Tezos (XTZ) Blockchain Adds More Security Tokens with TokenSoft Partnership
The security token trend still continues, though at a slower pace in comparison to unrestricted utility tokens.
Tezos (XTZ) will open its blockchain for fully legalized security tokens, through a partnership with TokenSoft. The move adds another possibility for an alternative, more innovative blockchain for minting and distributing security tokens.
The Tezos blockchain offers a form of governance through known “bakers”, and thus potentially higher transparency.
“We first started working with the Tezos blockchain over a year ago, we’re excited to take our services to the next level,” said Mason Borda, CEO of TokenSoft. “With the introduction of the Tezos multi-signature and FA1.2 smart contracts, we now have the key ingredients to provide our institutional grade services on the Tezos blockchain.”
The Tezos network has forged previous partnerships for issuing and storing security tokens. Securitize, a security token company, used the Tezos network to tokenize real estate in Aspen for Elevated Returns.
The Tezos network offers higher security in its smart contracts, as well as multi-sig cold storage solutions. The adoption of blockchain-based assets has been slowed down in the past years by the problem of secure storage, and the difficulty of ensuring the assets will not be stolen, lost, or locked away.
Just days ago, Latin American investment bank BTG Pactual chose Tezos for its tokenization process of distressed real estate. Dalma Capital, a Dubai-based fund, will also use Tezos to issue tokens based on real estate and football clubs.
Still, security tokens are somewhat slow to pick up, and are limited among institutional owners. The secondary trading of security tokens is also limited, and listings are rare.
The XTZ digital asset trades around $1.18, still depressed and down from a recent high above $1.70. The Tezos blockchain is currently building its community and adding distributed apps and smart contract functionalities, but the XTZ price has failed to move to higher valuations and compete with Ethereum (ETH). Other networks offering security tokens include Polymath and EOS.