Subcategories for Digital Assets
- Security Token Offerings (STO)
- Tokenized Stock Offerings (TSO)
- Stablecoins & Central Bank Digital Currencies (CBDC)
- Non-Fungible Tokens (NFT)
A cryptocurrency is a medium of exchange, created and stored electronically on the blockchain using cryptographic functions to conduct financial transactions and to control the creation of monetary units.
- No physical form
- Only exists on the blockchain network
- The supply is not determined by a central bank and is completely decentralized
- Not regulated
2. Security Token Offerings (STO)
Security tokens are the next generation channels of capital formation for businesses. These offerings are similar to traditional securities offerings, but instead of receiving a stock certificate or note for their investments, investors receive their investment shares in the form of security tokens.
- STOs are NOT cryptocurrencies
- Regulated by governing bodies and must be issued and traded on licensed platforms, such as InvestaX
- Essentially digitized version of traditional as well as alternative investments
- Presents security-like features such as receiving voting rights and dividends
Types of Assets that can be Tokenized
3. Tokenized Stock Offerings (TSO)
Tokenized stock offerings refers to traditional stocks that would be listed on the NYSE or NASDAQ that come wrapped in the latest technology to provide a tokenized version of the stock.
TSOs are considered as securities, regulated by each jurisdiction’s security laws and governing bodies.
Crypto exchanges such as Binance and FTX had launched these TSO products earlier this year indicating the stamp of approval from these cryptocurrency giants.
4. Stablecoins & Central Bank Digital Currencies (CBDC)
A central bank digital currency (CBDC) or a stablecoin uses a blockchain-based token to represent the digital form of currency backed by a reserve asset.
Central Bank Digital Currencies (CBDC)
- A central bank digital currency (CBDC) uses a blockchain-based token to represent the digital form of a fiat currency of a particular nation
- Unlike decentralized cryptocurrency projects like Bitcoin, a CBDC would be centralized and regulated by a country’s monetary authority
- Stablecoins are cryptocurrencies that attempt to peg their market value to some external reference (i.e. US Dollar or commodity’s prices such as gold)
- They achieve their price stability via collateralization (backing) or through algorithmic mechanisms of buying and selling the reference asset or its derivatives
5. Non-Fungible Tokens (NFT)
A non-fungible token (NFT) is a unit of data stored on the blockchain that certifies a digital asset to be unique and as such, not interchangeable. Photos, videos, audio and other types of digital files have been used to create NFTs.
While access to the original file might not be restricted to the owner of the NFT, they are tracked on the blockchain to provide the owner with proof of ownership that is separate from copyright.
We are now living in a digital age where digital assets from all categories are growing at an exponential pace. Cryptocurrencies have opened our eyes up to the possibilities that blockchain technology can bring, allowing assets to be tokenized, changing the landscape of capital markets and bringing more efficiencies to the world we live in. It is certain that digital assets are here to stay and are the only way forward…
IX Swap is the “Uniswap” for STOs and TSOs, the regulatory and liquidity solution for security tokens and tokenized stocks.
IX Swap will be the FIRST platform to provide liquidity pools and automated market-making functions for the STO/TSO industry. The platform will facilitate the trading of security tokens through licensed custodians and security brokers which will provide actual ownership and claim over these real-world assets.