A press release confirms that seriesOne and Bithumb will partner to open a security token exchange in the United States. As per the agreement, the new exchange will offer traders compliant security tokens. In particular, the tokens will be subject to receipt of SEC, FINRA and other applicable regulatory approvals.
South Korean-based Bithumb is among the largest cryptocurrency exchanges in the world. On the other hand, seriesOne is a Fintech leader in the area of blockchain technology. As part of the agreement, Bithumb will invest in a seriesOne subsidiary with operations in South Korea. Further, Bithumb will provide technical support for the seriesOne entity.
Regulated security token exchange
The Korea Herald cites sources reveal that the security token exchange should be live before June 2019. In the deal, Bithumb will provide technological support. SeriesOne will provide logistical support as well as a substantial amount of funding.
A Bithumb official told The Korea Herald that the deal is a culmination of long weeks of due diligence. The official further elucidated that: “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.”
The companies expect to ride on their expertise in their fields to make the venture successful. In particular, Bithumb is a huge global player in the world of cryptocurrency. On the other hand, seriesOne already operates a platform that facilitates security token offerings in the US.
Interestingly, the platform operates “under SEC exemptions such as Reg CF and Regulation D.” This implies that the companies face a smooth ride ahead in the new venture.
Commenting on the deal, Back Young Heo, CEO of Bithumb reiterated that seriesOne will make a great partner. “We are not only impressed by the mix of talent between investment banking, compliance, and technology of the seriesOne team but also with their deep understanding of US securities regulations and how they apply to token offerings,” Heo remarked.