VNX Exchange partners with NEM to develop security token protocols 24810
News
Priyanka Babu
Oct 9, 2018 at 2:15 PM

VNX Exchange, a Luxembourg-based trading platform, has announced a partnership with NEM, a peer-to-peer cryptocurrency and blockchain platform. The partnership aims to develop protocols and standards for operating security tokens on the NEM blockchain. VNX Exchange aims to provide venture capital as an asset class for new investors in the blockchain industry and targets a global investor base.

VNX Exchange and the blockchain platform are together developing a liquidity program which will incentivize venture capital funds investing in startups involved in the NEM ecosystem. These funds can achieve optimal liquidity by joining in the initial security token offerings on the VNX platform. The VNX trading platform also plans to list the company's native cryptocurrency, XEM.

“We believe that tokenized assets are the future of capital markets and that blockchain offers tremendous opportunities to improve how financial markets, especially private ones, operate," said Alexander Tkachenko, CEO and founder of VNX Exchange.

“This partnership gives us the ability to learn more about regulatory compliance specific to our technology and ensures the company remains at the tip of the spear with regards to security token offering," said Kristof Van de Reck, interim president for the NEM.io Foundation.

Venture capital (VC) funds have been plagued with liquidity problems from the past. Investment in a VC startup can mean a long-term investment of five to ten years. Blockchain is solving the VC funds' liquidity problem by tokenizing assets. Asset tokenization refers to issuing tokens for illiquid assets, thereby giving them liquidity as the asset can be traded via tokens.

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