A new strategic partnership between Tokeny and the Security Token Network for the purposes of broader industry adoption has been announced. The two projects share a common belief in on-chain solutions for the tokenized security space.
The security token industry is still in the process of building the foundational partnerships for its long-term development. Now, proponents of the space can add yet another addition to this long list: Tokeny and Security Token Network have just announced a collaboration to increase STO-related services and their accessibility.
As per the announcement, the two companies will be working together to provide end-to-end STO services. One of the main goals is overcoming the current inaccessibility of STOs by boosting its visibility in the cryptocurrency space and clearing up compliance questions.
Tokeny will be providing token management services, along with resolving governance issues, while the Security Token Network will be involved with project executions and amassing the fundraising needed for new tokenized security projects. Luc Falempin, the Tokeny CEO, has said that the partnership was made to “help bring mass adoption to security tokenization.”
Helping Startups Launch STOs
Both projects are on the same page when it comes to security tokens: they see it as a core component of the future cryptocurrency industry.
Richard Foster, the founder of Security Token Network, commented on the announcement saying:
“We’ve been closely collaborating with the Tokeny team on a number of initiatives, and they’ve been great to work with at every level. What really captured our attention was their focus on lifecycle management and corporate governance.”
Both firms, however, recognized that the security token industry was still young, but these are the foundational steps that need to be taken for the space to gain much-needed traction. Currently, there seems to be a serious issue with funding for current security token projects which could potentially bottleneck the space.
Tokeny is a Luxembourg-based fintech company that is creating its own infrastructure for tokenized securities and management through KYC and AML compliance checks. The Security Token Industry is a younger company, formed in 2018, with the goal of achieving mass adoption for the significant players, investors, and partners in the STO space.
What do you think of the partnership? Do either of these firms seem promising? Let us know in the comments below.