Security Tokens Realised was the first specialist Security Tokens event Compliancy Services has attended (and the first we are aware of.) We were delighted to be Gold Sponsors of what turned out to be an invigorating couple of days. From a corporate perspective, we see the tokenisation of assets as a key future development of our capital markets and so seeing who is already in play was very interesting.
My primary takeaway from our time at the event was the range of industry participants. They seemed to split along three distinct lines.
Firstly, and most importantly, are the firms and the entrepreneurs that are in or entering the market to provide regulated services. These include custodians, exchanges, brokers and advisors.
While these are still small in number at the moment, the simple fact is that, for the most part, Security Tokens – unlike traditional crypto assets – are securities. There is a full regulatory framework already in place in the UK. These firms can apply for licences and then trade in a compliant and regulated manner, here and now, today. My talk at the event was about this process and I was excited to speak to delegates afterwards whom have a wide range of business models that need licencing.
Other participants include the pure tech and platform providers. The quality of the platforms being provided by firms such as AlphaPoint and Tokeny – in very different sectors of the market – is a strong indicator as to where the industry is heading. Similarly, the different crypto custody solutions on show was interesting – and this is a safeguarding challenge that must establish itself in the market and with the regulator.
And finally, it was interesting to speak to professional investors in the space and note that digital tokenisation of assets is an area that will continue to attract strong attention from professional investors.
It’s a fascinating time for an emerging sector – we look forward to the rapid developments to come and playing our role in helping firms interpret and comply with the regulations.
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