Hong Kong-based fundraising platform BnkToTheFuture is planning to facilitate security token offerings (STOs). The move will be facilitated by a strategic investment in Diacle. Founded in 2013, Diacle is an appointed representative of Met Facilities LLP, which is authorised and regulated by the UK Financial Conduct Authority.
Established in 2010, BnkToTheFuture will be investing an undisclosed amount in Diacle, a cryptocurrency consultancy firm. The funds will be used to launch a shared security token advisory and various other investment services, the company said.
Simon Dixon, BnkToTheFuture founder and CEO, said they started their mission to allow investors to buy equity in companies building the future of finance. BnkToTheFuture began its existence as a crowdfunding platform in the UK and then migrated to Asia.
“We provided an opportunity for our community to invest online in a handful of unicorns and cryptocurrency exchanges. We see a similar trend with security tokens and together with Diacle we have built the infrastructure to allow for compliant security token offerings,” said Dixon. “Our investment in Diacle was designed to align our interests so we can drive the sector forward faster with two proven teams that have track records of bringing crypto-based security offerings to market.”
BnkToTheFuture’s management believes that a new wave of investors will be entering the evolving crypto asset space.
According to CoinDesk, BnkToTheFuture is receiving 45 applications a week for companies seeking funding with 18% seeking security token offerings.
BnkToTheFuture’s platform allows accredited investors to take part in equity fundraising rounds for top crypto firms such as Coinbase and Kraken. This helps to attract more traditional market investors who have not yet made substantial investments in cryptocurrencies.
However, Dixon notes that accessing liquidity pools remains a challenge, because the crypto market has not fully matured.
“The big challenge for the industry is investors want to invest in security tokens … but the liquidity is not there yet, as the asset class is very new.”
At present, BnkToTheFuture’s user base is said to consist of 87,000 professional investors. The company’s new service will assist security token issuers in adhering to relevant securities laws.
He added that BnkToTheFuture’s management will leverage Diacle’s experience with tokenizing real world assets. London-headquartered Diacle will be tasked with onboarding new UK and EU investors that wish to invest in the equity and securities tokens of crypto and Fintechs, according to a release.
Previously, BnkToTheFuture and Diacle launched the BnkToTheFuture Token (BFT). In 2012, Dixon and Diacle founder Adam Vaziri established the UK Digital Currency Association to spread awareness about Bitcoin (BTC).
The STO market is expanding rapidly. In 2017, there were reportedly only two STOs. In 2018, there were at least 25 STOs, and this year will be around 87, according to Autonomous Research. The global security token market is projected to be valued at $2 trillion by 2030, Chain Partners research estimated.