What is a security token?
One of the main criticisms that skeptics have leveled against cryptocurrencies is that they lack intrinsic value. That led to the rise of stable coins, which are cryptocurrency tokens backed by something of value. That something could be gold, diamond, or even land. Security tokens are essentially stablecoins. Their value is tied to the amount of an asset, for which they work as security. In other words, a security token represents your ownership of an asset.
What are security token exchanges?
If you’re the lucky owner of Bitcoin, Ethereum, Litecoin, or any other cryptocurrency, chances are you’ve made a trade. That trade took place on an exchange, of which there are many. Not very many trades deal in security tokens, however. In this article, we’ll take a look at some of the existing security token exchanges, as well as some upcoming ones.
BTF is a security token investment platform open to professional traders only. You need to earn over $200,000 per year to join BTF. You’ll also be asked to invest a minimum of $1,000 when you join.
tZero is a platform owned and run by the people behind Overstock. They have also partnered with Polymath to ensure a proper legal framework. Finally, tZero has also launched their TZRO cryptocurrency token.
Bancor is the company behind the Smart Token protocol, which is what makes cryptocurrency exchanges possible. Besides leading the way for security token trading, Bancor also has its cryptocurrency token BNT.
The Gibraltar Stock Exchange (GSX) is a regular stock exchange in Gibraltar. However, they will be launching the Gibraltar Blockchain Exchange (GBX) in 2019, which will allow you to trade security tokens.
The favorite US-based exchange Coinbase will also join the security token market in 2019. The company has recently acquired Venovate Marketplace Inc, Keystone Capital Corp, and Digital Wealth LLC to make this happen.
Another American company that has made acquisitions is Templum. They plan on entering the security token market next year and have bought up Liquid M Capital to facilitate the trading.
SharesPost has been dealing in online private equity secondaries since 2009. Today, they work with over 50,000 investors and 200 companies. Next year, they’re planning on launching a security token trading platform, and have made funding rounds to accomplish that goal.
The Australian Securities Exchange (ASX) has, much like GSX mentioned earlier, decided it wants a piece of the security token pie. Their platform will however not be available until 2021.
Since Malta is coined the blockchain island, it’s only natural for the Malta Stock Exchange to get in on the action as well. MSX has partnered with Neufund to launch their security token trading next year.
SIX Swiss Exchange is the most prominent stock exchange in Switzerland. They have announced this year that they are working on launching SIX Digital Exchange (SDX), which will deal in security token trading.
Finally, the London Stock Exchange will be joining the security token club in 2019. The exchange is collaborating with the Financial Conduct Authority (FCA) as well as two fintech companies; 20|30 and Nivaru.