Securities being tokenized on the Blockchain
A Coinbase-backed startup, Securitize has partnered with OTCXN in order to start streamlining the process of issuing and trading security tokens. OTCXN is a blockchain-powered capital market infrastructure organization that aims to change the way securities are used.
The collaboration between these two companies is to create a service that will enable institutional traders to deal in tokenized crypto assets all while avoiding the settlement risks that could be associated with traditional systems.
A solution for the crytpo space
According to reports coming from the companies, they want to be able to offer a new all-in-one way of bringing solutions to facilitate the issuance and trading of security tokens. The collaboration of both companies will bring new projects to firms all over the globe and make it possible for the sale of tokenization of securities.
These services are expected to increase in popularity as the opportunities and interest of companies continue to grow about tokenization using the Blockchain.
The token will be made using the Ethereum Blockchain with the ERC-20 standard, along with smart contracts that will enable total compliance.
OTCXN and the Coinbase-backed startup will be providing all the necessary infrastructure to organize a secondary market trading of digital assets.
According to the founder and CEO of OTCXN, Rosario Ingargiola:
¨Under the OTCXN model, issuers and investors are able to trade these assets with anyone on the network, no matter what blockchain they are natively issued on, what custodian they use or what exchange client orders are sitting on.¨
The Blockchain will differ from the traditional ledger system while allowing all transactions to take place on-chain.
Ingargiola also stated that:
¨You don’t have to trust us since we are not the custodian of any assets, nor the counterparty to any trades.¨
The CEO and co-founder of Securitize Carlos Domingo has expressed that, while digital representations will be traded on the OTCXN system the companies will still own its securities.
The infrastructure of both companies have been built in full compliance with regulatory requirements and the companies have to wait for approval from regulators before launching their service in different regions.
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