Extauri aims to become Europe’s first platform to allow for the trading of cryptocurrency tokens, fiat currency, and traditional financial securities. With a focus on security and compliance, they aim to bridge the gap between blockchain-based assets and the conventional banking system.
Security tokens are beginning to take off. They’ve already reached vast areas, beyond the traditional securities domains like Wall Street.
Hollywood is experiencing new methods of raising capital. A luxury Manhattan condo development worth $30 million was just tokenized on Ethereum.
The two major remaining concerns for the future of security tokens seem to revolve around regulatory compliance and liquidity.
In the context of security tokens, liquidity can be described as an asset’s capability to be turned into cash. The more liquidity a token or trading platform has, the easier, quicker, and more efficient it will be to convert a token into fiat.
Extauri’s Efforts to Bring Added Liquidity to Tokenized Securities
If you purchase a high-valued security token, how easy will it be to convert that into cash? The answer— right now anyway— isn’t very clear. There are hardly any exchanges or trading platforms which feature the ability of trading a security token for traditional fiat.
This is precisely the issue that Extauri is trying to solve. As stated by Domenik Gerapetritis, Extauri Co-founder and Chief Business Development Officer,
“The main issue in the existing market is that you have security tokens, but they can’t be traded on a public exchange. Token security is very important to the viability of future finance projects seeking alternatives to bank financing. This is possible with Extauri due to our secure model and licensing.”
Extauri’s Vision of a Compliant and Secure Trading Platform
Extauri’s development and infrastructure is entirely in-house. As opposed to relying on third-party solutions, they believe that their own approach will eliminate the possibility of foreign or unknown source code. Ultimately, they claim, this will ensure ledger integrity and security.
An interesting feature of Extauri’s platform is the self-managed ‘My Admin Wallet’. Through this tool, only the user has access to his-or-her private key. Extauri possesses no access to the wallet, and only processes the transaction through their system. In this way, data cannot be misused by third parties.
Though the project is still in progress with a token sale kicking-off in November of 2018, they’ve already begun preparations for regulatory compliance.
They have an electronic communications network (ECN) license, they have been approved by FMA and BaFIN, and they adhere to the standards of the Economic and Monetary Union of the European Union (EMU).
Tino Cabero, CEO and Co-founder of Extauri, described their priorities through the following:
“Security of cryptocurrency and investment are our key principles. Existing platforms are largely outside banking regulations and lack transparency. We handle the legal and technical side of things, so you don’t have to.”
Theoretically, tokenized securities seem to have much more liquidity than traditional securities. However, the increased liquidity of security tokens is only legitimate if a compliant system of trading can allow for such liquidity. And this is precisely what makes the new Extauri platform so significant.
Will we see additional platforms that combine tokenized and traditional trading in the future? What needs to happen for such an evolution? Let us know what you think below.
Image courtesy of Extauri.