New York-based blockchain startup Templum has inked an agreement with Liquid Markets Group to buy its broker dealer and alternative trading system (ATS), Liquid M Capital, as the startup is hoping to develop both primary and secondary markets around digital tokens.
Templum is already affiliated with Liquid M Capital as both entities joined forces to launch a new regulated platform for token trading focused on the US market. The digital asset platform, known as Templum, will offer both primary issuance of ICOs and the secondary trading of crypto coins as securities through Liquid M Capital’s ATS.
Switzerland-based trade.io also announced in December that it has entered into a memorandum of understanding to negotiate the terms for the acquisition of a New York City based broker/dealer.
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Effectively, both firms hope to see its regulated systems attract more professional and institutional investors to a market that has raised more than $4 billion in 2017.
The acquisition of the broker dealer will be subject to regulatory approval by the US regulators and other customary terms.
The action allows Templum to utilize the acquired firm’s capabilities to create a turn-key solution for the initial issuance and secondary trading of ICOs as unregistered private securities. Templum’s proprietary technology combined with Liquid M Capital’s ATS will provide ICO investors with the first of its kind platform for the sale and secondary trading of digital tokens.
Commenting on the news, Vince Molinari, CEO of Liquid Markets Group, said: “The combination of Templum’s team, technology prowess, and capital with Liquid M’s Alternative Trading System, Quotation Bureau, and Qualified Matching Service for digital assets as securities will position Templum to drive the evolution of this asset class. We believe Templum’s platform, standardization, and commitment to investor protection will make Templum the leader in facilitating the offering and secondary trading of digital assets offered as securities.”
Chris Pallotta, founder and CEO of Templum, added: “We are pleased to bring together this group of distinguished former regulators, financial services professionals and technologists with a wealth of experience in the regulation of securities, digital assets, trading and technology expertise to our Advisory Board to collaborate on emerging issues in our space, and to advise our company on the development of our platform and processes.”