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Security Token issuance platform Tokeny raised $5.64 million from EU-based Euronext

security token issuance

Luxembourg-based security token issuance and management platform — Tokeny has raised a cool $5.64 million from EU-based Financial Institution Euronext, according to InWara’s Market Intelligence Platform.

Euronext is one of the leading pan-European exchange in the Eurozone spanning Belgium, France among numerous other jurisdictions. Following its investment strategic investment, Euronext earned a 23.5% stake in Tokeny with strong governance representation.

This deal holds significant strategic value as security tokens could purportedly bring increased efficiency, transparency and liquidity to the securities market through the issuance and trade of digital assets. Hence when the digital assets market starts flourishing, Euronext will have a significant advantage over its more traditional competitors.

But despite the deafening hype around Security tokens and Security Token Offerings, the rate of adoption by existing market participants is still underwhelming. For example, more than a year later since the hype around STOs started, the number of STOs have barely increased. During H1 2018, following the shocking ICO crash, as many as 49 STO projects launched but a year later in H1 2019, that number only grew by 16% YOY to 57 STOs — according to InWara’s H1 2019 report

On the other front, STOs did raise more funds this year than compared to the previous.

Security token issuance

Source: Blockchain and Crypto report H1 2019

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STO projects 51% more funds during H1 2019 when compared to H1 2018, collectively raising a whopping $419 million. While this is impressive, it’s still a far cry from the $1.32 billion raised by ICOs and the $1.62 billion raised by IEOs. While the funds raised by ICOs have tapered by over 74% during the past year, IEO projects have had an incredible year — the funds raised by IEOs grew by over 6000%.

So it’s clear that despite the numerous benefits of Security Tokens, market participants have yet to adopt STOs as the go-to fundraising method.

 

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