Security Token News
“World’s Most Liquid Exchange” ZBX – Malta
Malta is shaping up to be a premier location for security token exchanges. The country’s pro crypto stance and regulatory environment make it an ideal location for those seeking to explore the security token sector. The experienced development team behind the ZBX exchange is one of those entering Malta’s crypto zone in the coming months.
ZBX
The ZBX platform seeks to be among the first fully regulated crypto exchanges in the world. In order to accomplish these tasks, the company must adhere to a number of strict legislative guidelines regarding the sale of securities. Additionally, ZBX must undergo frequent audits. The audits are to be conducted by the big four accounting firms.
Low Fees
ZBX will offer users a unique experience including zero trading fees for certain trial-periods and trading volumes. Also, The platform integrates advanced API technology. Users can connect their account to other ZB exchanges including ZB.com and ZBG. The ZB development team is no stranger to the cryptomarket. ZB.com is one of the top 3 exchanges in the world right now. The exchange has anywhere from 300 – 700 million USD in daily trading volume.
ZBX Exchange in Malta
It’s no surprise that this latest venture raised eyebrows amongst the crypto community. ZBX promises to tackle many of the security token sector’s biggest concerns with their all-inclusive approach to the market. Maltese officials are also excited to have the exchange and the government continues to create a solid regulatory framework for the security token community.
Liquidity is King
When it comes to concerns surrounding the security token sector, liquidity is the main issue usually brought up. Since security tokens can’t be transferred without authorization, developers recognized the need to expand the liquidity of this market. ZBX users gain the advantage of being a part of one of the “most liquid exchanges on the planet” according to the companies CEO Dave Pulis.
FIAT Trading Pairs
According to a recent Forbes report, the exchange will feature fiat trading pairs in both EUR and USD. These tokens will give ZBX investors more options during times of market volatility. Fiat tethered coins are an important part of many people’s crypto investment strategy. This is because these coins are less likely to fluctuate in value because they are pegged to the value of a fiat currency such as the dollar.
Hosting Stable Coins
ZBX will host a variety of security tokens including stable coins. Security tokens can be pegged to other assets such as gold or oil. When a token is pegged to one of these stable assets it’s called a “stable coin.” Stable coins play an important part in the cryptocommunity. Investors use these tokens to escape volatility in the market.
Adding New Security Tokens to the Exchange
Currently, interested parties can their token added to the exchange by purchasing 20 BTC worth of XT tokens. Of course, the platform does have strict guidelines that all listed tokens must follow. Additionally, the platform comes from a solid history of cybersecurity with the websites mother exchange ZB.com, never hacked, despite the exchange entering the market in 2013.
A Complete Package
You should expect great success from ZBX in the coming year. The platform has an experienced team funding their efforts, along with a recognizable network of partners. Malta seems like the perfect place for ZBX to call home. ZBX is now open to European traders.
This week saw more exciting developments in the Asian security token sector. CEZEX, Asia’s first licensed security token exchange, announced a strategic partnership with longtime blockchain hardware developers CoolBitx. The partnership strengthens CEZEX’s already pivotal role in the Asian market and demonstrates a desire for more security token integration in the region.
CEZEX
CEZEX is a Philippines-based security token exchange. The platform is unique in that it is the first licensed security token exchange in Asia. The platform is based in the Philippines Cagayan Economic Zone Authority and is the brainchild of the Asian Blockchain and Crypto Association (ABACA).
News of the CEZEX exchange first hit the market in January of this year when the platform’s backers announced plans to expand their operation into Hong Kong by 2020. This move places CEZEX in the ideal location for a security tokens exchange in the region. Hong Kong continues to see growth in their crypto sector ever since China banned most crypto-related activities back in August 2017.
CoolBitx
CoolBitx is an industry leader in the region. The firm made headlines way back in 2015 when it became the first company to introduce a Bluetooth cryptocurrency wallet. Since then, CoolBitx continued to expand its services. Today, the company offers a host of blockchain related products and services.
Charlie Lee Speaking on CoolBitx Wallet
For their part, CoolBitx will handle all security token custodial services for CEZEX. Security tokens differ from utility tokens in that they don’t permit anonymous transactions. Instead, security tokens must follow the strict securities laws already covering the market. CoolBitx will be responsible for verifying and completing tokenized securities exchange transactions. Their responsibilities extend after issuance and into secondary market transactions.
Secondary Market Concerns
While primary regulations are often integrated directly into a security token’s smart contract, secondary market compliance is a hot button issue in the market. Secondary market concerns hit a fevered pitch this week when the DTCC released their fair market practices paper which outlines how to deal with security tokens on the secondary market.
The intervention of the DTCC marks a turning point in tokenized securities. The DTCC handles securities exchanges for the traditional markets. The group handles quadrillions in securities exchanges yearly and their influence in the market can’t be understated. DTCC’s paper argued that security tokens need secondary compliance in order to maintain fair market practices currently in place. This is an argument echoed by many in the industry
ABACA Asian Blockchain and Crypto Association
ABACA continues to see expansion with this latest partnership. The group now includes multiple blockchain industry leaders. One of the group’s most prominent new members is the Taiwan-based Formosa Financial. Speaking on the group’s unprecedented growth, ABACA’s director, Mel Songco explained how the group creates a more “compliant and secure business environment.”
