Following the China Digital Economy Global Innovation Forum, BitMart released more information about their Security Token Offering (STO) service than initially anticipated. BitMart has now partnered with investment fund and advisory group The Cabin Capital to facilitate compliant fundraising via STOs.
Bitmart and The Cabin Capital’s Joint Venture Explained
Registered in Singapore yet based in China, The Cabin Capital is a blockchain investment fund and advisory group which is also a strategic investor of OpenFinance Network (OFN).
OFN launched the first United States-regulated security token trading platform back in December of 2018.
Now, under the new agreement, The Cabin Capital is teaming up with BitMart to facilitate the growth of BitMart’s newly announced STO services.
According to Devin Huang, founder of The Cabin Capital,
“Both The Cabin Capital and BitMart have fully realized the great value of the STO industry. As a member of BitMart club, we hope the collaboration will jointly establish a high-speed listing process for alternative assets, so as to create a more efficient financing environment.”
BitMart Club is a consortium of investment experts from the world’s top blockchain investment enterprises. They see the high potential of the quickly emerging security token industry.
As a fundamental part of BitMart, BitMart Club’s mission is to bridge the gap between tokenized securities and the on-chain crypto capital markets.
How Broker-Dealer’s are Extremely Important in the Security Token Industry
BitMart recently partnered with a FINRA-registered broker-dealer, allowing them to compliantly issue security tokens in the United States.
Important in the digital asset industry, broker-dealer licensing allows an enterprise to buy and sell securities on behalf of other entities.
As regulators continue to enter the digital asset realm, many tokenized assets are likely to be deemed securities.
In the United States, for example, Securities and Exchange Commission (SEC) Chairman Jay Clayton has publicly stated how the majority of Initial Coin Offerings (ICOs) constitute securities offerings. They therefore must abide by the commission’s existing securities laws.
The same situation can be seen in Hong Kong.
What do you think about the partnership between BitMart and The Cabin? Will the joint venture pioneer the security token industry in the Asian market? We want to know what you think in the comments section below.
Image courtesy of The Cabin Capital and BitMart.