After the many painful years of stagnant development in the STO industry, it is finally starting to see the light at the end of the tunnel. In the past year, we have seen a large influx of investment and large institutions making their way into the security token market.
As previously mentioned, the STO industry started booming in 2017, with multiple token issuance platforms issuing security tokens globally. This phenomenon was short-lived as people slowly realized that just issuing a security token is not going to cut it. There were no trading venues or licensed custodians to safe keep these assets.
However, this all started to change in 2021. Large traditional financial institutions have begun investing in STO infrastructure globally.
Recent Articles Showing How These Big-Name Companies Are Entering the Market
Brokers and Exchanges
- Securitize Raises $48 Million in Series B Capital Co-Led by Morgan Stanley Tactical Value and Blockchain Capital
- DBS launches digital bond issuance platform to ease capital markets access
- SINGAPORE Exchange (SGX)-backed digital securities platform iSTOX has raised US$50 million in Series A funding
- UOB to pilot digital bond offering on Marketnode
Digital Asset Custodians
- State Street announces the launch of digital asset division
- Nomura-backed digital asset custodian Komainu raises $25 mln
- Citi has been selected by BondEvalue Pte Ltd to act as a custodian for the underlying bonds traded on its digital exchange as fractionalized assets (called “BondbloX”)
- Deutsche Bank Securities Services in Singapore and Hashstacs Finalize PoC on DLT for Sustainability related Digital Bonds
These are just a few examples of recent investments into the STO space. The industry is developing rapidly, and the notion of STOs being dead is entirely false, as shown from all the underlying activity in the market this year.
The size and amount of institutional investment are signalling a change of winds in the STO market, and we expect to see exponential growth in the industry moving forward.
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About IX Swap
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.