The platform becomes the first fully regulated security token trading platform in the US.
OpenFinance Network (OFN), a Chicago-based trading and settlement platform for the digital asset industry has become the first in the US to offer full security token (STO) trading.
OFN has moved from beta to full functionality trading according to the blog published earlier last week by the firm. The platform is regulated under US laws.
According to the blog:
An experienced and trusted player in the alternative assets space since 2014, OFN developed its regulated and efficient trading platform to make security token trading more liquid and accessible.
The platform claims to serve as a conduit between issuers, investors, and industry stakeholders and offers streamlined access to liquidity and efficient asset transfers.
Access to the Platform
The OFN platform is available to accredited and non-accredited investors in the US and other geographies around the world. The firm’s investor passport application serves as the initial verification process that allows participation on the platform.
One of the initial security tokens that will be available for investors is Blockchain Capital (BCAP). BCAP is a tokenized venture capital fund for digital assets. The firm is one of the first to issue a compliant STO offering.
BCAP security tokens are powered by a protocol built by Securitize, a platform that issues and manages digital securities on the blockchain. The protocol facilitates these digital securities to be traded on global exchanges in a compliant way.
Reactions from Stakeholders
Juan Hernandez, CEO of OFN, said:
2018 is said to be the year of security tokens, but, for us, this is only the beginning. We are committed to supporting all levels of investors in participating in this burgeoning alternative asset ecosystem. As we continue to partner with more security token assets, we are able to offer people more opportunities for wealth generation.
Brad Stephens, Co-Founder and Managing Partner of Blockchain Capital, commented:
As creators of the world’s first security token, the BCAP, we are encouraged by the growth of the security token market and related infrastructure. We are excited to be partnering with OpenFinance Network that is enabling liquidity of security tokens in a regulatorily compliant way.
Carlos Domingo, Co-Founder, and CEO of Securitize added:
Security tokens, or digital securities, will only begin to make a meaningful contribution to the financial landscape when compliant trading can take place on a wide scale. We are proud to have partnered with OpenFinance Network to make this a reality.
OFN has partnered with some of the leading players in the blockchain and cryptocurrency space including Huobi, Securitize, Atomic Capital, Harbor, Polymath, Securrency, and TokenSoft. The team at OFN brings over 50 years of combined experience in financial markets, exchange technology, and finance law.
With the hype around ICOs fading away in 2018 and being gradually replaced by STOs the launch of platforms like OpenFinance signals maturing of the industry.
Do you think that security tokens are a safer option for investors than ICOs? Let us know in the comments below.
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