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Blockport has announced a Security Token Offering (STO) with a goal for international growth and a primary target on the US market. Currently, US citizens are restricted from using the Blockport platform, but with “demand validated for the US market”, funds raised through the STO will go towards US market entry.
Blockport is an Amsterdam-based cryptocurrency trading platform which was launched in January 2019. Since the launch, the enterprise claims to have seen “paid user conversion four to five times higher than its biggest competitor, Coinbase”.
In addition, Blockport says “a significant portion” of their website’s traffic comes from the United States. However, out of a concern for regulatory compliance, US citizens are currently unable to register with and use the platform.
Blockport has therefore decided to launch an equity-based Security Token Offering (STO) to break into the US market, along with additional international expansion.
The Blockport STO is set launch March 31st 2019, and will feature the Blockport Securities (BPS) token. The asset will be linked to a stake in Blockport, entitling holders to profit sharing through dividends.
Each security token will represent a Depository Receipt (DR) for a corresponding share. DRs have been used since the 1920s, and allow investors located in one country to purchase the stocks of companies listed in other countries.
ABE also utilizes DRs in their plan to replace the Initial Public Offering (IPO) with the STO.
Blockport’s STO will feature multiple stages. The first will be open to European investors and accredited US investors under the SEC’s Reg 506(c) exemption.
The first step in Blockport’s US-market rollout, they say, was a newly announced partnership with TrueUSD.
The integration with TrueUSD will result in an increased number of USD-backed trading pairs, says Blockport.
“As part of the global expansion, we’re hugely excited to have partnered up with a top-30 USD stablecoin, TrueUSD (TUSD), which will be listed on our platform and paired with our utility token, BPT.”
The Blockport platform is currently available to users in more than 75 countries throughout the world, a number they plan to increase to over 150 in 2019.
Other European-based cryptocurrency exchanges to launch an STO include the Maltese Exchange (LXDX), who announced plans for an STO in November 2018.
What do you think of the upcoming Blockport STO? Will cryptocurrency exchanges wishing to raise capital see success with STOs? Let us know what you think in the comments section below.
Image courtesy of Blockport.