Home Altcoins News Blocktrade Enables Secondary Market for Security Tokens

Blocktrade Enables Secondary Market for Security Tokens

security tokens

Neufund, the equity fundraising platform that operates on the Ethereum blockchain blocktrade is legally binding.

Zoe Adamovicz, CEO and Co-founder at Neufund, stated, “We are really happy to work with Blocktrade.com. We both share the common goal of bringing much-needed liquidity to tokenized real-world assets, including private equity. Tokenizing securities is one, enabling their secondary trading is a whole different story. Neufund is the first tokenization protocol and primary market for securities that establishes a secondary market partnership with trading facilities such as Binance, BitBay, Malta Stock Exchange and now Blocktrade.com.”

Blocktrade.com is the trading facility from Liechtenstein.  This trading platform offers blockchain related financial instruments like crypto assets, and crypto traded indices.

Luka Gubo, CEO of blocktrade noted, “I personally look forward to working closely with Neufund, with the common goal of transforming how financial markets work. Building a whole ecosystem for the tokenization of assets is a major step toward the future of financial markets. We are especially impressed with Neufund’s approach to fully regulated equity token issuance, and the services they provide to issuers all while having a great team.”

Blocktrade.com will enable Neufund with access to a secondary market for security tokens. Therefore, the synergy between blockchain based investment assets into the current financial markets will be made possible.

The first Security Token Offering of Neufund is soon getting ready.  The offerings will be made to the primary market first.  Later it will be offered to the secondary market.

Security Tokens mitigate the risks for its investors.  This offering takes place during the Initial Coin Offering Stage.  This concept for first of all introduced by Polymath.  And, several real estate investment management companies like Leaseum Partners have taken to it. These security tokens are backed by either company revenue, profits, or tangible assets. These tokens can either be held, sold or traded.

The licensing and compliance requirements for the Securities Law will be resolved by making use of the Securities Token Account also known as the STO approach.

Even if there are issues with considering the tokens as an asset type, these tokens can be viewed as a form or e-money, a payment service or security that serves to be an alternative form of investment.

Security tokens are reliable because they are resilient against political instability.  Since it is backed by the power of the blockchain technology, it is not possible to penetrate into the blockchain network.  It is easily accessible, and the transactions are irreversible. Though the cryptocurrency concept is still in its formative stage, the coming in of regulations will replace the dollars.

The rules for the security comes under the purview of SEC.  The state and federal provisions when met make it an investment contract under SEC.  And, the best of all the token can be used as a payment instrument.

Read more about:
Share on

Sydney Ifergan

Sydney has 20+ years commercial experience and has spent the last 10 years working in the online marketing arena and was the CMO for a large FX brokerage.

Crypto newsletter

Get the latest Crypto & Blockchain News in your inbox.

By clicking Subscribe, you agree to our Privacy Policy.