Bitfinex, a popular cryptocurrency exchange, has announced the launch of a new trading platform centered on Security Token Offerings (STOs).
In a recent announcement, Bitfinex stated that the new platform will operate in accordance with Kazakhstan’s financial laws, as outlined by the Astana Financial Services Authority (AFSA).
Bitfinex Securities Ltd, the STO exchange, has been launched as part of the company’s efforts to support the development of the global financial industry.
Features and Offerings of Bitfinex Securities
Bitfinex Securities, like other digital asset exchanges, will be open 24 hours a day, seven days a week. Notably, the company has implemented technologies to lower transaction costs, increase efficiency, and improve the success rate of capital raised on the platform.
Investors will gain access to an international securities trading market via the STO platform.
It will also allow interested investors to diversify their portfolio by providing access to a diverse range of financial products, such as equities and bonds.
Security token issuers can also use the newly launched platform to raise capital by offering tokenized security in a bid to raise capital, according to the announcement.
According to Paolo Ardoino, Chief Technology Officer (CTO) at Bitfinex Securities Ltd, the STO exchange will help the trading platform become the most liquid of its kind globally, adding:
“Bitfinex Securities Ltd. is a regulated platform that serves small and medium-cap companies that are currently underserved by existing, inefficient capital markets.”
Countries with Restricted Access
Although the exchange will be governed by Kazakhstani law, investors from all over the world will be able to trade various tokenized securities publicly.
According to a legal statement issued by Bitfinex, investors residing in the United States, Switzerland, Canada, the British Virgin Islands, Austria, Venezuela, and Italy are not permitted to use the platform.
Similarly, other countries embargoed by the US, such as Iran, Cuba, and Kazakhstan, will be denied access to the exchange.
Tokenized Securities are becoming increasingly popular.
Security tokens are investment contracts that represent ownership of real-world assets such as real estate and digital artwork.
Several crypto-related companies have flocked to the market to offer various tokenized securities, making the asset class increasingly popular among investors.
Traditional financial institutions have taken note of the high demand for tokenized securities, and have joined crypto-related companies in issuing their own security tokens.
As previously reported, Swiss-based Union Bank AG became the first regulated traditional financial institution to issue security tokens under Liechtenstein law earlier this year.
In the same vein, Societe Generale, France’s third-largest bank, issued its first structured product as a security token on the Tezos blockchain in April.