DESICO Security Token Project Partners with Blocktrade
DESICO, one of the first security token platforms for the European market, plans to expand its presence through a partnership with Blocktrade.
DESICO, a platform for issuing and trading tokenized securities, announced on Monday a partnership deal with tokenized assets trading facility Blocktrade.
“This partnership will enable cooperation to facilitate widespread adoption of Tokenized Assets in Europe as well as synchronization of platforms, so that Tokenized Securities, issued via DESICO, could be tradable via Blocktrade,” DESICO said.
In recent months, there has been only a tentative push to trade tokenized securities, but launch platforms and marketplaces are emerging all the time, suggesting growth for the sector in 2019. European projects such as Extauri are the first to propose the new type of digital assets. For now, the offerings are somewhat limited, as in the case of the Neufund STO, which was limited to large-scale accredited investors to avoid personal financial risk for retail investors.
“The 2019 is set to be the year of Tokenized Securities, therefore we are happy to partner up with Blocktrade which we view as one of the pioneers of compliant and transparent global Tokenized Securities market,” DESICO co-founder and CEO Laimonas Noreika commented.
“The tokenization of assets is still in its early stages and this partnership strengthens our joint position both in attracting businesses that plan to issue tokenized securities as well as raising general awareness about this asset class,” Noreika added.
DESICO launched its own security token offering (STO) in November but faced a short delay. In December, the company announced it was ready to onboard businesses willing to issue and trade security tokens.
For now, the issuance of new tokens is relatively slow, and there are no extensive statistics to show how many projects have switched from an intended initial coin offering (ICO) with a utility token to the new model. Performing an STO is a more involved process, requiring regulatory compliance and a more robust customer screening process. Various limitations may apply to selling security tokens due to regional regulations.
DESICO, a decentralized system for security ICOs, is endorsed by Lithuania’s finance ministry. The platform makes it possible for third parties to have their business traded on secondary markets without going through a traditional stock issue.