Bithumb is set to establish a security token exchange in the U.S.
On November 1st, Bithumb announced it has stroke a deal with seriesOne, a U.S. based fintech firm, to invest in and provide technical support for the establishment of a security token exchange on U.S. soil.
SeriesOne plans to open the exchange upon obtaining approval from the Securities and Exchange Commission(SEC) within the first half of next year. The role of Bithumb is to provide the required technical support for building the exchange platform and oversee business operations.
SeriesOne chose to partner with Bithumb, because a provider of an alternative trading system (ATS) must partner with a firm that owns relevant technologies, as is required by the SEC.
A security token is a form of token that applied the concept of ordinary securities to a cryptocurrency with smart contract functions. Assets including property, natural resources and media content are tokenized to return profits to token holders, hinging on the success of the investment project.
Established back in 2013, seriesOne has been pursuing an array of projects including security token offerings(STOs), crowdfunding services and more. Going forward, it also plans to issue security tokens that comply with SEC regulations. Most recently, the fintech leader has founded its Korean entity named ‘seriesOne Korea.’
SeriesOne is also looking forward to its listing on NASDAQ in the latter half of next year, following its establishment of the security token exchange. If the dream comes true, this will make Bithumb the first Korean cryptocurrency exchange ever to list on the U.S. stock market.
"After due consideration of various major exchanges worldwide, seriesOne has decided Bithumb is the best fit as its technology partner and hence proposed partnership," said an unnamed employee of Bithumb, adding that, "as tokenization of assets utilizing blockchain will become a global trend, we aim to rise to a global financial company by leveraging on, and further developing, our technical expertise and knowhow."
Translated by Cha Soo-jin