Huobi Buys into Security Token Platform OpenFinance Network

Security token service OpenFinance Network has added digital asset marketplace Huobi to its list of financial backers.

Singapore-based digital currency exchange Huobi has made an investment in newly launched security token trading platform OpenFinance Network (OFN). The official announcement from US-based OFN did not contain the financial parameters of the deal, but Huobi’s investment was described as “significant.”

OFN went live at the end of June, launching in response to crypto interests that stretch beyond utility tokens and currencies. Given these developments in the market, Huobi’s decision to invest in the US venture is in line with “the momentum toward a more regulated security token market and growing confidence in the US market in particular,” according to the statement.

“We believe that security tokens are the future of finance, and that Huobi’s investment in our trading platform is reflective of the rising interest around the globe in this emerging financial ecosystem,” OFN chief executive Juan Hernandez said.

In addition to building a presence in the tokenized securities market, Huobi is also getting closer to realizing its ambitions for a US market entry. As previously reported, Huobi’s partner HBUS opened a San Francisco-based digital currency exchange in July, allowing investors to trade Tether, Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Dash, Qtum, and Civic.

Huobi’s strategic investment in OFN follows a decision by crypto asset manager Morgan Creek Digital to support financially the security token service. The partnership deal, which was signed on August 1, included the appointment of Morgan Creek Digital founder Anthony Pompliano as key advisor to OFN.

One of the world’s largest virtual currency exchanges, Huobi claims to serve users in over 130 countries. In a recent development, it set up a crypto marketplace in Australia that supports several coins as well as the Australian dollar.