NEO Global Invest (NGI), the investment arm of the NEO Foundation, enters the market for asset-backed assets. For this purpose, NGI has invested in the Hong Kong security token platform Liquefy. The partnership aims to create a corresponding ecosystem based on NEO. This is clear from a press release that Liquefy in May on his website published has. According to this, the cooperation should make it much easier for publishers of security tokens to comply with anti-money-laundering guidelines (AML) as well as the identity verification of investors (Know Your Customer, KYC).
It’s important to develop a security token standard while the industry is still in its infancy. What differentiates NEO from other public blockchain protocols is the integration of NeoID, which allows KYC, AML and accreditation status to be stored on-chain [and] with privacy in mind. This allows issuers to monitor and record all transactions in the secondary market in order to remain compliant in several countries,
Liquefy CEO Adrian Lai quotes in the press release.
Liquefy believes that there is a significant need for compliance-as-a-service offerings in the growth market of digitally securitized securities.
The Liquefy platform will support NEO, giving NEO stakeholders access to the security token universe. The current process of transferring private securities is fragmented, cumbersome and expensive as investors’ KYC information is spread across multiple middlemen and compliance is a manual process,
the message goes on to say.
Security tokens in the west
Also from local latitudes there was recently news from the security token front . For example, the Swiss crypto start-up BlockState from Zug’s “Crypto Valley” is planning a trading center for digitally securitized securities. In doing so, BlockState is doing pioneering work by first pouring its own shares in token form and selling them on its platform. While Liquefy relies on NEO, BlockState’s own security token, the BKN, is based on Ethereum. The ERC20 token goes into pre-sale on June 18th. The investment target is two million euros.