Bithumb Signs A Deal With Fintech Firm and SeriesOne. Major South Korean cryptocurrency exchange, Bithumb, announced that it has signed an agreement to partner with an American fintech firm, SeriesOne. The intention of this partnership is to launch a securities token exchange in the U.S. It is reported by the South Korean Yonhap News agency on Nov. 1.
“SeriesOne actively sought to strike a deal with Bithumb after assessing it as the most suitable partner. Bithumb will ramp up efforts to develop into a global financial firm as the blockchain-based asset tokenization.”
-A Bithumb official reported to the news agency
How did the agreement happen?
Bithumb Signs A Deal With Fintech Firm and SeriesOne. SeriesOne effectively pursued Bithumb as a technology partner. SeriesOne believed that it would be the perfect match to enable them to achieve their mission. As Bithumb know how to build a tokenized security exchange.
In order for any company to be compliant with regulations, it must acquire an Alternative Exchange (ATS) license from the US Securities and Exchange Commission. In order to do this, it must have a partner who has the advanced technology required. This tokenized exchange is, however, based on blockchain technology where security tokens are cryptographic tokens that pay dividends. Also, share profits, pay interest or invest in tokenized assets to generate profits for holders.
Formed in 2013, SeriesOne is a fintech company which engages in crowdfunding, the blockchain, and security token offerings. Also, it has obtained approval for crowdfunding from the U.S. Securities and Exchange Commission. In addition to the company engaging in such businesses as crowdfunding, the blockchain, and security token offerings, it has its forte in real estate and media content.
Security tokens allow token holders to purchase goods and services and also offer investment returns and value appreciation, much like traditional security. Hence, SeriesOne will establish an exchange in the U.S. at the beginning of 2019.
During this month, Bithumb announced that it plans to launch a global decentralized crypto exchange. This exchange launched in partnership with blockchain firm One Root Network (RNT) which will be built on an Ethereum-based decentralized token transaction protocol called R1. The R1 protocol purportedly separates order matching and execution, which RNT claims will enhance security and matching efficiency.