The Vanbex Group has partnered with broker-dealer Entoro to break into the security token market. Acquiring or working with a registered broker-dealer has become strategically important in the young security token space and is a common theme among several industry leaders: tZero, Circle, TokenSoft, and now, Vanbex.
Vanbex and Entoro Partner to Enter Security Token Space
The Vanbex Group is a well-known blockchain technology service. They’ve now partnered with global investment, financial and banking service company Entoro.
Together, the two companies plan to enter the space where their areas of expertise intersect: security tokens.
Importantly, Entoro is a licensed broker-dealer, which allows them to compliantly trade securities on behalf of other entities.
According to Lisa Cheng, founder of Vanbex Group,
“It’s rare to meet a broker-dealer with as much knowledge about blockchain as they have in-house. We are very excited to work with Entoro.”
Entoro has historically provided different services and advice to growth-oriented businesses across the world. The company claims to have industry experts for banking, fixed income, and equities services in South America, Europe, the Americas, Asia, and the Middle East.
The company helps with mergers and acquisitions, capital formations, equity or equity-linked financing, leverage financing, offering recapitalization solutions and restructuring.
Entoro released the following comments on the partnership:
“Entoro is excited to work with Vanbex and appreciate their deep understanding of blockchain technology. The partnership between Vanbex and Entoro will enable companies using OfferBoard to utilize Vanbex’s Rocket 2.0 product in an intuitive and seamless interface for asset issuance, administration, and interfacing with the secondary market. Providing issuers with vetted and trustworthy solutions that lower the barriers to entry and minimize friction is Entoro’s highest priority.”
How Broker-Dealers are Important for Security Tokens
Working with broker-dealers has become a primary theme among many enterprises in the digital asset space.
In October 2018, Circle acquired licensed broker-dealer SeedInvest, effectively allowing them to create a tokenized market place.
In December 2018, TokenSoft— creator of the world’s first hardware wallet for tokenized securities— announced a majority stake in an SEC-registered broker-dealer.
tZero, a highly anticipated security token trading platform, partnered with broker-dealer Dinosaur Financial Group in February 2019.
Given the current regulatory situation for tokenized securities, either acquiring or working with a broker-dealer is a must for those wishing to enter the security token space.
What do you think of the recent partnership between Vanbex and Entoro? What will the partnership ultimately lead to? We want to know what you think in the comments section below.
Image courtesy of Vanbex and Entoro.