0x and Harbor unlocks global liquidity for real-world tokenized assets
- 0x and Harbor team up to optimize a security token stack based on Ethereum open standards
- @DavidSacks of Craft Ventures and founding chairman of Harbor joins the 0x advisory board
SAN FRANCISCO, Sept. 7, 2018 — The tokenization of real-world assets like real estate, private investment funds, private company equity, and fine art can help unlock liquidity and transform capital formation for trillions of dollars of traditionally illiquid assets. 0x and Harbor are working together to optimize interoperability between the standards-based 0x platform and the Harbor compliance protocol — critical layers in the tokenized security stack — to help facilitate compliant trading through the 0x relayer ecosystem.
0x is enabling the exchange of tokenized securities by providing developers an open protocol to build on. The 0x protocol lowers the cost of trading and enhances security as it is not a centralized third party that holds funds. It does this by lowering the barrier to entry for “relayers” to build on top of the protocol and allows trading for all generalized token standards. There are a growing number of relayers already on the platform and a large volume of liquidity has been amassed.
Many relayers in the 0x ecosystem — like The Ocean and Paradex — are planning to support the trading of tokenized securities. Some have already obtained the appropriate regulatory licenses and others are in the process of obtaining licensure. Soon, there will be a vibrant ecosystem of regulated exchanges providing compliant trading of security tokens, optimizing different services for different parts of the market and yet potentially sharing one worldwide order book, all enabled by the 0x protocol..
Harbor provides a compliance platform that ensures tokenized securities meet regulatory requirements on issuance and secondary trades, both peer-to-peer and across multiple exchanges simultaneously. The Harbor solution of centralizing compliance and decentralizing all other aspects of liquidity allows issuers to let their security tokens trade on multiple exchanges worldwide and be confident trading restrictions are enforced. Both 0x and Harbor are building on the Ethereum blockchain using open standards to enable interoperability with the growing ecosystem of wallets, custodians, trading platforms, and related services.
“We are excited by 0x’s vision of liquidity 24/7/365, around the globe across multiple exchanges, with near instantaneous settlement and no counterparty risk. The blockchain — and only the blockchain — can deliver that vision,” said Josh Stein, Harbor CEO. “Harbor is an integral compliance layer that enables this transformation of liquidity. Issuers can now allow their tokenized securities to trade to the limit of their liquidity across multiple exchanges, confident that Harbor is enforcing their compliance requirements on every trade.”
Harbor provides a security token issuance platform and a compliance protocol based on its ERC-20-compatible Regulated-Token (R-Token) standard, which automatically bakes compliance into a token issuance and subsequent secondary trading. The process of taking a traditional asset, such as real estate, securitizing it, tokenizing it, and trading those security tokens requires interactions between a few different layers of the blockchain technology stack. Harbor’s automated compliance and the free, trustless trade execution and settlement from the 0x protocol, means this process will be more efficient and accessible.
“It is fascinating to see the 0x protocol and the Harbor R-token standard combined to establish more liquid and efficient markets for alternative assets,” said 0x CEO Will Warren. “We believe this emerging security token technology stack has the potential to unlock an incredible amount of value. ”
0x is also announcing the addition of David Sacks to its advisory board. David was COO and product leader of PayPal, the founder and CEO of Yammer (acquired by Microsoft), co-founder of Harbor and co-founder and General Partner at Craft Ventures. Craft has invested in tangential projects in the blockchain space including Rare Bits and Set protocol, in addition to incubating Harbor.
Sacks commented, “0x is an important and critical component in what will ultimately be a global market for tokenized assets and many forms of value. Together, 0x and Harbor provide critical, complementary layers in the security token stack to facilitate this tremendous market opportunity.”
David’s operational expertise, business acumen and focus in the tokenized securities space will help guide 0x towards its mission of creating a tokenized world where all value can flow freely.
0x was founded by Will Warren and Amir Bandeali and wants to create a world where all assets can be tokenized and freely exchanged. It’s an open, free to use protocol that allows frictionless and decentralized peer to peer exchange of tokens and is the most widely adopted and secure protocol currently operating on the Ethereum blockchain. The 0x protocol underpins the decentralized financial system of the future, where anything of value can be tokenized and traded on public blockchains. It provides a secure and permission-less platform for developers to build decentralized applications on top of, providing liquidity and exchange functionality to any application plugging into the ecosystem. 0x itself has spawned numerous successful startups through its ecosystem, so-called “relayers”, it includes Paradex which was acquired by Coinbase. 0x looks forward to powering the decentralized exchange of all security tokens by being a free, open protocol that is interoperable with all mainstream security token standards.
Harbor is reengineering private securities with blockchain technology to help usher in a new wave of tokenized securities backed by real-world assets, such as real estate, company equity, investment funds, and fine art. The Harbor platform, powered by its compliance protocol and Regulated Token (R-Token) standard, is the first to ensure tokenized securities comply with existing securities laws on every trade, everywhere across the globe. Harbor has raised more than $40 million and is backed by leading investors, including Founders Fund, Andreessen Horowitz, Craft Ventures, Vy Capital, Fifth Wall, Valor Equity Partners, and Pantera Capital. For more information, go to www.harbor.com
About 0x Relayers:
The Ocean offers fast and secure Ethereum and ERC20 token trading. Trade wallet-to-wallet on a high performance, institution-grade, decentralized platform. More liquidity, lower fees, and less risk.
Paradex allows you to trade tokens directly from your wallet. No trading fees, no custodianship, no account sign-ups, no compromises. Acquired by Coinbase.