About Magic Circle-Our Vision

Magic Circle is a HongKong-based technology company that offers an innovative end-to-end flexible Security Token trading and exchange services. The company partners with licensed institutions to deploy and operate STO exchanges in multiple jurisdictions with a secure and compliant manner. Aim to unlock the traditional market and release more real liquidity.

Personally, we firmly believe in the potential of Security Token. Although it is still very early stage, the whole market still needs the improvement of infrastructure and tools. What’s more, the future ST market is bound to be a completely different mode of asset expression and trading!

At present, from the perspective of the market, more and more financial institutions and start-ups focus on creating issuing platforms and secondary trading, while some companies begin to develop and standardize tokenization. And a large number of institutional investors have not really entered the market, there is no real liquidity. At the same time, ST’s market is not really showing the prototype of exciting visions, which include:

1. Real programmable securities, not just abstract code expressions.
2. Efficient issuance and fundraising, multi-platform transnational joint one-key issuance. Existing platform offerings are no different from traditional investment banking in that they rely heavily on the distribution capabilities of a single platform.
3. ST portable and free compliance transactions.

The existing ST cannot flow across platforms and markets/judicial areas. The issuance and secondary transaction of each ST are still limited to a single platform. Meanwhile, for the so-called compliance requirements, user registration is cumbersome, KYC/AML process is complex and inconsistent, and the repeated cost is high.

All this has prevented the building and improvement of what we hoped would be a new world of finance: Efficient Fund-raising and Free Trading. If we compare cryptocurrency markets, we think Self sovereign is one of the most critical factors. The technical attributes of cryptocurrencies allow the holder to control cryptocurrencies completely and efficiently:

1. Peer-to-peer trading;

2. Unregulated flows that easily move from one exchange to another, leading to better price discovery and arbitrage;

3. Adequate security/privacy;

4. Further, we need more trading tools, such as leverage and collateral, automated continuous trading, global order book, multi-platform joint offering, etc.

And now the so-called compliance of ST is a copy of the Nasdaq, in essence, investors are still bound within the platform account system, buying and trading behavior had been confined to a single platform, and the expectation of pure platform between each other get through the business logic of the behavior, basically any one platform for ST protocol and trading patterns and different regional regulatory complexity for each.

To further break through the existing liquidity constraints, we must start with the basic concept of rights, learn from the model of cryptocurrency market development, and create a new expression of assets and different ways of issuing and trading, while providing different personal/institutional investor tools and regulatory tools.

By Magic Circle Co-founder：Doer QU