NEO’s first security token ecosystem is set to come out through a new partnership with Liquefy, a Hong Kong-based end to end security issuance, distribution and trading platform.
NEO Global Development (NGD) announced the news in a joint statement, saying the new platform is yet another step closer to a futuristic economy where securities and blockchain merge.
The new offering is a clearing and settlement platform based on the blockchain that lets companies raise capital with security tokens. It also provides a secondary market liquidity for ICO tokens that are offered and sold as securities.
NEO, which is sometimes called the , also uses digital identities to tokenize assets and automate the management of the process using smart contracts.
NGD has recently backed Digital Asset Alliance (DAA), a consortium of participants from various industries including liquidity providers, KYC/AML providers, issuance platforms and law firms. It has also created the “Global Blockchain Compliance Hub,” which aims to create a global almanac of blockchain-related legal details across different jurisdictions.
What is NEO?
NEO is a platform that was launched in December 2016 to allows people to write their own smart contracts on it, . It runs on a consensus system called . This means that elected nodes validate the system but must reach a 66 percent consensus before any decision can be reached.
This system is faster than proof-of-work, and because the ‘bookkeeper’ nodes have their identity verified, they have an incentive to be active and play by the rules. One disadvantage is that power is , and there will always be the possibility that nodes could collaborate to game the system.
The stated aim of NEO is to create a smart economy, that is, one which runs on smart contracts.
Commenting on the news, Adrian Lai, CEO of Liquefy said:” What separates NEO apart from other public blockchain protocols is the integration of NeoID, which allows KYC, AML and accreditation status to be stored on-chain while maintaining privacy. This allows issuers to monitor and maintain records of all transactions in the secondary market to remain compliant in multiple jurisdictions.”
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