Securitize Partners with OTCXN to Launch a Global STO Platform
Securitize andOTCXN are to establish a strategic partnership, in order to create a global security token issuance and trading platform. More firms engage in issuance, while few platform are out there to handle the task on the global level.
Securitize andOTCXNaim to ease this situation by operating the new platform within the local security regulations of each region. Hence, it will allow companies worldwide to tokenize assets as they desire. In general, tokenization adds liquidity to previously non-liquidable assets. Also, tokenization establishes new marketplaces.
Both firms will provide their expertise to the proposed partnership. Securitize will be responsible for tokenization and issuance. Securitize is a major player in this field, recentlythey receieved funding from North America’s largest crypto exchange,Coinbase.
Ripple, the original bank-focused cryptocurrency, also invested in the platform. Funding from these firms is important due to their close coopetation with the US Securities and Exchanges Commission. The platform by Securitize has so far been a success for22x,Augmate, andSpice VC.
OTCXN will contribute with custodial management. The firm is to integrate their custodial ledger system into the platform. Also, OTCXN tasks will cover secondary market trading. This last task is of critical importance as many consider the lack of secondary markets to be one of the main drawbacks encountered by current security token users.
Rosario Ingargiola, OTCXN CEO
Speaking on the project, OTCXN’s CEO,Rosario Ingargiola, explained that the platform functions in a “seamless” manner. Users are able to trade digital assets with anyone globally, regardless of what blockchain their tokens originated from. He discussed how the platform can accommodate trades across all custodial services and exchange clients.
Ingargiola took some time to describe some of the benefits the new platform introduces into the market. He noted that all assets being traded on the new network are “settled in real-time, on-chain, with finality, and cryptographic provability.”
At this time the project awaits approval from local regulators in some regions. Gaining local regulatory approval is a crucial element when discussing offering security token services globally. Every region follows a unique set of securities regulations. This diversity is what has limited the expansion of other tokenization platforms globally in the past.
If Securitize and OTCXN succeed in their grandiose strategy, it signals a shift to a more global approach to the market. To date, cryptocurrency regulations have been limited to local legislators. Now that the technology exists to handle the global market, it is sure to usher in new discussions on creating global security token legislation in the future.