provide Nx’change with their blockchain expertise.  Nx’change, meanwhile, will monitor and enforce safe practice measures to ensure compliance with current regulations.  This is a perfect partnership to usher in a hotly anticipated service.

One reason for the anticipation is the inherent perks that security tokens offer.  Through the use of smart contracts, security tokens representing equity in a variety of assets will become tradable, with unprecedented efficiency and transparency.  By facilitating secondary markets, a platform such as this brings the much coveted liquidity that investors strive to attain in their holdings.  Liquidity is only one perk of many offered by security tokens.  Transparency, speed, and accessibility are a few others.

With an industry leader such as Coinbase’s Brian Armstrong stating he envisions hundreds of security tokens in years to come, it is clear that security tokens will be game-changing.  Lykke and Nx’change have taken a large step towards both facilitating and capitalizing on that future.

Lykke

Based out of Zug, Switzerland, Lykke is a Fintech company founded by Richard Olsen.  They specialize in blockchain solutions, and have a clear vision of a near future where security tokens are commonplace in finance.

Lykke founder, Richard Olsen

Commenting on the partnership was the founder of Lykke, Richard Olsen.  He stated, “This is a historic day – not only for Lykke and Nx’change as companies – but for our broader shared vision that is targeted at a more equitable and democratic financial world. The increasing acceptance of digital assets and blockchain infrastructure as the technology of the future correctly comes with a greater emphasis on regulation and compliance. This partnership envisages to satisfy all these things while still bringing all the benefits of transformative technology to any individual who wishes to access or exchange anything of value.”

Nx’change

Operating within the Netherlands, Nx’change currently operates as both a regulated market, and an investment firm.  They provide the ability for investors to directly trade securities without the intervention of either banks or brokers.

nx’change CEO, Marleen Evertsz

Nx’change CEO, Marleen Evertsz, stated “We believe that the time has come for a more modern form of capital market transactions: efficient, real-time, 24/7, transparent, and supported by compliance procedures that assure maximum security. We are delighted to partner with Lykke and to join forces in building the Next Generation Stock Exchange.”