Digital Securities
Will Nasdaq make a foray into Security Tokens?
Whats new?
Reports are indicating that Nasdaq is considering launching a securities platform in the near future. With industry counterparts dipping their toes into the industry throughout 2018, this should come as no surprise.
‘TheBlock’ reports that this platform is being developed through a partnership formed between Nasdaq and Symbiont. Tailored towards institutional applications, Symbiont specializes in smart-contract platforms.
A platform developed by these two companies will reportedly not only allow for the issuance of security tokens, but for them to be traded as well.
The benefits of security tokens are plenty. Information on their unique characteristics, and what they can offer to investors can be found on our education page HERE.
STO’s in lieu of ICO’s?
Although a select few ICOs have proven to be wildly successful, the sad fact remains that the vast majority of them are utter failures. A lack of regulation and oversight has led to millions being lost on scams, and poorly run projects.
With an increasing number of studies showing the poor performance of ICOs, it is no wonder that many are turning to the very promising STO (Security Token Offering). With well-respected companies such as ICE, Nasdaq, and eventually Coinbase, gravitating towards security tokens, investors will be able to truly buy into companies in a safe manner.
Comments by Adena Friedman, CEO of Nasdaq, dating back to April of 2018, foreshadowed their potential interest in security tokens. At the time, Adena stated to CNBC, “Certainly Nasdaq would consider becoming a crypto exchange over time…If we do look at it and say ‘it's time, people are ready for a more regulated market,' for something that provides a fair experience for investors.”
Nasdaq competition?
Nasdaq is not proving to be a trailblazer in the industry. However, due to their reputation, they will no doubt be a force to be reckoned with.
Companies already ironing out the blueprint on how a securities exchange can operate are few. Below are a few that are well-known and are rapidly establishing themselves as the cornerstones in the young market.
– Polymath
– TZero
– Neufund
Suite to be?
Most companies that have begun to test the rocky waters of the world of crypto have indicated their desire to create a suite of products. The intention is to not just create a singular offering, but a series of complimentary services that provide access to anything an investor would be interested in.
Notably, rival company ICE announced the soon to launch child company named BAKKT. It was indicated that the intention for BAKKT would be to eventually offer a bevy of investment services to consumers.
Possibly the most well rounded, and diverse offering of services in the industry to date belong to Coinbase. Led by Brian Armstrong, Coinbase has launched services ranging from an exchange, to index funds, and soon security tokens.
Is the launch of a security token platform just the first step in an eventual suite of products for Nasdaq? As a blockchain enthusiast, what do you think?
