BnkToTheFuture, a fundraising platform for fintech and blockchain companies, is gearing up to enable security token offerings (STOs), the company said.
The Cayman Islands-based platform will place an undisclosed stake in crypto consultancy firm, Diacle, to build a shared security token advisory and investment service.
BnkToTheFuture anticipates a wave of market interest in the emerging asset class, CEO Simon Dixon told CoinDesk in an interview.
“We get an average of 45 applications per week from fintech and crypto companies seeking funding. 18 percent of these are now looking at security tokens.”
The investment hub allows qualified investors to participate in equity funding rounds for firms like Coinbase and Kraken, helping to attract traditional investors who are less than totally familiar with digital assets.
“The big challenge for the industry is investors want to invest in security tokens because they offer additional liquidity. But the liquidity is not there yet, as the asset class is very new,” Dixon said.
BnkToTheFuture has an existing network of 87,000 qualified investors. The new service will help issuers stay compliant with securities laws, Dixon said, and will make use of Diacle’s experience with the tokenization process. London-based Diacle will help on-board U.K. investors.
BnkToTheFuture and Diacle also collaborated on the launch of the BnkToTheFuture Token (BFT) and, in 2012, Dixon and Diacle founder Adam Vaziri launched the UK Digital Currency Association to support bitcoin adoption.
The STO market is expanding fast, albeit from a low base. There were two STOs in 2017, 25 in 2018, with 87 projected in 2019, according to Autonomous Research. The total value of the security token market will reach to $2 trillion by 2030, said Chain Partners research.
BnkToTheFuture photo via Shutterstock