Sharpe, a company that operates several businesses through its multiple units, including Sharpe Capital, Sharpe Ventures, and Sharpe Analytics, announced that it had invested in US-based security token trading platform OpenFinance Network (OFN). The move, which was conducted through Sharpe Capital, is meant to prove that Sharpe is dedicated to supporting a democratic and incentive-oriented ecosystem.
OFN claims to be the first Security Token platform regulated in the US. The company operates a blockchain protocol and platform for trading, clearing, and settlement of security tokens, which represent cryptocurrency-like, blockchain-based units of value that are backed by real-world assets, such as company shares, real estate ownership, and commodities. Security tokens are technically the same as utility tokens, which are released during initial coin offerings (ICOs). However, unlike the latter, these digital units are backed by real assets and can provide holders with ownership, voting rights or dividends, depending on the situation. Security tokens can also have regulatory compliance built-in, which makes them safer than ICO-based tokens.
OFN aims to change the traditional way of dealing with securities by leveraging the blockchain. The technology enables the development of a decentralized securities depository model that would ensure the seamless, transparent, and secure communication and interoperability across the various parties involved in the ecosystem.
Sharpe co-founder Dr. James Butler commented on the deal:
“Sharpe Ventures aims to invest in blockchain businesses with proven market traction and a dedicated team. OpenFinance Network offers both, they have an experienced and multiskilled team and are already a trusted player in the alternative asset industry since 2014. Moreover, OpenFinance Network is dedicated to creating a tokenized economy for universally inclusive value exchanges, opening up opportunities for all investors, traditional and crypto.”
OFN was launched in June of this year and managed to secure investments from several venture capital firms and tech-oriented companies. In August, Singapore-based crypto exchange operator Huobi announced that it had invested in the OFN platform, but it didn’t reveal the amount of the deal.