By
Godfrey Benjamin
April 23rd, 2024
Securitize, that is supported by Coinbase, and OTCXN are joining forces to streamline the process of issuing and trading security tokens.
As it has become known, Securitize, a security token start-up that is supported by Coinbase, has entered in a partnership OTCXN, which is a blockchain-powered capital market infrastructure organization.
In the framework of this collaboration these two startups are going to create services that will enable institutional traders to deal with tokenized crypto assets and avoid settlement risks associated with traditional systems.
All-in-One Solution
As it is reported, the companies want to offer a new all-in-one solution aimed at facilitating the issuance and trading of securities tokens.
Thanks to the collaboration of Securitize, and OTCXN and the technologies that both startups are going bring to the project, firms all over the world will get access to tokenization and selling of securities.
And it’s expected that these services will enjoy high popularity as the interest to such opportunities from the side of companies is actively growing today.
The team behind the project has disclosed that they will use the ERC-20 standard to build the security tokens on the Ethereum blockchain and that smart contracts will enable them to ensure total compliance.
How It Will Be Organized
The companies have shared the roles the following way. Securitize will be responsible for creating the security tokens and their initial issuance. And OTCXN’s task will be to provide all necessary infrastructure to organize secondary market trading of the digital assets.
OTCXN founder and CEO Rosario Ingargiola explained:
“Under the OTCXN model, issuers and investors are able to trade these assets with anyone on the network, no matter what blockchain they are natively issued on, what custodian they use or what exchange client orders are sitting on.”
He also added that the blockchain ledgers that they will use for the realization of this initiative really differ from the traditional ledger system. Moreover, transaction settlement will take place on-chain, in real time, with cryptographic provability.
Both companies have also highlighted the most important benefit of their offering. “You don’t have to trust us since we are not the custodian of any assets, nor the counterparty to any trades,” said Ingargiola.
The same idea was expressed by Carlos Domingo, Securitize CEO and co-founder. According to him, while digital representations will be traded on OTCXN’s system, companies will still own the securities themselves.
Though it is widely known that the infrastructures of both companies, as well as their partnership, have been built in full compliance with all regulatory requirements, the firms have informed that now they need to wait for an approval from regulators in order to launch their service in different regions.
At the moment there is still no precise information on the timeline when these approvals may be received. Nevertheless, it is expected that it will happen quite soon.
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