US-based financial and regulatory tech specialist Seccurency has entered into a partnership with investment bank Entoro Capital, offering Entoro access to its products and services. Seccurency is a tech provider offering a security and compliance products to financial trading companies.
The partnership is intended to improve the security of Entoro’s Security Token Offerings (STOs), by integrating a layer of compliance into the process. Seccurency technology will also be rolled out to the Entoro to enable frictionless enrolment, subscription, escrow, tokenisation and token issuing services to issuers and investors.
STOs have been touted as the new boom in the financial services industry and have seen a rapid rise in 2018. They are similar to the now ubiquitous, yet legally dubious Initial Coin Offerings (ICOs) in that tokens or coins are offered by companies for purchase as a form of crowdfunding. However, STOs are a legally compliant variant. Traders can opt to hold, drade or sell tokens purchased during the offering. Since security tokens are actual financial securities, the tokens are backed by assets, profits, or revenue of the company.
The new infrastructure will allow Entoro to host securities offerings on a wide array of distributed ledgers, as well as legacy financial services platforms, thus opening up new markets for its security tokens offer.