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Security Token Platform Provider TokenSoft Invests in SEC-Registered Broker-Dealer


cryptovest.com 18 December 2018 19:50, UTC
Reading time: ~2 m

TokenSoft, a startup that focuses on the tokenization of real-world assets, announced on Thursday that it had invested in a broker-dealer regulated by the US Securities and Exchange Commission (SEC). Apparently, TokenSoft bought a major stake, as the entity was rebranded as TokenSoft Global Markets, LLC. TokenSoft has gained the rights and potential to acquire 100% of TokenSoft Global Markets, which should occur under regulatory supervision.

Thus, TokenSoft will use the newly acquired firm to expand its range of services, which will also include custody solutions, referrals to exchanges, and private placements among others.

TokenSoft CEO Mason Borda commented:

“As a result of rapidly growing interest in the security token market, we have been inundated with requests for broker-dealer support services that we historically have not been able to provide. We heard our clients, and now we're answering. With this investment, we are building a one-stop-shop for digital asset issuance and management – enabling us to expand our security and compliance support to every stage of a digital asset's lifecycle.”

TokenSoft operates a platform that allows companies to issue security tokens, which are digital assets backed by company stock or other real-world assets. The platform users will now be able to choose from conducting the token sale on their own or dealing with a broker-dealer like TokenSoft Global Markets. Issuers who plan to hold the token sale by themselves will still be able to use TokenSoft's compliance platform and the Knox Wallet, which is a self-custody service. On the other hand, those who want to rely on TokenSoft Global Markets will get support at each step of the token sale process.

Lawson Baker, who leads TokenSoft’s Project Zero, explained:

“The new services offered by TokenSoft Global Markets will be fully integrated into our high touch customer experience. We are committed to providing our clients with everything they need to participate in the future of security tokens, and TokenSoft Global Markets is a reflection of that commitment.”

In September of this year, TokenSoft said that its token issuance and compliance platform supported projects were based on R3’s Corda blockchain platform.

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