AlphaPoint, a New York-based White Label Blockchain Solutions and Digital Asset exchange platform, has added capabilities in its security token service for institutional clients. The company considers that tokenization will augment liquidity for high-value asset classes. As providing services to private equity, funds, real estate, and other institutional investors, AlphaPoint is now offering to issue asset-backed security tokens for its clients. With this updated service, institutions will able to create and trade tokens securely and privately.
AlphaPoint’s new security token service is already utilized 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, the company said. Ahead of this announcement, CEO of AlphaPoint Salil Donde stated 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. He also pointed out that Blockchain technology, which is underlying the tokenized assets, will improve transparency and facilitate trust between investors and issuers.
In the context of providing token services to the institutions, last week, the US-based operator of Cryptocurrency exchange Huobi, Hbus, has organized a new team to introduce institutional products and services. Additionally, the company is now assessing many potential services aimed at institutional clients, including token lending and over-the-counter trading.