TokenSoft, security tokens platform that focuses on the tokenization of traditional assets, has announced investing in a broker-dealer company registered with the Securities and Exchange Commission (SEC), now renamed as TokenSoft Global Markets, LLC. According to the press release, TokenSoft is now entitled to acquire 100% of TokenSoft Global Markets, subject to regulatory approval.
As a result of the deal, TokenSoft will enable issuers to choose whether to host a token sale themselves or work with a broker-dealer to manage the token sale on their behalf. As for the company being acquired, TokenSoft Global Markets will expand its range of services to custody solutions, referrals to exchanges, and private placements among others.
As the announcement states, those who choose to tap the expertise of a broker-dealer will be able to turn to TokenSoft Global Markets for guidance and hands-on support at every step of the sale process.
Mason Borda, CEO of TokenSoft, commented:
“As a result of rapidly growing interest in the security token market, we have been inundated with requests for broker-dealer support services. With this investment, we are building a one-stop-shop for digital asset issuance and management — enabling us to expand our security and compliance support to every stage of a digital asset’s lifecycle.”
Lawson Baker, Head of Project Zero at TokenSoft, said:
“The new services offered by TokenSoft Global Markets will be fully integrated into our high touch customer experience. We are committed to providing our clients with everything they need to participate in the future of security tokens, and TokenSoft Global Markets is a reflection of that commitment.”
TokenSoft Partners with Coinbase to Offer Alternative Solutions
TokenSoft provides a range of technology and security products for the sale, issuance, and management of digital assets. The company offers a new fundraising solution that could soon overtake initial coin offerings (ICOs). Recently, the company took part in funding round for crypto data startup Nomics, where $3 million has been raised.
Before the announcement about acquisition, TokeSoft partnered with Coinbase, with a view to provide an alternative custody solution for clients. Now, STO issuers can choose between self-custody and third-party custody, in which Coinbase Custody is involved.
Announcing integration between TokenSoft Global Markets and Coinbase Custody to provide security token issuers access to institutional-grade security, and an intuitive and easy-to-use interface for storing and receiving funds. Read more: https://t.co/0FbGpPOM6l
— TokenSoft Inc. (@TokenSoftInc) December 20, 2018
For those who prefer Coinbase, the exchange will handle custody, insurance and auditable control of their digital assets, while Tokensoft will handle issues of compliance, regulation, distribution, and exchange relationships. Coinbase Custody will be made available through TokenSoft Global MarketsTokenSoft’s, a new regulated broker-dealer affiliate registered with the Financial Industry Regulatory Authority (FINRA).
Coinbase Custody, launched in May of this year, provides a crypto asset storage service for high net-worth investors or institutions with over $10 million in deposits. Earlier, Coinbase Custody operated only in New York State, but now it is expanding its coverage to such European jurisdictions as Andorra, Gibraltar, Guernsey, Iceland, the Isle of Man and Lithuania, which means that customers in these locations will be able to gain a full access to the Coinbase retail service, using the website and mobile apps for trading.