NEM, a peer-to-peer blockchain and platform launched in 2015, is working alongside the Luxembourg-based VNX Exchange to develop a security token standard on their blockchain. VNX Exchange is a trading platform focused on tokenized venture capital assets. The partnership brings NEM one step closer to adopting compliant security tokens on their platform.
With the goal of helping investors avoid financial barriers, VNX’s recent agreement with NEM affirms that a new class of tokenized securities will soon exist on the NEM blockchain.
VNX is trying to bring venture capital to the masses. Rather than have VC fund minimums be some $100k+ per single investment, VNX is currently building a marketplace that would allow smaller investment portfolios and venture capital projects to be traded as tokenized securities on their platform. Based in Luxemburg, VNX hopes that the crypto-friendly regulatory environment may give the exchange a boost in receiving compliance early for securities on NEM.
Kristof Van de Reck, Interim President for the NEM.io Foundation, commented on the agreement saying:
“This partnership gives us the ability to learn more about regulatory compliance specific to our technology and ensures NEM remains at the tip of the spear with regards to security token offering. We also look forward to growing NEM’s ecosystem by leveraging VNX’s platform.”
First Public Mention of Tokenized Securities on NEM
Although the NEM blockchain has been around since 2015, the partnership with VNX is the first official mention of work on tokenized securities on their network.
NEM has been trying to reposition itself in the cryptocurrency market after a difficult year of reduced visibility. The project opened this year with a hack that struck Coincheck exchange, stealing some $530+ million in cryptocurrency from the exchange. NEM was one of the worst-hit currencies, with some 500+ million NEM coins stolen. Since then, NEM has been forced to comply to authorities and provide direction in the investigation of one of the worst exchange hacks in history.
Recently, NEM announced a partnership with Portal Network to offer blockchain name services on their platform. With the now-public agreement with VNX exchange, it seems that the NEM project is exploring new options as to how they can spur functional adoption for its blockchain. The possible answer may be tokenized securities. NEM would likely benefit in the long-term if their network was at the forefront of this emerging sector of the blockchain space. However, NEM is also competing against other platforms, like Ethereum, which are developing security token standards of their own.
What do you think about the NEM project? When it comes to tokenized securities, does it boast any advantages over other cryptocurrency platforms? Let us know in the comments your thoughts.
Image courtesy of Bitcoin Exchange Guide.