Many Exchanges are racing to launch the first regulated exchange for security tokens. Here is a list of companies trying to launch fully compliant exchanges.
A pervasive theme in the security token market is the new liquidity that can stream into various asset classes through security tokens. There are three standard types of exchanges that do or will allow for the trading of security tokens:
- Centralised Exchanges: operated by a centralized company that controls trading.
- Decentralised Exchanges: less centralized company control, trades happen through a blockchain via the peer-to-peer matching of trades.
- Direct P2P trading: individual traders, broker dealers, or institutions directly interact with one another on trades.
Licensed and operating security token exchanges are still in their infancy and are slowly being rolled out across the globe. Although it is an early market there are a number of companies establishing exchanges in various jurisdictions.
Examples of security token exchanges include:
- Blocktrade (Liechtenstein)
- Archax (UK)
- GBX (Gibraltar)
- NEX (Liechtenstein)
- Stuttgart Borse (Germany)
- The Elephant (UK)
- SIX (Switzerland)
- MSX (Malta)
- Cointronix (Singapore)
- Multiple crypto-exchanges awaiting new MAS regulations to be enacted.
There are still other liquidity providers in the security token market that are seen in other traditional markets such as broker dealers, investment banks, family offices, etc. As the security token market grows the ways to access liquidity will continue to grow with it.