BnkToTheFuture, a Hong Kong based fundraising platform for fintech and blockchain companies, is gearing up to enable security token offerings (STOs), Coindesk reports.
The platform says it will place an undisclosed stake in crypto consultancy firm, Diacle, to build a shared security token advisory and investment service, and it anticipates a wave of market interest in the emerging asset class, CEO Simon Dixon told CoinDesk: “We get an average of 45 applications per week from fintech and crypto companies seeking funding. 18 percent of these are now looking at security tokens.”
According to the interview with Dixon the platform will act as a hub where qualified investors are able to participate in equity funding rounds for firms like Coinbase and Kraken, and it hopes that it will also help to attract traditional investors who are less familiar with digital assets.
Dixon said, “The big challenge for the industry is investors want to invest in security tokens because they offer additional liquidity. But the liquidity is not there yet, as the asset class is very new.”
Currently, BnkToTheFuture has an existing network of 87,000 qualified investors. Dixon also commented that the new service will help issuers stay compliant with securities laws. He also explained that London-based Diacle’s experience in the tokenization process would be a great asset and it will help on-board UK investors.
Coindesk said, “The STO market is expanding fast, albeit from a low base. There were two STOs in 2017, 25 in 2018, with 87 projected in 2019, according to Autonomous Research. The total value of the security token market will reach to $2 trillion by 2030, said Chain Partners research.