SPiCE VC, a venture capital firm, announced today that its security token, which it launched in March, will trade on the OpenFinance Network (OFN). This marks the first asset of its kind to list on a US regulated trading platform.
Speaking to Reuters, Ami Ben David, the co-founder and managing partner of SPiCE VC said that non-US investors would be able to trade their SPiCE tokens from today. However, due to a 12-month restriction for US accredited investors, they will have to wait until March of next year to trade their tokens.
Security tokens, which are digital currencies backed by a tradable asset, have been growing in popularity. In recent times, more and more companies are taking advantage of blockchain and distributed ledger technology (DLT) to create regulatory-compliant tokes.
In an interview late last week, Tal Elyashiv, co-founder and managing partner of SPiCE VC told Reuters: “Investors in SPiCE VC are not locked in for 10-15 years. They invest in tokens. Think about them as digital contracts.
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“They’re securities and they give token holders economic rights to the performance of the portfolio. So when there’s an exit, the net proceeds get distributed to all token holders in a pro rata way.”
According to SPiCE VC officials, the venture capital firm will list more security tokens on OFN in the future. However, it does not specify when or what tokens it will list.
OFN partners with Huobi
OFN is a trading exchange for tokenized securities. Since 2014 the company has facilitated the trading of alternative assets on its platform. The OFN platform manages the entire lifecycle of blockchain-based digital assets, including origination, issuance, exchange, settlement, and redemption.
Earlier this year, Finance Magnates reported that one of the world’s largest cryptocurrency exchanges, Huobi, has made a ‘significant investment’ in OFN, with the purpose of the partnership to provide Huobi with exposure to new markets as it continues its expansion overseas.