According to a company release, BnkToTheFuture and CoinStreet Capital have strategically invested in major U.S-based broker-dealer BMI Capital, as the race for which firm would dominate the security token space intensifies.
A report on the latest investment by Crowdfund Insider explains the BnkToTheFuture’s investment in BMI Capital is for the broker-dealer to allow the former access to sell security tokens to institutional investors in the U.S an Asia.
Specifically, BnkToTheFuture hopes that investing in BMI Capital will open up the opportunity for the company to “reach a wider pool of investors and launch new US compliant security token offerings.”
Simon Dixon, CEO & Co-Founder of BnkToTheFuture further highlighted this significant goal, saying in the announcement,
“Our investment in the holding company of BMI Capital was designed to align our interests so we can drive the sector forward faster with products that make global securities law compliance easier to comply with.”
Dixon further disclosed that his company has built infrastructure to allow for compliant security token offerings, with a range of new products expected to launch in 2020.
Notably, CoinStreet’s involvement in the deal is because the startup facilitates roadshows for institutional investors in Asia, and is now poised to use that advantage to play in a relatively new industry.
Samson Lee, CEO Coinstreet Partners acknowledged in this regard that “while the market is at its early stage, STO will be a cost-effective and efficient way for solid corporations for seeking growth funding.”
Aside from BnkToTheFuture, it is no longer news that other giant companies across several sectors are betting big on the future of security tokens.
Earlier in the day, Stmarket.co reported that recently launched Swiss crypto bank, SEBA plans to raise $100 million in a security token offering scheduled for next year.