Nasdaq joins crypto bandwagon, mulls launching security token platform
Nasdaq, the second largest stock exchange in the world, is eyeing to introduce a security token platform, according to a report by the Block. The platform will allow to issue and trade security tokens. A security token platform enables firms to issue a blockchain based token to raise capital. Unlike ICOs, STOs or security token offerings are compliant to federal security regulations.
To help create a security token platform Nasdaq is in discussions with numerous firms including Symbiont. The firms which apply for a listing on Nasdaq's security platform will be subject to intense scrutiny as a normal stock listing on the exchange requires all interested companies to follow strict regulatory procedures. Companies are eligible for a Nasdaq listing only if it is registered with the US Securities and Exchanges Commission [SEC]. The companies must possess three market makers and are also required to meet minimum requirements for assets, capital, public shares, and shareholders.
Nasdaq's has shown an interest to issuing tokenized securities since 2015. If the platform becomes a reality the company will follow firms offering such services including Polymath, tZero, and TrustToken.
Last year, Nasdaq CEO Adena Friedman said that ICOs were a bleeding edge and the exchange operator had no interest in them.
In October 2017, said the firm was not interested in ICOs, describing them as “bleeding edge.” “I have real concerns around the lack of process, the lack of oversight, the lack of transparency, the lack of accountability that these companies, or individuals, have as they’re going out and trying to raise capital through an ICO,” she said during an industry conference in June 2018. “If you decide you want to do an ICO in a regulated manner then we’d be happy to figure out whether there is an opportunity to work with people to do that,” she added.
This implies that Nasdaq is on board with building platform adhered to the security laws decided by regulatory authorities and therefore, Nasdaq possibly considers security tokens as the best way to tap into the nascent industry.
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