Security Tokens in Asia
Asia has always generated momentum in the cryptomarket. This latest maneuver demonstrates a desire by traditional investment firms to enter the blockchain space. You can expect to see more firms join ABACA in the coming months as the digital economic revolution continues.
AEP Integration
Today, a forth coming digital securities exchange, Archax, has announced a partnership with Quod Financial. This pairing will see Archax turn to Quod Financial for various services, ranging from smart-order routing, trade automation, to order management and more.
These services are made available through integration with Quod Financial’s ‘Adaptive Execution Platform’. Capabilities made possible through this platform will allow for Archax to effectively deliver their product to institutional investors this coming year. If they achieve this goal, Archax will become – with the help of Quod Financial – one of the first offerings of its type seen in the industry.
Commentary
In their press release, representatives from both companies took the time to elaborate on the development.
Mickael Rouillere, CTO of Quod Financial, stated,
“Archax will be the first venue to bring digital asset trading into the mainstream financial community. Existing crypto venues have been primarily retail driven, and so it has been incredibly challenging for our buy-side and sell-side clients to include any form of blockchain-based instruments in their portfolios as they have lacked a regulated and stable venue. Given the rigorous selection process, we are proud to have been selected for this market-changing project to bring both digital assets as well as our data-driven execution intelligence to a wider audience.”
Graham Rodford, CEO of Archax, stated,
“We wanted to find a best-of-breed partner with an established and proven trading platform used by both the buy-side and sell-side. And one that was ready to handle the complexities of digital assets. Quod’s open, scalable and robust platform fitted the bill perfectly and we are happy to be able to offer it to clients as one of the ways of accessing our exchange…A key decision when evaluating technology providers from the traditional world was to find a platform that could be fully customised to support the new and developing security token space. Quod’s design, using industry standard architecture, allows easier customisation when required. That, coupled with their experience of handling high throughput trading for many tier-one banks and an array of other established regulated clients, made them an ideal partner.”
Quod Financial
Quod Financial is an established company specializing in capital markets. Since their launch in 2004, the company has expanded from London to maintaining offices in New York, Paris, Hong Kong, and Dubai.
Company operations are overseen by CEO, Ali Pichvai.
Archax
This London based company was founded in 2018 by Graham Rodford, Matthew Pollard, and Andrew Flatt. The company is aiming for a 2019 launch of their platform, designed to act as an exchange for digital securities.
In Other News
Archax, in particular, has found themselves in our news feed various times in past months. They have had an impressive development period, resulting in investments from SPiCE VC among others. Check out the articles below to learn a little more about Archax.
SPiCE VC invests in Digital Securities Exchange, Archax
Archax – A Bridge to the Digital Economy
End-to-End
Various companies have made announcements detailing intended usage of token standards lately. As the development of various crowdfunding platforms in the digital securities sector continues, the time has come for many to choose what they feel is the most promising standard. With this in mind, seriesOne has just announced that they have partnered with Polymath.
This partnership will see seriesOne utilize the ST-20 token standard to issue and manage digital securities. The ST-20 protocol is based off of the Ethereum blockchain, and will allow for seriesOne to maintain compliance with global regulations governing the industry.
The Future is ST-20
For seriesOne, it was a simple choice to settle on ST-20. This token standard was one of the first to be developed specifically with digital securities in mind. As such, Polymath has had more time than most to develop, hone, and market their offering. This effort has seen the standard adopted by various companies, with seriesOne being the most recent.
Commentary
In their press release, the CEOs of each company took the time to express their thoughts on the announced partnership.
Michael Mildenberger, CEO of seriesOne, stated,
“Investors around the world trust Polymath, which was fundamental to our decision to work together…We are confident that working with the Polymath team using the ST-20 protocol will enhance the process of raising capital on our platform.”
Kevin North, CEO of Polymath, stated,
“Polymath is proud to work with innovative partners like seriesOne, who has fulfilled a specific demand for a turnkey financing portal for any fundraising process…We are thrilled to be the chosen technology standard for the seriesOne platform, and we look forward to demonstrating yet again how industry can work together to set a standard for creating and managing a successful Security Token Offering (STO).”
seriesOne
seriesOne is a crowdfunding platform, which specializes in the issuance, distribution, and management of digital securities. Through their platform, issuers are able to effectively, and efficiently, host security token offerings. The company is based out of Miami, and was founded in 2013.
Polymath
Polymath is a Canadian company, which maintains headquarters in Toronto. The company was established in 2017, and is spearheaded by CEO, Kevin North.
To date, Polymath and their token standards remain one of the most adopted solutions in the young world of digital securities. Their own utility token is available for trading on various industry leading cryptocurrency exchanges such as Poloniex and Bittrex.
In Other News
Each of these companies discussed here today have found their way into our headlines in recent months. For a look at what they have been up to recently, make sure to check out the few articles listed below!
Bithumb Announces New US Security Token
Digital Securities Consortium formed Between Industry Participants
Polymath Proves DEX Security Token Concept