In spite of their relative youth, security tokens have been lauded as the inevitable future of the crypto and blockchain industry. While some pundits would beg to differ, security tokens moved a step closer towards global adoption on Thursday, as it was revealed that Bithumb has plans to launch a cutting-edge U.S.-based platform.
South Korea’s Bithumb Joins Hands With US-based SeriesOne
Per an exclusive report from Yonhap News, a Seoul-based news outlet, Bithumb, a leading cryptocurrency startup in South Korea, has just inked a strategic deal with SeriesOne. The unexpected deal, which was relayed by anonymous industry sources, reportedly outlined a collaborative effort between the two aforementioned entities that would see SeriesOne, an America-based crypto-centric crowdfunding portal, help Bithumb establish a platform in the United States.
The platform, which will be backed by “technical support” from SeriesOne, will reportedly be hinged on the trading of security tokens, which are blockchain-based tokens that mirror real-world assets deemed securities by financial regulators.
Commenting on the apparent move, an official from the aforementioned South Korean cryptocurrency platform told Yonhap:
“SeriesOne actively sought to strike a deal with Bithumb after assessing it as the most suitable partner… Bithumb will ramp up efforts to develop into a global financial firm as the blockchain-based asset tokenization is expected to spread globally down the road.”
According to those familiar with the matter, SeriesOne is eyeing to launch the security token platform, which remains unnamed, in the U.S. during the first half of 2019. While SeriesOne is a lesser-known startup in the broader cryptocurrency ecosystem, many have high hopes for the partnership, as the crowdfunding firm has been accredited by the Securities and Exchange Commision (SEC), the de-facto regulatory face of America’s financial markets.
On the other end of the partnership, SeriesOne has established a South Korean subsidiary, presumably with Bithumb’s help and local expertise, to issue and offer security tokens within the Asian nation.
This move comes only weeks after Bithumb and One Root Network unveiled their globally-focused decentralized exchange (DEX), which allows consumers to issue crypto-to-crypto trades without routing their information through a centralized authority or body.
The Push For Security Token Adoption
For the uninitiated, as alluded to earlier, security tokens are a recently-established genre of cryptocurrency that allows for retail, institutional, and merchant investors to hold securitized assets, like shares, bonds, and options, via blockchain technologies.
While the classical management system for securities is still functional, the