Saturday, February 4, 2023

Canadian Securities Exchange All-In on Blockchain “Clearinghouse”

Canadian Securities Exchange All-In on Blockchain “Clearinghouse”

The march of tokenization inches forward, as the Canadian Securities Exchange (CSE) is set to apply for a blockchain platform “for trading, clearing and settling tokenized securities.” Such a platform would create a regulatory pipeline, in that security tokens would be fully vetted by authorities before being listed.

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CSE: “Beyond the Limits of Traditional Equity and Debt”

Issuing tokenized debt and equity offerings on the blockchain may be a reality sooner rather than later, as the Canadian Securities Exchange is moving to apply for the rights to create a clearinghouse and settlements platform courtesy of blockchain technology.

Both the platform and the application for it would be firsts of their kind. The dynamic could be mark the beginning of a revolution in how traditional securities are exchanged, CSE CEO Richard Carleton noted:

“The Canadian Securities Exchange expects to be the first recognized exchange in Canada to introduce a fully developed blockchain platform for trading, clearing, and settling tokenized securities. By harnessing this technology, the potential exists to extend corporate finance beyond the limits of traditional equity and debt offerings.”

So move offer Initial Coin Offerings. “Security token offerings” may be the next big thing, at least in mainstream financial circles.

First Up? Kabuni Technologies Inc.

CSE has already inked a deal with 3D printing play Kabuni Technologies Inc., wherein Kabuni will be the first firm to issue a fully regulated security token upon the CSE’s proposed blockchain platform.


In a release announcing the deal, the unprecedented nature of the initiative was highlighted:

“The tokens would be traded on the CSE’s existing equity trading platform. This would mark the first time a tokenized security has been listed for trading on a recognized securities exchange.”

And this is likely just the first of many to come. Not just for the CSE, but for tokenized assets in general in the years ahead.

What’s your take? Do you see other institutions across the world following the CSE’s lead when it comes to creating blockchain clearinghouses? Sound off in the comments below. 

Images via Koreabizwire, CSE

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