Digital asset management just got much easier with the merger of Katalyse.io, Formosa Financial, and CEZEX
May 28, 2019
The merger integrates ‘the three t’s’ of tokenization, treasury management, and trading for the first time, resolving a major bottleneck in the STO market.
The digital securities market has generated strong investor interest but been hindered by pervasive fragmentation. Projects that support token issuance are abundant but the tokens often have nowhere to trade because of the lack of compliant STO (security token offering) exchanges.
That all changes with the merger of Katalyse.io., Formosa Financial and CEZEX, which creates a complete digital asset ecosystem covering token issuance and listing, treasury management and trading. By providing a straightforward interface for programming compliant smart contract functions and parameters, Katalyse.io brings simplicity and ease of use to the token issuance process. Formosa Financial provides a one-stop platform for digital asset management, ensuring optimization of crucial financial tasks. CEZEX is a fully licensed digital asset exchange operating under the regulatory aegis of the Philippines’ Cagayan Economic Zone Authority (CEZA). Formosa has obtained a Principal license from CEZA which allows it to serve as a Digital Asset sponsor, auditor, and third-party custodian of digital assets.
Combining the digital asset exchange with Formosa Financial’s treasury management platform allows issuers and other companies with digital assets to smoothly manage their corporate accounts in close proximity to the exchange, providing liquidity for their issued assets.
A security token is a blockchain-based investment contract into an underlying asset, such as a stock, bond, real estate or commodity. Unlike utility tokens, which typically exist outside of regulated environments, security tokens are subject to restrictions based on identity, jurisdiction, and asset category.
Security tokens have extensive programmability that could transform global capital markets. Smart contracts enable the tokens to automatically carry out important tasks, such as corporate governance, proxy voting, and dividend payments. Security tokens could also boost market efficiency as their smart contracts guarantee asset ownership, secure trading, regulatory compliance, a 24/7 market and of course, greater liquidity. If every asset class existed as security tokens, trillions of dollars in liquidity would be freed up.
“Through advances in technology it is now possible to create new financial instruments that are compliant, sound and have supporting ancillary services, bringing different key players in the marketplace together,” says Ryan Terribilini, chief executive officer of Formosa Financial.
“The merger makes it possible to issue a security token and then actually make it tradable by a global marketplace of investors and traders in a compliant fashion from beginning to end fast and seamlessly, whereas before it would have been fragmented and slower moving,” he explains. “Within this much larger ecosystem, we expect to generate consistent demand from clients as the scope of our service offerings grow and the need for high-quality infrastructure services within the security token space expands.”
At the same time, CEZEX has a strong pipeline of deal flow from applicant companies that would like to be listed on the exchange. In principle, all firms that have raised capital through regulated asset-backed security token offerings are eligible to list on CEZEX, provided they meet listing requirements. CEZEX will validate and accept applications based on approval of its customer due diligence requirements. The first batch of security tokens is planned to be listed in June.
“We have been testing in beta mode to streamline and optimize the workflow, and are now fully ready to manage and operate the exchange for listing and trading,” says Ludwin Lai, CEZEX’s head of listings and partnerships.
For more information about Formosa Financial check out our official website — An institutional grade digital asset management tool for blockchain innovators.
