Bringing liquidity to the STO market by trading of security tokens through licensed custodians and security brokers
It has been 2 decades and i am proud to inform you that crypto currency and the blockchain has not only grown; it has evolved into a large hemisphere that solves different sort of problems for mankind be it in the healthcare, in education, in lifestyle, in hotel and travels, in sports, in financial institution and more.
The evolvement of the blockchain and crypto currency did not leave out assets or bonds; it is so huge that the blockchain embraced non fungible items (NFT) and made sure artists, designers can monetize their skills in the blockchain.
Do you doubt the embracing nature of the blockchain or the fact that it is an all inclusive space in the world ? Then you should read up about the Fractionalized NFT.
What is a Fractional NFT?
A fractional NFT is a whole NFT that has been divided into smaller fractions, that allows seperate numbers of individual to claim ownership of a piece of the same NFT. The NFT is fractionalized using a smart contract that generates a set number of tokens linked to the indivisible original NFT item.
Benefits of Fractionalized NFTs for NFT Owners
- Retain ownership while freeing up liquidity.
- Increased utility for NFT piece through DeFi applications.
- Positive price correlation through fractionalization.
- Larger audience as more investors would have access to a singular NFT.
- Building a larger community with lower floor prices for new NFT investors
And guess What ? Fractionalized NFTs are forging the next chapter of this fast-growing sector in crypto, blockchains, and decentralization.
Despite the mentioned success and progress stated in the 3 paragraphs above; there are major challenges especially for Security Tokens and assets in the crypto currency world.
What are Security Tokens?
Security tokens are a kind of token that represents some kind of ownership, most commonly a share of the company issuing the token to crypto currency users. The concept is the same as buying shares of stock on a traditional stock exchange. For this reason, security tokens are sometimes referred to as equity tokens.
Security tokens are regarded as securities by financial regulatory authorities. This makes a security token subject to regulations, just like ordinary stocks and bonds. Examples of security tokens would include:
- Private Equity
- Commodities (Gold, Oil e.t.c)
- Real Estate
- Gaming Assets
- Virtual Reality Assets
- Venture Capital
Depsite this huge use case and advantage to separate individuals, Security Tokens have failed to thrive or gain massive adoption due to separate problems which involves
1. Lack of real asset exposure in decentralized protocols — These highlights the face that there are no genuine exposures to security assets in terms of equity rights.
2. License difficulties — STO (Security Tokens) are a huge problem for decentralization when you remember you are subject to security laws.
3. Zero or non existent licensed exchange platform for STO.
4. Poor liquidity to trade.
The biggest problem yet for Security Token is STO token offering, An exchange to list the STO products as well as getting market makers. These are solutions that the IX Swap provides!!!
What is IX Swap ?
IX Swap is a globally distributed organization with a diverse team working together across multiple countries and still growing. IX Swap will be the FIRST platform to provide liquidity pools and automated market making functions for the security token (STO) & tokenized stock industry (TSO) while also facilitating the trading of security tokens through licensed custodians and security brokers which will provide actual ownership and claim over these real world assets.
To simplify into basics, The IX Swap platform will let individuals
- Join Security Token Offering events
- Trade Security Tokens in the IX Swap dex
- Provide LP to Security Tokens
- Participate in Staking events
- Have access to AMM and DeFi Liquidity pools
- Have access Liquidity Pools for Non-Custodial Assets Cryptocurrency
