Following a long beta phase and feedback from the community, OpenFinance Network (OFN), a trading exchange for tokenized securities, is launching the first regulated security token trading platform in the United States.
The compliant offering is a clearing and settlement platform based on the blockchain that lets companies raise capital with security tokens. It also provides a secondary market liquidity for ICO tokens that are offered and sold as securities.
OFN said Ethereum-based BCAP tokens would be among the first assets available to trade at launch. The token represents a fractional non-voting economic interest in Blockchain Capital’s tokenized venture capital fund focused on digital assets.
The platform also operates as an alternative trading system, which is a trading venue that is not regulated as an exchange but operates by matching the buy and sell orders of its subscribers.
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The venture capitalizes OpenFinance’s regulatory approval and aims to create a way for companies to tokenize equity and issue it on a blockchain without running afoul of regulatory obligations.
Investment from Huobi
OpenFinance already offers a platform that manages the entire lifecycle of blockchain-based digital assets, including origination, issuance, exchange, settlement, and redemption. The site claims it will enable all operations in a regulatory compliant manner. Its client roster includes banks, brokerage houses, custodians, and transfer agents serving the alternative markets.
The US-compliant startup has recently announced partnerships with a list of prominent players in the blockchain industry as it seeks to capture a portion of a huge market class that is waiting to be tokenized. Earlier this year, it received a significant investment from Huobi, one of the world’s largest cryptocurrency exchanges.
Commenting on the news, Juan Hernandez, CEO of OFN, said: “2018 is said to be the year of security tokens, but, for us, this is only the beginning,” said Hernandez. We are committed to supporting all levels of investors in participating in this burgeoning alternative asset ecosystem. As we continue to partner with more security token assets, we are able to offer people more opportunities for wealth generation.”