The world's second largest stock exchange, NASDAQ, is seeking to create a security token offering (STO) platform that will make it easier to conduct token sales to raise funds. This will allow not only to begin issuing investment tokens during ICOs for various projects, but also to ensure their sale.
According to the latest insider news, NASDAQ has begun work on creating a security token platform based on blockchain technology.
Security token offerings, unlike ICOs, are intended to fit within the parameters of current US securities laws. Essentially, STOs are similar to ICOs, with the difference that the Securities and Exchange Commission (SEC) registers the STO and recognizes it as a regulated instrument. Security tokens are considered as tradable assets from which investors can profit in the future. The launch of such a platform will enable NASDAQ to avoid unregulated ICOs and not risk investor money. And the capabilities of blockchain technology will make the issuance and sale of such securities more reliable, thereby eliminating certain risks.
The new platform will issue tokenized assets and provide the opportunity for accredited investors to participate in ICOs. In this market, Nasdaq will most likely compete with projects such as Polymath, tZero and TrustToken. Details of the upcoming project have not yet been announced; it is only known that it is at the negotiation stage. Among the potential partners is the startup company Symbiont, specializing in smart contracts, which previously successfully collaborated with Alibaba.
Over the past six months, NASDAQ has a positive assessment of digital currencies and is eyeing the cryptocurrency market. The exchange recently released a beta version of a tool for analyzing and forecasting digital currency rates. In late September, Nasdaq announced its future acquisition of Swedish exchange technology company Cinnober, which is trying to make investing in digital assets accessible and easy. In addition, NASDAQ is keeping an eye on the European Fintech Cinnober and even plans to acquire it for $190 million.
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