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Tokenization platform Equisafe and payment company Lemon Way have formed a partnership with aims to integrate new payment services with blockchain-powered investing. According to the companies’ representatives, such integration should serve the general process of establishing links between traditional finance, payment ecosystem, and decentralized finance.
Equisafe is a digital asset platform for the issuance and management of a variety of assets. The Paris-based FinTech company was the first to launch a real estate-backed security token offering in France. As of February 2020, it was reported that the company is preparing to bring its platform in the U.S.
Lemon Way is a popular payment platform, widely used in Europe. In 2012, Lemon Way was granted the Payment Institution license, along with a “financial passport” that ever since allowed Lemon Way to operate in 29 European countries. This French company is known for being very open to implementing FinTech solutions.
The collaboration between Equisafe and Lemon Way, therefore, appears natural as both companies can contribute to each other. The collaboration is anticipated to lead to the development of tokenizing financial securities by making the processes of issuing, managing, and exchanging securities faster and more reliable.
According to the statements of Equisafe and Lemon Way CEOs, their companies’ partnership will be a progressive step toward the successful implementation of digital securities in the European marketplace. However, such an ambitious goal needs a viable legal solution that allows the process of security tokenization to be executed in accordance with current European regulations. That is exactly where Lemon Way is able to provide Equisafe with crucial aid.
Namely, the collaboration between the companies will, among other things, ensure a single secure and legally compliant environment for the DvP settlement process in the sphere of financial securities. This way, Equisafe is able to focus on tokenization while Lemon Way is, among other things, creating legal conditions for the whole process.
Ultimately, the tokenization of financial securities should lead to an optimization of fundraising processes. while making their financial infrastructure more supple during turbulent periods. COVID-19 pandemic has put the resilience of many financial systems to the test, thus showing that there’s a need for innovative solutions.
Tokenization, as a revolutionary digital security method, has steady-growing popularity across the globe. Security tokens come with unique advantages when compared to traditional financial securities. The emerging digital asset allows for 24/7 access to a global market, instantaneous settlement cycles, and much more. Such advantages have already witnessed successful implementation from investors and companies like World Chess and Andra Capital in private capital raises.
The Equisafe-Lemon Way collaboration is likely to introduce cutting-edge FinTech to Europe along with the benefits of fast and secure transactions. Lemon Way will aid Equisafe with its KYC (know your customer) and AML (anti-money laundering) technology and will also help Equisafe by allowing instantaneous transaction settlement.
Therefore, all the investors who want to acquire unlisted financial securities using currencies like dollars, euros, pounds, etc. will be able to do so in a new way; with the benefits of tokenization. Along with prompt transaction settlement, investors can expect superior FinTech protection.
All the pros of tokenization provided by Equisafe, conjoined with legal backup and security technologies by Lemon Way are likely to benefit the security token industry on a larger scale. European markets will be the first to benefit from the companies’ collaboration, should their project provide tangible results. Moreover, the Equisafe-Lemon Way partnership may become an inspiration for similar collaborations worldwide.
Can collaborations similar to those of Equisafe and Lemon Way improve the security of the investment on a global scale? What can we expect from this collaboration with regards to investment security during COVID-19 pandemics? Please let us know your thoughts in the comments below.
Image courtesy of EquiSafe.