Token Up, a new series by Neufund
A comprehensive guide to the security token ecosystem
With the advancement of technology, the economics of ownership and value are being re-designed.
At the innogy Innovation Hub we believe in a future that is decentralized and enabled by machine-to-machine transactions. Therefore, we support startups which will enable this vision in the future, like Neufund, who is developing a platform to democratize equity fundraising on the Ethereum Blockchain via the tokenization of equity.
Alex Molé from Neufund’s team has created a new series analyzing the emerging security token ecosystem and its competitive landscape, and we think you should know about it!
Here’s a sneak peek into the Token Up series:
Written in a succinct and down-to-earth style, Alex’s first article explains what security tokens are, the benefits they offer today’s outdated system, why you should care, and what the market opportunity looks like.
Security tokens, or tokenized securities, are just like traditional investments –except a lot smarter and suited to the new digitized, automated world. They represent ownership in an underlying asset (e.g. a stock certificate, a bond, a building!) but have their own “brain”. Beyond 24/7 trading and programmable shareholder governance, security tokens will also dramatically increase liquidity, while reducing costs and market friction and settlement times. Furthermore, tokenized assets also offer fractional ownership with ease: by their nature, tokens are infinitely divisible.
So, why should you care? As Alex points out, tokenized securities represent a vast opportunity: the market for these digital assets is projected in the trillions. How? Well, any traditional asset can be tokenized. This means that every stock trading on the NASDAQ (combined $10 trillion market cap), or the global real estate market (worth hundreds of trillions), is waiting to benefit from the security token revolution.
Up #2 Security token exchanges
Alex’s second article digs deeper into the newly created world of security token exchanges. Exchanges are the main way to provide liquidity for tokenized assets, and hence can catalyze their widespread adoption.
Alex mentions that,
“with every week that passes, a new security token exchange is born”
And he’s right. There’s a mix of new entrants, established crypto exchanges, global stock exchanges and large corporates taking a step into this space. He mentions some examples like the Gibraltar Stock Exchange, OpenFinance Network, tZero, Templum, Sharespost, Coinbase, the Australian Securities Exchange, the London Stock Exchange, and the SIX Swiss Stock Exchange who have either created an entire new company dedicated to security token exchanges, or expanded their offering to cater to the needs of digitized assets.
Last but not least, his article highlights the Neufund’s collaboration with MSX, an innovation vehicle of the Malta Stock Exchange (MSE), as well as a partnership with Binance. The aim of both ventures is to create a global, decentralized and EU-regulated stock exchange for listing and trading tokenized securities. Both of these partnerships are designed to provide investors significant liquidity when trading Equity Tokens issued from Neufund’s platform.
Look out for more great Token Up posts soon!
🎙️ 🎙️ Did I mention the TokenUp Podcast? Find an audio explanation of every post in the series here!
➡️ To continue learning about security tokens don’t forget to follow Neufund’s publication
👨💻 Find Alex on on LinkedIn, Twitter and Medium.
👏🏼 If you enjoyed reading this piece leave us a clap or comment below. We are curious to hear your thoughts!
📩 If you are a startup working on a blockchain, IoT or energy venture, please feel free to contact us (andreacarolina.soto@innogy.com)
