Following the ICO wave of 2017, the cryptocurrency markets came crashing down amid concerns of regulatory backlash, and since then, the space has felt relatively muted. But make no mistake, the community has been quietly gearing up and building infrastructure to support the next big wave of crypto innovation — tokenized securities.
Related: 6 Ways Cryptocurrency and Blockchain Are Changing Entrepreneurship On March 26, Coinbase published a blog post announcing its intention to support the Ethereum ERC20 technical standard on its platform. Following the announcement, on April 6, the Wall Street Journal published an article detailing conversations between Coinbase and the SEC about possible paths towards registering as a licensed brokerage firm and electronic trading venue.
Combining ERC20 compatibility with the SEC’s blessing to act as a legal brokerage, Coinbase would be in a position to offer tokenized securities to more than 10 million users on their platform. Coinbase isn’t the only one hoping to offer their services for tokenized securities.
On April 10, Overstock.com subsidiary tZERO unveiled a prototype of their technology that will “support the eventual trading of security tokens.” Meanwhile, companies such as Templum, OpenFinance Network, Sharespost and the Gibraltar Stock Exchange have been working diligently to build bulletproof platforms for the issuance and secondary trading of security tokens. Even Nasdaq recently stated that they wouldn’t be opposed to becoming a crypto exchange.
In early March, the SEC issued a Statement on Potentially Unlawful Online Platforms for Trading Digital Assets outlining precautionary measures for investors to consider before buying or selling tokens online. While the increasing presence of the SEC in the world of crypto has been alarming for some, it’s actually beneficial to the community as a whole. Read more from entrepreneur.com…
thumbnail courtesy of entrepreneur.com