Crypto Exchange Bithumb Teams With SeriesOne To Open Security Token Exchange
South Korean cryptocurrency exchange Bithumb has signed an agreement with crowdfunding platform SeriesOne to create a compliant security token exchange in the US.
Based in Miami, Floriada, SeriesOne is a SEC-compliant crowdfunding portal that enables businesses and entrepreneurs to raise money through securitized initial coin offerings (ICO), as well as through traditional equity and debt securities. In addition to giving investors accesss to innovative private companies, SeriesOne allows them to transfer funds in the way that works best for them: via cryptocurrencies as well as credit or debit cards, ACH or wire transfers.
Under the agreement, Bithumb will provide investments and technical support for the planned security token exchange. The South Korean firm will also operate the exchange, which is expected to be launched in the first half of 2019.
“SeriesOne actively sought to strike a deal with Bithumb after assessing it as the most suitable partner,” a Bithumb official said. “Bithumb will ramp up efforts to develop into a global financial firm as the blockchain-based asset tokenization is expected to spread globally down the road.”
SeriesOne said that they partnered with Bithumb because they believe the company possesses the know-how to build a tokenized security exchange.
Security tokens are considered as an investment contract similar to that of traditional financial instruments, which means they represent ownership in a real-world asset, whether that is equity, debt or even real estate. In the US, security tokens are subject to laws pertinent to traditional securities. Therefore, establishment of a securities token exchange requires a license from the Securities and Exchange Commission and the participation of a technology partner.
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