OpenFinance Network Activates the First US-Regulated Security Token Trading Platform to ‘Full Functionality’
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OpenFinance Network Activates the First US-Regulated Security Token Trading Platform to ‘Full Functionality’

As of December 13th 2018, OpenFinance Network has transitioned from beta to full trading functionality, thereby establishing the first live, US-regulated security token trading platform. With many developments in the security token industry throughout 2018, the added liquidity from a compliant trading platform suggests 2019 is set to be the year of implementation.


The Details of OpenFinance Network’s Launch of Security Token Trading

The world’s first US-regulated security token trading platform is live. Chicago-based OpenFinance Network (OFN) has transferred from beta to full trading functionality.

The platform is available to both accredited and non-accredited investors in the United States and abroad. OFN verifies investor eligibility through their Investor Passport application which performs a one-time verification process.

OFN has developed their own security token standard, the Smart Securities Standard (S3), which allows for the platform to offer both token issuance and secondary market trading.

Blockchain Capital (BCAP) will be one of the first security tokens available for trade. The token— which is powered by the Securitize DS Protocol— features dividends from a venture capital fund focused on digital assets. Notably, Blockchain Capital was one of the first businesses to issue a compliant Security Token Offering (STO). The fund currently contains 50 active investments and includes 6 exits.

OFN CEO Juan Hernandez provided comments on the operational status of his team’s platform, along with his company’s commitments going forward.

“2018 is said to be the year of security tokens, but, for us, this is only the beginning. We are committed to supporting all levels of investors in participating in this burgeoning alternative asset ecosystem. As we continue to partner with more security token assets, we are able to offer people more opportunities for wealth generation.”

The Potential Future of Security Tokens in 2019 Explained

Many agree with Hernandez that 2018 has indeed been the year of the security token.

2018 has witnessed a lot of technological development for the security token industry: Ethereum has seen more than 9 ERC-20 compatible security token standards.

Some— such as Jesus Rodriguez— argue the industry needs to shift focus from security token standards to the actual implementation of security tokens. As he says, “a security token standard which hasn’t been implemented in any security tokens is the definition of an oxymoron”.

Regardless, the second half of 2018 did witness the start of tokenization: Investment funds, luxury property, equity, REITs, and even a painting by Picasso have undergone tokenization.

With the added liquidity that a fully functional security token trading platform brings— such as OFN— 2019 is likely to become the year of implementation.

What do you think of the fully functioning status of world’s first US-regulated security token trading platform? How will the future play out between OFN and tZERO? Let us know what you think in the comments below.


Image courtesy of OpenFinance Network.

December 14, 2018

About Author

SamBocetta Sam Bocetta is a retired security analyst with over 35+ years working in the public and private security sector advising against cyber warfare. Sam has worked with some of the largest global defense companies developing integrated systems for security and communication. Despite his previous work experience, Sam is a strong supporter and believer in decentralization.