Ontario Securities Commission Permits TokenGX to Test Secondary Market Trading
Security tokens hold the ability to unlock a lot of cash in liquid assets; therefore OSC, (the Ontario Security Commission) has allowed a token funder to conduct Ontario's first regulated initial token offering. TokenGx and TokenFunder have received approval from the Ontario security commission, to test a secondary trading place for digital securities. All participating investors will finally be able to sell and buy private securities among themselves.
The secondary trading will be initiated on Freedom X, developed by TokenGX, and will be limited to sellers and buyers who reside in Ontario. The users will be verified as investors through the TokenGX's KYC.
The TokenFunder will now power the freedom X secondary trading market place with digital shares. They will reduce the cost of capital for Issuers Company compared to traditional platforms and also provide liquidity through the secondary trading marketplace. It will include critical management disclosure and excellent investor relations services to issuers. The platform will be suitable for both the investors and issuers on the TokenFunder platform; this is according to the co-founder Alan Wunsche.
The impact is to provide growing companies with the ability to raise capital through the tokens as they are treated as securities. The use of smart contracts will simplify trading and allow investors to trade and reduce costs actively. It will offer full board investor experience to retail and accredited investors.
The platform will define the next generation of trade and unlock enormous value in the private markets. It will ensure that assets are easily tokenized and tradable. It will bring a transformation in the entire blockchain technologies in capital markets.
The OSC's willingness to grant exceptive relief in the private market demonstrates a commitment to support innovation in the global financial market.