Bitfinex launches its securities for tokenized securities trading
Bitfinex, the world's seventh largest cryptocurrency exchange by trading volume, entered the world of traditional finance by launching a new exchange called Bitfinex Securities that will allow trading of tokenized securities.
According to an announcement on Monday, September 6, Bitfinex Securities is a regulated investment exchange based in Astana, Kazakhstan, and is regulated by the Astana International Financial Center Authority (AIFC).
The exchange will enable the trading of blockchain-based versions of traditional investment products like stocks, bonds, and mutual funds. The ad says:
“The Bitfinex Securities platform is designed to facilitate capital raising for issuers seeking to have their tokenized securities publicly traded through an easily accessible 'admission to trading' process. This significant step for the industry will expand access to a variety of innovative financial products, including blockchain-based stocks and bonds, along with mutual funds.
The Bitfinex securities exchange will allow small and medium-sized businesses to list their tokenized investment products such as stocks, bonds, or funds and raise capital. Bitfinex clients who want to diversify their portfolio can invest in and trade these tokenized securities. In this way, Bitfinex Securities will allow small private companies to go public through a tokenized issuance.
The exchange is regulated by the Astana International Financial Center (AIFC) of Kazakhstan, but currently has a conditional investment exchange license from the authority. Under this conditional license, Bitfinex Securities has to limit the amount of capital raises to $ 15 million and the maximum number of clients to 1,000. Once the full license is granted, these limits will increase.
However, the Bitfinex Securities platform is not available to everyone. Their services will not be available to residents of the US, Canada, Switzerland, Venezuela, Austria, and Italy. Also, only KYC approved clients will be able to use the platform.
Bitfinex CTO Paolo Ardoino will play the same role at Bitfinex Securities. He, on the new investment exchange, commented:
“As a pioneer in blockchain-based securities, we aim to be the most liquid exchange of its kind in the world. Bitfinex Securities Ltd. provides a regulated platform serving small and mid-cap companies that are currently underserved by inefficient existing capital markets.
Bitfinex is currently the 7th largest cryptocurrency exchange by trading volume. However, not everything about Bitfinex is brilliant. As Crypto Economy reported, in February 2021, Bitfinex and Tether were due to shut down their operations in New York after resolving a legal battle that blamed both crypto platforms covering around $ 850 million in losses worldwide and misleading the market. by exaggerating reservations.