- The main motivation is to eliminate the existing financial barriers in the market
- The two companies intend to incentivize venture capital funds
- The partnership will help VNX proceed with their plans for a security token offering
The Luxembourg-based market and trading platform for tokenized venture capital assets, VNX Exchange, has named NEM blockchain platform as its strategic partner. The partnership will help VNX improve their existing standards and protocols for security token standards. According to a joint statement by both companies.
Common standards for Security tokens
VNX Exchange and NEM, the company behind the XEM coin, will collaborate to develop protocols and standards for security tokens on the NEM blockchain; the protocols shall be valid throughout the life cycle of the security tokens. The two companies will work to create a “liquidity program” meant to incentivize venture capital funds to invest in startups that will get into the NEM ecosystem.
The main motivation for VNX is to eliminate the existing financial barriers in the market and be able to unlock venture capital to invest in the asset class and attract a wider investor base which will include holders of EXM, NEM’s peer-to-peer cryptocurrency. XEM is the 17th largest cryptocurrency according to Coinmarketcap data and is trading at $0.107 at the time of writing.
VNX founder and CEO Alexander Tkachenko says he believes the new partnership will introduce new opportunities for the security token ecosystem and make it an attractive option for investors. The CEO stated:
“The tokenized assets in the market will be the future of the ever growing capital markets, and this is not all, as the blockchain technology will offer tremendous opportunities on how the finical markets will continue to operate.”
Commenting on the partnership, the interim president of NEM Foundation Kristof Van de Reck said he was excited to see projects like VNX whose aim is to bridge the wide gap between cryptocurrencies and the mainstream financial industry. He further said:
“This partnership gives us the ability to learn more about regulatory compliance specific to our technology and ensures NEM remains at the tip of the spear with regards to security token offering. We also look forward to growing NEM’s ecosystem by leveraging VNX’s platform.”
The CEO added that he hopes the partnership will help the company proceed with their plans for a security token offering besides helping them grow their platform. The NEM blockchain was established and designed in a way to ensure they keep the best speed and scalability in the market.
Focusing on regulatory compliance
The VNX Exchange is striving to develop a regulatory-compliant market that links investors and venture capitalists and works closely with leading European Capital Market institutions and aims to assist in the development of an industry-leading platform.