Security tokens platform TokenSoft Inc. has invested in a company that is purportedly a United States Securities and Exchange Commission-compliant broker-dealer, according to a press release published Dec. 13.TokenSoft is a platform that provides a suite of technology and security products for the sale, issuance, and management of security tokens and other digital assets.
Security tokens often promise investment returns and value appreciation, in addition to allowing holders to purchase goods and services.
The company in which TokenSoft invested is now renamed TokenSoft Global Markets, LLC, while TokenSoft is entitled to acquire 100 percent of TokenSoft Global Markets.
TokenSoft Global Markets will reportedly enhance the range of its services, including referrals to exchanges or brokers, custody solutions, or private placement services.
The investment enables TokenSoft to offer issuers the choice to host a token sale themselves or work with a broker-dealer to manage the token sale on their behalf.
"As a result of rapidly growing interest in the security token market, we have been inundated with requests for broker-dealer support services. With this investment, we are building a one-stop-shop for digital asset issuance and management - enabling us to expand our security and compliance support to every stage of a digital asset's lifecycle."
Last week, Thai cryptocurrency exchange Satang Corp. announced plans to raise nearly $10 million in a security token offering.
Satang's plans are reportedly supported by the government of Thailand in a bid to make the country a blockchain hub and develop a regulatory framework for digital currencies and blockchain.
Last week, the People's Bank of China, the country's central bank, highlighted the illegality of STOs in the country.
The deputy governor of the bank noted that "The STO business that has surfaced recently is still essentially an illegal financial activity in China," reiterating the stance that cryptocurrencies are associated with crime.
Security Token Platform TokenSoft Invests in SEC-Regulated Broker-Dealer
Published on Dec 14, 2018
by Cointele | Published on Coinage
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