The ICO industry has quickly been morphing into the security token offering (STO) industry. For the moment, at least in the US, all crypto assets are now securities. Which begs the question: will 2019 be the year security tokens rise to the mainstream? Juan Hernandez of OpenFinance Network discusses.
OpenFinance Network is one of the first regulated security token trading platforms in the United States. The trading platform was recently activated to “full functionality” in December 2018. The company has been active in the security token space for months now, but regulatory hurdles remain for most investors.
Recently, Crowdfund Insider sat with OpenFinance CEO and founder Juan Hernandez to discuss his optimism for 2019.
Custody Currently the Biggest Hurdle
According to Hernandez, “custody is still a major hurdle in the tokenized asset sector.”
He went on to say: “Many institutional participants are still waiting for a secure approved solution to this problem, but to date, there hasn’t been a clear answer given. As regulations become more clear, we will see more institutional participation which will help create liquid markets.”
Cross-border trading is another key area where security tokens will play a crucial role. Because crypto is naturally borderless, security token would facilitate “global trading in a way that has never been possible before.”
Expectations for 2019
“we firmly believe there will be significant growth in the market this year, we expect it to be largely driven by infrastructure development,” Hernandez told Crowdfund Insider.
In regards to OpenFinance Network, he said that “we see ourselves primarily as ‘infrastructure builders and are excited to continue doing our part to cultivate broader growth in the industry.”
Will 2019 be the year of the security token? According to Hernandez, everything seems to be lining up in that direction.
You can read the full interview with Hernandez here.
What do you think of Hernandez’s comments? Will OpenFinance Network play a crucial role in the security token space in 2019? Let us know your thoughts in the comments.
Image courtesy of OpenFinance Network.