Institutional adoption for the Security Token Industry
After the many painful years of stagnant development in the STO industry, the STO industry is finally seeing the light at the end of the tunnel. In the past year or so, we have seen a large influx of investment and large institutions making their way into the security token market.
As mentioned in previous articles the STO industry started booming in 2017 with multiple token issuance platforms issuing security tokens globally. This phenomenon was short-lived as people slowly came to realize that just issuing a security token is not going to cut it. There were no trading venues or licensed custodians to safe keep these assets.
However, this has all started to change in 2021. Large traditional financial institutions have started investing in STO infrastructure globally.
Some recent articles below, to give some examples of these big boys entering the market:
Brokers & Exchanges
- Securitize Raises $48 Million in Series B Capital Co-Led by Morgan Stanley Tactical Value and Blockchain Capital
- DBS launches digital bond issuance platform to ease capital markets access
- SINGAPORE Exchange (SGX)-backed digital securities platform iSTOX has raised US$50 million in Series A funding
- UOB to pilot digital bond offering on Marketnode
Digital Asset Custodians
- State Street announces the launch of digital asset division
- Nomura-backed digital asset custodian Komainu raises $25 mln
- Citi has been selected by BondEvalue Pte Ltd to act as a custodian for the underlying bonds traded on its digital exchange as fractionalized assets (called “BondbloX”)
- Deutsche Bank Securities Services in Singapore and Hashstacs Finalize PoC on DLT for Sustainability related Digital Bonds
These are just a few examples of recent investment into the STO space. The industry is developing rapidly and the notion of STOs being dead is completely false as shown from all the underlying activity in the market this year. The size and amount of institutional investment are signaling a change of winds in the STO market and we expect to see exponential growth in the industry moving forward.
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IX Swap is the last infrastructure piece needed to bring life to the security token/tokenized stock industry. IX Swap will revolutionize the STO/TSO industry and is the liquidity solution for all STO/TSO exchanges globally, bridging the gap between CeFi and DeFi.