BnkToTheFuture, a fundraising platform for blockchain startups, is preparing to facilitate security token offerings (STOs).
Founded in 2010, the Hong Kong-based platform will be investing an undisclosed amount in digital asset consulting firm Diacle. The investment will reportedly be geared toward developing a shared security token advisory and offering an investment service.
BnkToTheFuture’s management is expecting significant market interest in the nascent asset class, according to company CEO Simon Dixon.
“Liquidity is Not There Yet As The Asset Is Very New”
In statements shared with CoinDesk, Dixon notes:
“We get an average of 45 applications per week from fintech and crypto companies seeking funding. 18 percent of these are now looking at security tokens.”
BnkToTheFuture’s online fintech and blockchain investment platform lets accredited investors take part in equity funding rounds for established crypto firms such as Coinbase and Kraken. This helps in attracting more traditional investors to the crypto space.
Dixon says:
“The big challenge for the industry is investors want to invest in security tokens because they offer additional liquidity. But the liquidity is not there yet, as the asset class is very new.”
There are currently around 87,000 professional investors registered on BnkToTheFuture’s platform. The company’s new service will help STO managers in remaining compliant with relevant securities laws, Dixon said.
Security Token Market Expected to Reach $2 Trillion Market Cap By 2030
The investment hub intends to leverage Diacle’s experience with tokenizing assets. UK-based Diacle will be tasked with onboarding new investors.
Previously, BnkToTheFuture and Diacle worked together to launch the BnkToTheFuture Token (BFT). In 2012, Dixon and Diacle founder Adam Vaziri introduced the UK Digital Currency Association in order to promote Bitcoin (BTC) adoption.
The global STO market is growing rapidly, even though it has a low base. In 2017, there were only two STOs, 25 took place in 2018, and around 87 are expected this year, according to Autonomous Research.
The security token market is expected to be valued at $2 trillion by 2030, Chain Partners research group estimated.