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NEO and Liquefy Form Partnership to Issue Security Tokens
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NEO Global Development (NGD), NEO’s investment arm, has just announced it is investing and partnering with Liquefy. The purpose of the collaboration is to develop security tokens on the NEO network.
Security tokens are finally coming to the NEO blockchain. NEO Global Development (NGD) is now actively investing in fostering a security token ecosystem. Working with Liquefy, the blockchain is hoping to leverage its future NEO 3.0 update to make its network well-suited for security tokens.
One of NEO’s strengths is that it focuses heavily on digital identities, done through NEO ID. It is looking to authenticate identities using smart contracts, a core component which will be strengthened by NEO 3.0
Adrian Lai, CEO of Liquefy, said the following the public announcement:
“It is important to develop a security token standard while the industry is still in its infancy. What separates NEO apart from other public blockchain protocols is the integration of NeoID, which allows KYC, AML and accreditation status to be stored on-chain while maintaining privacy.”
Additionally, NEO allows the issuer to monitor and maintain records while being compliant in multiple jurisdictions.
“This allows issuers to monitor and maintain records of all transactions in the secondary market to remain compliant in the multiple jurisdictions. We are excited to welcome NGD as an investor and a partner to develop a security token ecosystem together and bring innovation to the financial market.”
Currently, the KYC and identification process of security token issuers is complicated and far too segmented. Ultimately, Liquefy is attempting to solve a critical problem in the industry by offering an end-to-end solution for issuers.
The news is the first time NEO is openly working on security tokens. NEO Global Capital previously held a meetup on security tokens back in 2018. Ontology Network, partnered with NEO, is also developing their own security token standard.
Other blockchain-based networks, like Stellar and Ethereum however, currently have the advantage, having worked on such projects for close to a year now.
Do you believe NEO could be a network for security tokens? Let us know your thoughts in the comments below.
Image courtesy of Sebfor.
Tim Fries
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
