Security token platform TokenSoft has announced that it has made an investment in a broker-dealer registered with the U.S. Securities and Exchange Commission (SEC).
Based in San Francisco, TokenSoft offers a suite of technology and security products that enables companies to use digital assets as a growth strategy. The company said the investment decision was driven by the need to expand client service offerings to meet the growing demand. It will now be able to provide its clients with “true end-to-end support for the launch and management of their digital assets.”
The broker-dealer has been renamed as TokenSoft Global Markets, LLC, and will expand the range of services available to TokenSoft clients, including referrals to exchanges or brokers, custody solutions, or private placements services.
"As a result of rapidly growing interest in the security token market, we have been inundated with requests for broker-dealer support services that we historically have not been able to provide," said Mason Borda, CEO of TokenSoft. "We heard our clients, and now we're answering. With this investment, we are building a one-stop-shop for digital asset issuance and management – enabling us to expand our security and compliance support to every stage of a digital asset's lifecycle."
TokenSoft clients will now have the option of choosing between hosting a token sale themselves, or working with a broker dealer like TokenSoft Global Markets to manage a token sale on their behalf. In the case of the former, issuers would be able to achieve their goal by using TokenSoft's easily customizable compliance platform and self-custody solution, the Knox Wallet.
For clients who wish to leverage the expertise of a broker-dealer, they would have the option to approach TokenSoft Global Markets for guidance and hands-on support at every step of the sale process.
"The new services offered by TokenSoft Global Markets will be fully integrated into our high touch customer experience," said Lawson Baker, Head of Project Zero at TokenSoft.
In addition to the investment, TokenSoft has the ability to acquire 100% of TokenSoft Global Markets, subject to regulatory approval.
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