South Korea-based digital asset exchange, Bithumb, has reportedly signed an agreement with a US-based fintech company called SeriesOne – in order to launch a securities token exchange.
According to local news outlet, the Yonhap News, the deal was finalized on November 1st and it involves leveraging SeriesOne’s expertise and experience in crowdfunding to help Bithumb “ramp up efforts to develop into a global financial firm.”
Both companies expect blockchain-based “asset tokenization” to become a legitimate global industry in the next few years.
Security tokens are similar to traditional securities as they allow their holders to buy physical goods and services – while also promising returns on their investments.
One Root Stock (ONR) Backed Decentralized Exchange
Sources working with Yonhap said that SeriesOne is planning to introduce the new Bithumb-backed securities token exchange in the US – during the first half of 2019. As part of the deal, Bithumb has agreed to provide the funds and technical support required to deploy and operate the exchange.
Notably, Bithumb is also planning to launch a globally accessible decentralized crypto exchange (DEX) through a partnership with blockchain-focused firm, One Root Network (RNT).
One of RNT’s main product offerings is a token transaction protocol known as R1 – which allows users to separate the order matching process from execution.This is reportedly a more secure method of trading tokens and it also improves order matching efficiency.
Changelly Helps Bithumb Recover Stolen Funds
Bithumb’s plans to launch a securities token exchange have been announced shortly after Hong Kong-based digital asset exchange, Changelly, revealed that it helped the Korean exchange recover part of the $30 million worth of tokens it lost due to a hack in June.
In total, several crypto industry participants have helped Bithumb recover $14 million worth of tokens after the damaging security breach. Changelly said it managed to assist Bithumb in recovering 1,063,500 XRP tokens, an amount valued at around $585,000.
Many Security Token Projects Underway
As CryptoGlobe reported in July, crypto exchange OKEx had announced its plans to launch a new platform for security tokens in Malta.
OKEx has partnered with the island nation’s stock exchange to help it develop a platform specifically for listing and trading security tokens. It is expected to go live in Q1 2019.
Also as covered, crowdfunding platform Indiegogo hosted its first initial coin offering (ICO) for an asset-backed security token that allows investors to acquire shares in a luxury resort located in Aspen, Colorado.
