MasterDAX Adds Security Token Offerings (STOs) Function

Wilfred Michael 

Wilfred Michael

News reporter

27 November 2018,
MasterDAX Adds Security Token Offerings (STOs) Function

The crypto exchange technology being developed by Digital China Group will now allow clients to easily integrate security token offerings (STOs) on their service.

According to a CryptoNinja, the STO integration on the platform will support primary and secondary markets and also comply with securities market requirement in the country of the clients using the exchange service.

MasterDAX reportedly has 63 clients with 11 already in the pipeline after entering the contracting process. With STO support now added, the platform is likely to get more converts in the coming months.


What Is MasterDAX?

MasterDAX is a 100% source code technology that allows to build their crypto exchange without starting from scratch. The solution is being offered as an exchange as a service solution and is already gaining traction in the industry.

In midyear, the project partnered with Microsoft to make their product a cloud-based service and relaunched it as MasterDax 2.0.


Why MasterDAX Has Rolled Out Support For Security Token Offering

With 2019 widely touted as the year of security tokens, the new addition had come as a little surprise and expected to go down well with those already using MasterDAX to power their exchange and new clients

U.S regulators have continued to crack down on Initial Coin Offerings (ICOs) for selling unregistered “securities” and even recently fined EtherDelta Founder, Coburn for opening a platform where such tokens are exchanged.

It is this regulatory barrier that is being solved by the use of Security Token Offerings (STOs). Under this model, tokens can be regulated under existing securities law while thousands of real assets can be tokenized.

With many STOs expected to go live next year, more exchanges supporting the crowdfunding model is supposed to be developed using structures similar to what MasterDAX has built.