The OSC (Ontario Securities Commission) has allowed TokenGX, the security token startup, to carry out pilot testing of secondary market trading of digital securities. With this, TokenGX, which is TokenFunder’s affiliate company, has become the first entity to have received such an approval from the Ontario regulator. TokenFunder is a start-up that assists other companies in raising funds via token sales. Per the reports, the trading will help TokenFunder to provide investors with liquidity.
It is important to note that TokenFunder and TokenGX both run on the public blockchain of Ethereum. Hence, it is possible for anyone to view an initial token offering or the secondary market trading transaction.
The filing also revealed that TokenGX has been working to receive approvals to run such a secondary market in more jurisdictions.
The approved secondary trading would occur on FreedomX, the platform built by TokenGX that leverages cutting-edge blockchain technology of TokenFunder. The trading will only be available to resident buyers and sellers of Ontario who have successfully undergone the KYC (Know-your-customer) process to become the whitelisted investors.
The announcement also revealed that both the retail and accredited investors could utilize the platform. However, retail investors can’t carry out trades exceeding 2,500 dollars. Moreover, the platform allows any participant to generate new orders. Smart contracts execute the trading activity once the traders have made trades via the order book interface.
On this exciting new development, the co-founder of TokenGX, Laura Pratt, said that their FreedomX platform would define Canada’s next-gen trading and unlock great value in private markets. Continuing further, the co-founder said that they envision a world in which all the assets would be tradeable and tokenized.
Alan Wunsche, the co-founder of TokenGX, also shared their excitement over receiving such support from the OSC. Wunsche also added that through recording of digital shares on the public blockchain, they would be able to achieve capital cost reduction for the issuers as well as offer liquidity via the secondary marketplace for trading.