The Latest From Trading Is That Openfinance Opens Up US Trading Of Third-Party Digital Assets
Openfinance and digital securities. Know all the details on it. Where are they headed?
What Are The Third Party Digital Securities?
The fact is that it comes to be the secondary market for trading those digital alternative assets, as Openfinance announced that it will be opening up the trading of third-party digital securities to the US investors making the first trading platform to do so.
Already supporting the trading of third party digital securities, the company in Europe was unable to provide the same capability in the US due to minimum holding periods for the new tokenised securities required by the US regulators.
As of now, the holding periods come to be up for two of the first security token assets traded on the Openfinance as the Blockchain Capitals’ BCAP security token along with SPiCE VC’s SPiCE token that is both accredited and non-accredited investors in the US able to access and trade both securities through the Openfinance network.
As it comes to be the first of the several digital securities it is the BCAP and SPiCE that will soon be tradeable through Openfinance as the minimum holding periods are concluding for the multitude of other assets that are currently tradable for the platform’s non-US investors.
How Is Openfinance Reacting To It?
Openfinance as a result will relieve significant pain points that are for those looking to sell digital alternative assets often forced to sell the prices significantly below the asset’s true value due to poor liquidity.
According to the Openfinance founder and CEO Juan Hernandez, the ability is seen as the US investors trade these digital assets and access liquidity marking the significant next step in the evolution of the digital securities market.
One of the several firsts for Openfinance, the launch brought it to be the first company to facilitate a secondary market for tokenised securities as was also the first secondary market for the digital alternative assets to become regulated by the US agencies.
In the digital securities space, unlike previous players, it seemed averse to the government oversight representing a growing set of new companies seeing a regulated future for the sector.
Openfinance thereby comes to be a registered Alternative Trading System that is regulated by the SEC, one regulatory step below the national exchange like the Nasdaq or NYSE hoping to become the go-to resource for investors looking for safe, stable access to the digital securities or those looking to better understand rues related to unregulated securities. According to Hernandez, they are selling liquidity and legitimacy.
The Role Of The Company
Allowing it to play a more influential role the company’s regulated position is shaping the standards around the digital security asset class whereas as ATS, Openfinance is now setting the requirements for assets looking to get listed on the platform such as potentially requiring audited financials or otherwise.
Hereby as Openfinance comes with liquidity for digital securities improving and as regulatory agencies continue to provide more guidance around the rules governing them, it believes more institutional players thereafter begin to get involved in what is the asset class as well.
The company is in longer-term hoping to support much more than just the token securities on the platform as they look at security token offerings as proof of concepts of their technology according to Hernandez. Does he also question whether you can compliantly list it on-chain? Can you trade it on-chain? As they think they have proved it, they accomplished proof of concept.
Finally, it is discovered that Openfinance has now down the road set its eyes on the broader alternative asset class that is also including anything from digital securities issued by pre-IPO companies to those of VC firms and hedge funds as it is believing that every investor is then able to access these traditionally exclusive assets as it is rather than just what a small set of insiders or even those backed by the significant amounts of the wealth or capital.
Democratising the space is Openfinance making these opportunities available to a broader universe according to Hernandez and they are bringing access, transparency, and liquidity to the market and that’s what they want to do longer-term.
Finally, To Sum Up…
By opening up to the trading of digital securities, there is always one of the major consequences faced by Openfinance. By issuing the securities they hope to attract more investors on its public ledger. Even though more of the non-US investors are being targeted, it comes to be the best when it is displaying its mettle. For more details from us stay tuned and keep your fingers crossed. The market is ripe with many investors seeking solace in the third-party securities. So, what is it being seen as the future of the investment vehicles?