Fintech investment platform BnkToTheFuture has acquired Altcoin.io, a San Diego-based cryptocurrency decentralized exchange.
BnkToTheFuture, which is based in Hong Kong and facilitates investments in fintech and blockchain startups, will tap into Altcoin.io’s proprietary trading software to launch a non-custodial security tokens platform, which is slated to launch in 2020.
Non-custodial exchanges like Altcoin.io are also an option for the crypto community and have become quite popular as the environment allows for a higher degree of anonymity and security.
“Altcoin.io has an impressive list of technological achievements under their belt, but what set them apart was their commitment to working in tandem with this dynamic regulatory landscape,” said Simon Dixon, CEO of BnkToTheFuture.
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BnkToTheFuture intends to utilize Altcoin.io’s technical experience and regulatory approval to capture the growing security tokens market while allowing users to exchange crypto assets peer-to-peer (P2P). The company operates as an investment hub for industry startups and says it has backed big firms like Coinbase, Circle, BitStamp, BitFinex, Shapeshift, Ripple Labs, Kraken, among many others.
Decentralized platforms gain traction
To date, BnkToTheFuture claims to have raised more than $750 million through funding rounds for 120 different fintech companies. The company spent its first few years based in London then relocated to Hong Kong in 2015 and is currently registered with the Cayman Islands monetary authority.
The new security token exchange will feature a non-custodial layout which allows users to retain control of their own funds, an approach that is seen as less vulnerable and more transparent than centralized exchanges. It will be used to transfer and trade blockchain assets while eliminating administration tasks through smart contract rules and thus, speed transaction settlement.
With the rising limitations of the centralized crypto exchanges, many old blockchain players are now developing decentralized platforms to cope up with the market competition. Major players have earlier launched native decentralized platforms and were joined by many market counterparts.
However, the picture is not always rosy. One example was the launch of Waves DEX last year when hackers hijacked both the exchange website and the company’s main site to phish for users’ personal wallet information.