Bitfinex capitalizes on security tokens
The Bitfinex platform has just created a new entity to expand its ecosystem: Bitfinex Securities. This new platform attached to Bitfinex will give companies the opportunity to list their tokenized stocks or bonds, as well as to raise funds. At the same time, individuals and institutional investors will be able to participate in these fundraisings, and then trade the security tokens.
“We’re basically trying to compete with the London Stock Exchange and other traditional exchanges,” argues Paolo Ardoino, CTO of Bitfinex Securities, in an interview with The Block.
Indeed, unlike other competing platforms like FTX or Bittrex, Bitfinex Securities will not list tokens attached to stocks already listed on the exchange. Instead, Bitfinex Securities aims to become a go-to platform for companies looking to take their shares public, but via tokenized shares on the blockchain.
“As the platform will deploy cutting-edge technologies to reduce costs, increase efficiency and optimize the success rate of capital raises, investors will have access to a high-performance, low-cost security token trading market,” Bitfinex’s statement said.
For companies, Bitfinex Securities will truly act as a launch pad. In addition, the teams of this new platform will accompany each project wishing to raise capital through this intermediary. This is a way for Bitfinex to attract a new category of investors, while the main platform is struggling to keep up with the competition.
However, like the parent platform, Bitfinex Securities will not be accessible to US residents. In addition, residents of Canada, Venezuela, Austria and Italy are also not allowed to use the platform’s services.
Unsurprisingly, Bitfinex Securities is also implementing a Know Your Customer (KYC) process, which will be mandatory for investors to complete.
Infinite Fleet’s EXO opens the ball
The first security token to join Bitfinex Securities will be the Infinite Fleet blockchain token, EXO. The latter represents a profit-sharing equity of Infinite Fleet’s publisher, Exordium Limited, but without voting rights.
Since it is a security token, EXO holders will share 20% of Infinite Fleet’s profits.’Infinite Fleet, in addition to the possibility of seeing their investment appreciate over time.
It will be interesting to watch how the EXO token develops when it arrives on Bitfinex Securities scheduled for September 29, with the 100 million EXOs issued at the initial price of $0.50.
To learn more about Infinite Fleet, check out our exclusive interview with Sonny Alves Dias, CTO of Pixelmatic
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About the author: Clement Wardzala
Editor-in-Chief of Cryptoast, I discovered Bitcoin and blockchain technology in 2017. Since then, I’ve been striving to share qualitative content so that the sector can be democratized to everyone.
All articles by Clement Wardzala.