AbacasXchange Inc. and DigiShares Partners on Digital Assets
AbacasXchange and DigiShares, a provider of white-label issuance solutions for digital assets, have signed a partnership agreement to develop their collaboration further to provide end-to-end solutions for asset managers looking to digitize their assets and achieve better liquidity.
We are currently witnessing a global megatrend where the entire financial industry is digitizing their processes and their assets, and increasingly using blockchain technology for this purpose. The process of digitizing assets on the blockchain is called “tokenization”. The ownership of assets such as shares, bonds, debt instruments, etc. is being represented as tokens on the blockchain, enabling processes related to issuance, transfer and trading of securities to be rendered much more efficient, more transparent and more secure.
Also, the consensus-based trust paradigm of blockchain will be extended to cover securities, eliminating doubts about ownership and settlement, and enabling the elimination of middlemen such as banks, custodians, notaries, and other types of trustees that are used to a role as a third-party guarantor. This will lead to reduced fees and costs; reduced scope for errors and inconsistencies; and highly reduced settlement times.
Claus Skaaning, CEO, DigiShares, says: “The tokenization industry is still not able to deliver on its promises of reduced fees and increased liquidity, mainly due to the lack of operational security token exchanges on the market. We have partnered with Abacas as we see them as a potential leader in the space and a potential provider of liquidity to the many issuances we expect to facilitate through our platform. Abacas has a strong vision for how liquidity can be provided to assets in the real estate, renewables, and private equity markets that is shared by DigiShares.”
Mr Skaaning adds: “We will work together with Abacas on developing end-to-end solutions where asset managers can be provided a transparent and secure process of token issuance and subsequent listing on a highly efficient, liquid and transparent exchange such as Abacas, prepared for digital assets from the start.”
Mark VanRoon, co-CEO, AbacasXchange states: “Regulation and compliance remain challenges in the blockchain world as tokenization is rapidly outpacing compliance. As the new order seeks DeFi, our goal is to create a trading venue and partnerships that mitigate many of the current issues facing investors, issuers and regulators in this new paradigm. We are pleased to work with DigiShares as they seek to place a compliance “wrapper” on the companies they tokenize.”
Asset managers that are interested in digitizing their assets and entering the new world of tokenization are welcome to contact either Mr. Skaaning or Mr. VanRoon for further consultation.