The growing interest in cryptocurrencies like Bitcoin, Ethereum, and Litecoin has brought significant attention to blockchain’s transformative potential. While these assets reshape how we transact and store value, the digital securities sector continues to develop steadily. Institutional adoption is rising, and technological advancements are paving the way for a more regulated and efficient fundraising environment.
Below, we explore key recent developments and emerging platforms shaping the future of tokenized securities.
Advancements in Blockchain Infrastructure
As initial coin offerings (ICOs) have declined, companies are prioritizing solutions for compliant digital securities issuance, often referred to as Security Token Offerings (STOs). This shift is evident in the launch of upgraded blockchains with native support for security tokens.
Two notable examples come from established industry players: Stratis and NEM.
Stratis and the STRAX Blockchain
Stratis, a UK-based developer, transitioned from its original STRAT token to a new blockchain named STRAX. This move aligned with broader industry trends, reducing emphasis on ICOs and increasing focus on decentralized finance (DeFi) and regulated capital raising.
Shortly after deploying STRAX, the company introduced a dedicated STO platform built on its new blockchain. In an official release, Stratis highlighted the benefits of blockchain-based crowdfunding, particularly through STOs, and the power of digitizing non-fungible assets. The platform has been designed to meet regulatory standards, with ongoing efforts to secure approvals from U.S. regulators like the SEC.
👉 Explore advanced tokenization platforms
NEM and Symbol Blockchain
NEM’s Symbol blockchain, though announced earlier than STRAX, launched shortly after. Designed for enterprise use, it supports several advanced features:
- Hybrid chain capabilities (deployable as public or private networks)
- Cross-chain swaps with major cryptocurrencies like Bitcoin and Ethereum
- On-chain multi-signature smart contracts
- Protocol-level support for digital securities
Upon launch, Symbol quickly attracted institutional interest. A partnership between Wave Financial and NEM was announced to issue digital securities representing ownership in a Kentucky whiskey fund on the Symbol blockchain.
Existing XEM holders were offered a 1:1 airdrop of XYM tokens to encourage participation in the new network.
Emerging Platforms in Digital Securities
While some projects have exited the market, new entrants are emerging with fresh approaches to security tokenization.
Atlas One
Based in British Columbia, Atlas One is a fintech firm focused on servicing capital markets through digital securities. The company recently announced that the Canadian Securities Administrators (CSA) granted it an Exempt Market Dealer license.
This status allows Atlas One to sell securities without a prospectus, providing greater operational flexibility and positioning it as a significant player in Canada’s digital assets ecosystem.
Archax
Archax, one of the most anticipated regulated digital securities exchanges, continues to prepare for its public launch. The platform is expanding its team and forming strategic partnerships to attract issuers and investors.
A recent collaboration with MOSS, a digital carbon offset platform, underscores Archax’s commitment to environmental, social, and governance (ESG) principles. The exchange plans to measure the ESG ratings of all listed issuances and facilitate access to carbon tokens for offsetting emissions.
Graham Rodford, CEO of Archax, emphasized the platform’s digital-native and sustainability-focused design. The exchange also appointed Richard Spade as Head of Operations to ensure a smooth and successful launch.
Neufund’s Revival
Neufund, once a leading platform for digital securities offerings, faced operational challenges due to new European regulations. However, the project recently secured €4 million in new funding from investors including Atlantic Labs, Freige Capital, and notable angel participants.
With this support, Neufund aims to re-establish itself as a key player in the security token space. The company plans to obtain the necessary financial licenses, enhance user experience, and incorporate more human-centric services rather than operating as a fully automated platform.
Frequently Asked Questions
What are digital securities?
Digital securities are tokenized versions of traditional financial assets like stocks or bonds. They leverage blockchain technology to enable faster settlement, reduced costs, and improved accessibility while complying with securities regulations.
How do Security Token Offerings (STOs) differ from ICOs?
STOs are regulated fundraising methods that comply with securities laws, offering investors legal protection and asset-backed tokens. ICOs, in contrast, often utility tokens and generally operate with less regulatory oversight.
What role do regulators play in digital securities?
Regulators ensure that digital securities adhere to existing securities laws, protecting investors from fraud and malpractice. Compliance includes licensing platforms, enforcing disclosure requirements, and monitoring trading activities.
Can digital securities integrate with traditional finance?
Yes. Many digital security platforms are designed to bridge traditional and blockchain-based markets, enabling interoperability with conventional banking, custody services, and trading systems.
What is the significance of ESG in digital assets?
Environmental, social, and governance (ESG) criteria are increasingly important to investors. Blockchain projects like Archax are incorporating ESG metrics to promote sustainable investing and reduce carbon footprints.
How can investors participate in STOs?
Investors typically need to undergo identity verification and meet specific eligibility criteria based on jurisdiction. Participation often occurs through authorized platforms or broker-dealers.
The digital securities industry is maturing rapidly, with stronger infrastructure, clearer regulations, and growing institutional interest. These developments signal a promising future for blockchain-based finance, offering new opportunities for investors and companies alike.