The company that provides services to private equity, real estate, funds, and other institutional investors is now offering to issue asset-backed security tokens for its clients. AlphaPoint believes that tokenization will increase liquidity for high value asset classes.
As per the announcement, the updated service will allow institutions to create and trade tokens securely and privately.
AlphaPoint said that its new security token service is already used by a real-estate private equity firm Muirfield Investment Partners and an asset management firm Laureate Digital Securities Ltd. While the first is going to issue its own tokens to create a private equity investment structure, the second hopes to reduce the amount of time it takes to onboard customers.
AlphaPoint CEO Salil Donde claims that the service allows users to tokenize illiquid assets and then trade them on an exchange or licensed platform. Moreover, he believes that the service will drive institutional adoption of security tokens, as it purportedly helps to reduce costs and optimize contract execution.
Donde also stated that blockchain technology, which is underlying the tokenized assets, will improve transparency and facilitate trust between investors and issuers.
Earlier today, French hardware wallet producer Ledger partnered with Hong Kong custodian Legacy Trust to offer institutional cryptocurrency custody services. The new offering will be based on Ledger Vault, Ledger’s institutional wallet manager.
Yesterday, March 27, the United States-based operator of crypto exchange Huobi, Hbus, has formed a new team to launch institutional products and services. The company is now evaluating several potential services designed for institutional clients, including token lending and over-the-counter trading.