Creating a Needed Platform for Tokenized Securities
DESICO is a new company aiming to revolutionize the area of tokenized securities via an investing and trading platform. In a press release obtained by BlockTelegraph, DESICO recognizes that one of the key issues related to 2017’s ICOs was the lack of regulation. In response, the team seeks to match the ideal level of regulation with blockchain and tokenization benefits.
There has been a great deal of interest in tokenized securities over the last few months. These securities need a highly regulated platform for investment and trades that can handle everything associated with tokenized assets. DESICO can fulfill this need, saying that their goal is to “build an end-to-end infrastructure to issue and trade Tokenized Securities in full compliance with the EU member state law.”
The team behind DESICO has some fundamental beliefs that greatly influence the way they’re developing the platform, stating that “ICOs lack investor protection (no real shareholders rights, misleading information by ICO issuers, lack of transparency post-ICO, scammers, fraudulent entrepreneurs).”
The team also recognizes challenges ICOs face, including difficulties interacting with traditional banking systems and problems getting listed on cryptocurrency exchanges.
Security is Paramount
Although there is a great deal of potential in crypto, the lack of legal certainty and security limits it at the moment, DESICO said.
They aim to get the attention of three different consumers. One of these is startups that want to issue tokenized securities while being legally compliant. The second is investors who want a secure, transparent, and safe method of investing in tokenized securities. Finally, traders who want to trade various tokenized securities within the DESICO ecosystem in the tokenized securities exchange, which is the secondary market.
DESICO is based in both Paris and Vilnius (the capital of Lithuania), a member of the European Union. Lithuania raised the third-most ICO capital in Q1 2018, following the United States and China. In addition to this strong history of interest in ICOs, DESICO chose Lithuania for a reason it shares with other FinTechs: “EU passporting reasons.” The company views the location as less important than their main goal of “legal compliance and safety” of everyone involved.
Because of DESICO’s location, the Bank of Lithuania will regulate it, and the European Central Bank supervises this entity. DESICO will operate under three licenses, including a crowdfunding license, a European E-money license (for the fiat/crypto payment system), and a financial brokerage license.
DESICO feels that a company that gives access to tokenized securities while staying legally compliant is exactly what the crypto industry needs. This project does show a great deal of promise in the loosely regulated crypto space.