Coinbase-Backed Securitize And OTCXN Partner To Unveil Securities Token Issuance And Trading Service
Securitize And OTCXN Join Forces To Unveil Securities Token Issuance And Trading Service
Securitize, a platform that claims to be focused on facilitating compliant, blockchain technology-based digital securities issuance and liquidity, has allied with the OTCXN, a capital markets trading infrastructure firm powered by distributed ledger technology (DLT), to launch an all-in-one solution targeted at streamlining the issuance and trading of securities token, according to reports on February 19, 2019.
A New Dawn For Security Tokens?
Per sources close to the development, Securitize, and OTCXN has come together to create a digital securities trading and issuance service that would take advantage of the former’s securities compliance platform and OTCXN’s custodial ledger system to allow firms across the globe tokenize and sell securities.
According to the team, the security tokens will be built upon the Ethereum smart contracts blockchain and they will all operate in total compliance with the laws in each client’s jurisdiction.
While the Securitize platform will be in charge of creating the security tokens and its initial issuance, OTCXN will provide infrastructure to facilitate secondary market trading of the digital assets.
However, the team has hinted that the actual security tokens would not be traded, but a separate token representing the securities will be exchanged.
“Under the OTCXN model, issuers and holders of the securities are able to seamlessly trade these assets with anyone on the network, no matter what blockchain they are natively issued on, the custodial service they use or even the exchange client orders are sitting on,” said the founder and CEO of OTCXN, Rosario Ingargiola.
He also noted that:
“The distributed ledgers that make up the solution we provide to custodians are just another kind of ledger system which becomes, for assets digitized and being traded on our network, the real-time golden source of truth. Transactions are settled atomically in real-time, on-chain, with finality and cryptographic provability.”
Crypto Custodial Services Will Store The Securities.
At a time when securely storing bitcoin and altcoins has become a significant issue no thanks to the activities of hackers, the team has stated explicitly that highly reputed custodians such as Kingdom Trust, Prime Trust, and others, will help holders the tokenized securities keep them securely.
Although the partnership, as well as the infrastructures of both firms, are in excellent conditions, they have however stated that they are still waiting on regulators in different regions to approve their applications before going live.