Our team has been working on security tokens since the industry’s beginning in 2018. Since then, we have seen more key infrastructure coming to the market to facilitate the end-to-end issuance and trading of security tokens.
Today, there are several security token issuance platforms, broker-dealers, exchanges, and custodians fueling the industry’s growth, and part of IX Swap's product offering is to provide liquidity solutions for the entire industry.
As 2022 draws near, it will be a fascinating year for IX Swap and the security token industry. Let us recap what has been going on in 2021 so far for security tokens.
First, a reminder of the size of the security token industry for private markets:
McKinsey & Co. forecasts the size of the private markets to grow to US$15 trillion in assets. The tokenization of the private markets is one of the most exciting opportunities in capital markets today.
Covid-19 has cemented the need for firms to adapt to a digital future and innovate, and tokenization of assets is a natural evolution for the digitization of private markets. If you aren’t paying attention to this space, you risk being left behind.
Here is a list of some of the STOs that have been issued around the world to date:
Growth of Quality Institutional Digital Issuances:
- UOB pilots digital bond issuance of S$600m perps at 2.55%
- MUFG to launch asset-backed security tokens with Nomura, SBI
- Mitsui to launch digital assets securities platform for tokenized real estate
- SBI securities updates legal registration. Readies for security token offerings
- UOB pilots digital bond issuance on marketnode platform
- Singapore’s DBS bank launches digital bond security token
- Gucci, other luxury fashion brands are poised to launch NFTs
- Sumitomo Mitsui trust bank to issue japan’s first security tokens
- Azimut tokenizes $6 million loan portfolio with sygnum blockchain tech
- SBI securities updates legal registration. Readies for security token offerings
- Sumitomo Mitsui trust bank to issue japan’s first security tokens
- Blockstream releases Bitcoin mining security token, the blockstream mining Note (BMN), on STOKR
- Azimut tokenizes $6 million loan portfolio with Sygnum blockchain tech
- Swiss bank Seba issues Series B equity as security tokens
- Swiss consortium to spur blockchain-based innovation with a gold token
- European real estate firm vonovia issues €20 million digital Bond on stellar blockchain
- SolidBlock to list $150 million in real estate-based security tokens on the INX securities trading platform
Rapid Development of Institutional Infrastructure:
- Bursa Malaysia explores blockchain for stock certificates with VMware, digital asset
- SIX receives approval from swiss regulator to operate digital securities market
- Standard Chartered launches digital blockchain trade finance platform in Singapore
- “Token X”, a subsidiary of SCB 10X, is set to tap into the digital token market, aiming to be an ASEAN leader in digital asset tokenization by 2025
- DTCC plans 2022 go live for blockchain stock settlement Project Ion
- BNY and others invest in Fireblocks for digital asset API flex
- Standard Chartered and BC Group partner to establish europe-based institutional digital-asset trading venture
- BNY and others invest in Fireblocks for digital asset API flex
- Singapore emerges as Asia’s digital securities trading hub
- The Rise of digital securities (Nasdaq)
- Stock Exchange of Thailand plans 2021 digital asset trading launch with plans for digital asset trading to start in the second half of this year
Interesting New Developments:
- BIS, HKMA to explore tokenizing green bonds, including public blockchain
- Bitfinex To roll out security token offerings (STOs) platform in Kazakhstan
- Seoul mulls bringing security token into a legitimate investment contract framewor
As you can see, it is clear that the industry is well on its way and rapidly growing around the globe. With millions and then billions of security tokens coming to market and all seeking liquidity solutions, IX Swap is positioned to provide critical services to the multi-trillion security token market as it grows and expands.