Many experts have touted the potential of blockchain technology and tokenization to transform global financial markets as one of the most significant discoveries in the last decade, with efforts to get the industry going already underway.
Interestingly, a study conducted by the Frankfurt School Blockchain Center in partnership with Swiss security token issuer, Blockstate has provided more insight into the emerging space, and which countries are leading the race.
Per the study titled – The Global Digital Securities Ecosystem 2019 – there are more companies in Europe working on the development of the security token industry when compared to their U.S counterparts.
After identifying that startups, as well as traditional financial institutions, are among the major players in the space, the study noted that there are currently 88 companies that make up the European security token ecosystem.
Of those 88, the study identified Germany and Switzerland as being home to the highest number of companies, that is, 20 and 15, respectively.
In the U.S, however, 83 companies are working towards the advancement of security tokens, also highlighting increased corporate and mainstream interest in the new fundraising mechanism.
Another highlight from the report is that one of the most significant challenges facing the growth of the industry is the lack of a regulated secondary market for trading security tokens. However, the research authors expressed optimism that such trading venues are already on the way, with the Six Swiss stock exchange expected to launch one in Q4 2020.
Stmarket.co also reported in August that the Seychelles stock exchange operator, MERJ, was launching a similar trading venue for security tokens.