According to a recent announcement dated October 25th, tokenization platform Tokeny has officially partnered with Blocktrade.com. Both enterprises offer clients various benefits for security tokens, which they hope to combine in an effort to provide compliant issuance and secondary market trading throughout the industry.
How Tokeny and Blocktrade Mutually Benefit Each Other
Tokeny is a Luxembourg-based platform which offers the necessary services to tokenize securities. They aim to ensure complete regulatory compliance through their TREX infrastructure— Token for Regulated EXchanges— not merely during issuance, but in secondary market trading as well.
They have designed the platform with several features to bring transparency and accessibility to Security Token Offerings (STOs). When an investor accesses the platform, they are guided through the required steps for investing, which include KYC and AML compliance checks. They, therefore, have a system in place to prove the eligibility of investors.
Additional aspects of an STO can also be managed through the platform. These include dividends, voting processes, announcements, certain validations, and even corporate events.
Luc Falempin, Tokeny’s CEO, explained the benefits of partnering with Blocktrade.com:
“At Tokeny we enable the issuance of security tokens that are fully compliant and compatible with exchanges in the ecosystem. Listing tokens on a secure and regulated trading platform is of utmost importance to our clients and partnering with Blocktrade.com realizes this vision of tokenized securities trading.”
Recent activity by Blocktrade.com seems to highlight the accuracy of Falempin’s remarks. Just this past week, Blocktrade.com opened trading for its own token— BTT— which is claimed to feature “a seamless clearing and settlement system where [Blocktrade] can guarantee the efficient and fast settlement between members”.
The personnel behind Blocktrade.com were also pleased to announce the partnership. CEO Luka Gubo provided the following statement:
“We are proud to sign the agreement with Tokeny. They are an important partner who share our vision to change the future of finance and make the capital markets fairer and more accessible to everyone. Furthermore, we both work with strict compliance and we believe this will accelerate the path to the wider adoption of crypto assets.”
The two seem to go hand-in-hand. Tokeny is establishing a tokenization platform with an aim for compliant token offerings, while Blocktrade.com shares similar values in prioritizing compliance for secondary market trading.
What Partnerships Show about the Security Token Industry
To take things further, Tokeny is not the only enterprise to establish a partnership with Blocktrade.com. Just last month, Neufund— which claims to be Europe’s first security token issuance platform— has also announced an agreement to get the tokens issued through their platform available on Blocktrade.
While regulatory bodies scramble to establish clear guidance both in the US and beyond, Tokeny and Blocktrade.com have made clear statements by announcing such partnerships. The need for a transition from traditional securities to the tokenization of securities is here. The movement is not just beginning, it has already begun.
What do you think of the recent partnership between Tokeny and Blocktrade? Will such partnerships push regulatory bodies to provide a clear framework for security token compliance? We want to know what you think in the comments below.
Image courtesy of Tokeny and Blocktrade.com.