BANKEX, a blockchain fintech firm focusing on the opening field of asset tokenization, has partnered with Devexperts, a Munich-based software developer specializing in financial services and trading software, the company announced today on its social media.
The Moscow-based firm bills itself as “a leading global financial technology company developing a tokenization ecosystem,” and has developed a “Proof-of-Asset” protocol with the goal of digitally tokenizing physical assets. BANKEX is developing tokenization frameworks for real estate, franchises (to “[connect] private investors with franchisors in order to speed up and clarify fundraising for network growth”), social media accounts, and entertainment platforms.
Devexperts “develops professional software systems for the capital markets industry,” according to Bloomberg. The firm will build out BANKEX’s access to B2B and B2C, or business-to-business and business-to-consumer, trading platforms.
BANKEX’s COO, Dmitry Dolgov, explained the partnership in a press release:
We were looking for a company that has understanding of both crypto and fiat money. Devexperts' experience in developing complex multi-asset trading platforms was the primary reason behind Bankex' decision to work with them. We are now well placed to provide convenient access to crypto.
Rise of STOs
BANKEX’s business aspirations are indicative of the growing interest in security token offerings, or STOs, in the cryptoasset industry. Issuers of initial coin offerings (ICOs) have been facing susbtantial regulatory backlash throughout 2018, after US regulators made it clear that most would be considered securities.
As a result, those dealing with ICOs are increasingly being prosecuted for dispensing unregulated securities offerings, and even individual developers have been targeted by regulating bodies. The STO is emerging in the eyes of some as the natural and acceptable evolution of legal tokenization.
Patrick Byrne, the CEO of Overstock.com, general cryptoasset enthusiast, and one of the most outspoken advocates for a new tokenization paradigm to replace ICOs, told CNBC in April:
The ICO craze of last year created a toxic waste dump of financial assets. To me, that world of ICOs is a Superfund site.
He added that in his opinion, STOs would replace not only ICOs but also the traditional initial public offering (IPO).