Image via Kabuni.com
The Canadian Securities Exchange will be using the unique features of blockchain technology for a new securities clearing and settlement platform.
The CSE is introducing this new platform to allow companies to issue conventional equity and debt through tokenized securities, which will be offered to investors through Security Token Offerings (STOs). A key difference between this and blockchain cryptocurrencies is that the STOs will be subject to full regulation by securities commissions.
The CSE has signed a Memorandum of Understanding (MOU) with Vancouver-based blockchain company
Kabuni Technologies Inc. to issue tokens through an STO, trading on the CSE’s equity platform. This is the first time a tokenized security has been listed for trading on a recognized securities exchange.
This platform is expected to provide real-time clearing and settlement (as opposed to the conventional two business days under the country's main securities claring and settlement hub) with substantial cost and error reductions.
The CSE will operate this clearing house and is filing an application for approval from Canadian regulators. The technology has been licensed from New York-based
Fundamental Interactions Inc.