Cryptocurrency exchange Bitfinex rolled out a Kazakhstan-regulated STO platform that will give investors access to blockchain-based equities and tokenized securities so let’s find out more in our latest cryptocurrency news today.
Popular exchange Bitfinex rolled out the new platform and announced the launch of the new securities token offerings trading platform and it said in an announcement that the new platform will operate under the financial laws of Kazakhstan as provided by the Astana Financial Services Authority. The STO exchange or Bitfinex Securities LTD has been launched as a part of the company’s efforts to support the development of the global financial industry. Similar to the current practices in teh crypto space, Bitfinex Securities will operate on a 24/7 basis and the company even deployed technologies to reduce teh transaction costs, enhance efficiency and optimize the success rate of the capital raised ont the platform.
The new STO platform will allow users to get access to the international securities trading market and will give interested investors the opportunity to diversify their portfolio by providing access to w wide array of financial products like bonds and equities. Security token issuers can take advantage of the newly launched platform by raising capital via the offering of the tokenized security in a bid to raise the capital as the announcement added.
Paolo Arduino as the Chief Technology Officer at Bitfinex Securities LTD said that the STO exchange will contribute to helping the trading platform become liquid and added:
“Bitfinex Securities Ltd. provides a regulated platform serving small and medium-cap companies that are currently underserved by existing, inefficient capital markets.”
The cryptocurrency exchange will operate under the laws of Kazakhstan and the investors from different parts of the world can trade various tokenized securities publicly. The investors residing in the US, Canada, Switzerland, Austria, Italy, Venezuela, and The British Virgin Islands are prohibited from using the platform according to the legal statement issued by the exchange. Other jurisdictions under embargo by the US include Cuba, Iran, and Kazakhstan which will also be denied access to the exchange. The security tokens are investment contracts that represent ownership of real-world assets like real estate and digital artwork and these asset classes became popular among investors with a few crypto-related companies flocking to the market to start offering various tokenized securities.
The high demand for tokenized securities didn’t go unnoticed by the traditional financial institutions as these companies joined the crypto-related companies by issuing their unique security tokens. The Swiss-based Union Bank AG became the first regulated traditional financial institution to issue the security tokens under the laws of Lichtenstein. France’s third-biggest bank Societe Generale also issued its first structured product as the security token on the Tezos blockchain.
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