In a recent press release the famous Bitfinex platform, one of the largest crypto exchanges in terms of volume, has announced that it will be launching a new product for STOs: Bitfinex Securities Ltd.
As the name suggests, Bitfinex Securities is designed to provide investors with another category of investment products, namely securities, thanks to the regulation obtained from the AIFC Fintech Lab.
It has been rumoured for some time that Bitfinex was going to open up to security tokens and so insiders have been expecting this.
Bitfinex pioneers STOs
This product makes Bitfinex a pioneer in the industry, allowing users to get shares in the companies whose security tokens they buy, as Bitfinex CTO Paolo Ardoino explained:
“As a pioneer in blockchain-based securities, we aim to be the most liquid exchange of its kind in the world,” said Paolo Ardoino, CTO at Bitfinex Securities Ltd. “Bitfinex Securities Ltd. provides a regulated platform serving small and medium-cap companies that are currently underserved by existing, inefficient capital markets.”
Bitfinex as an all-in-one platform
It is also interesting to note that thanks to this recent news, Bitfinex becomes a platform that users will be able to use for an infinite range of investment instruments and products.
In fact, most exchanges do not have a variety of assets and derivatives in so many different areas and this is obviously a limitation because users would have to switch from one platform to another.
Let’s not forget that Bitfinex has almost 1 million visits per week and trades volumes for billions of dollars every day.
In addition, we must remember that there is no shortage of companies linked to the crypto world and that are listed or that will be listed, both the more classic ones such as those linked to crypto mining, but also those who offer crypto services, such as exchanges themselves, a case known to many is Coinbase, but in the future others will follow the same path.
The security platform will be operational as early as this week. Users will have to complete the KYC verification process to use this service.
“Bitfinex is a rock of the cryptocurrency industry. Paolo’s built this infrastructure that just won’t go down. It would probably take a nuclear strike to take down their infrastructure. Whereas with other exchanges, when trading volume is spikey then they go offline. You never see that with Bitfinex,” also added Samson Mow, the CSO of Blockstream with whom Bitfinex recently partnered by investing in a mining operation launched by the Canadian company.