Security tokens continue to play an increasingly important role in the technology world. Things continue to look good, with a combined market cap of over $15 billion. Moreover, these investments remain affordable for most people, as the price per token is often below $10.
People who are used to numbers in cryptocurrency may not blink an eye at a $15.1 billion market cap. It is peanuts compared to Bitcoin and Ethereum, even though both currencies struggled and clawed to reach that value. The combined crypto industry is worth $976 billion, putting it miles ahead of the security token industry. It is unfair to compare the two, as they cater to very different users.
That said, one cannot overlook this combined valuation either. Only seven cryptocurrencies have an individual market cap more significant than the combined value of all security tokens. Moreover, three of those are stablecoins, further confirming how tough it is to surpass the $15 billion threshold for any other asset.
Enegra Group (EGX) has a market share that is more significant than Solana, Cardano, or Dogecoin. That is an intriguing development, as security tokens are often considered akin to low-cap coins under $100 million. For instance, Millennium Sapphire, the second-largest security token at $134.7 million, would not qualify in the crypto top 200 by market cap. However, that merely illustrates how different these worlds are and how dominant Enegra Group is today.
Even so, like cryptocurrencies, security tokens are more than the sum of their parts. They represent a new form of investing in promising companies and leveling the playing field for anyone interested. Additionally, investing in Millennium Sapphire ($0.9) or Enegra Group ($169.16) remains far more accessible than buying Bitcoin or Ethereum (unless in fractional amounts). More accessible investments are always beneficial to many people.
As overall interest in issuing securities increases, there is a need for additional trading platforms. While these tokens primarily traded on tZERO, the landscape has become more competitive. Even popular crypto exchange Bitfinex provides exposure to security tokens like Blockstream Mining Note (BMN) and Exordium (EXO). In addition, Mt Pelerin’s token is found on UniswapV2, as is Bitbond.
Other notable tokenized securities trading platforms today include:
The landscape continues to evolve, which is healthy for tokenized securities. The option to leverage technology to issue security tokens is a boon for companies, regardless of size or ambition. Moreover, these tokens represent unique investment opportunities, spanning real estate, company equity, a whiskey fund, etc. As a result, the opportunities are virtually limitless where tokenizing securities is concerned, and more companies have begun taking notice.
One may argue security tokens are still a “niche market”. That is a valid point, but the same applied to cryptocurrencies not too long ago. Today, it is hard to imagine a world where one doesn’t see crypto or blockchain companies advertising their services or making media headlines. A similar sentiment surrounds tokenized securities. They may not appear on your local newspaper’s front page, but that doesn’t mean one should ignore them either.
If anything, there is growing momentum for these assets. Aspen Digital recently announced a token buyback for Aspen Coin tokens, and STOKR is the first digital securities issuance platform in the EU supervised as a VASP. Moreover, LBBW and Vontobel will issue their first digital securities soon. Another key development is INX ONE becoming a fully-related hub to trade cryptocurrencies and tokenized securities.
Security tokens are here to stay, and our friends at STOMarket will continue to keep everyone apprised of new developments.
None of the information on this website is investment or financial advice and does not necessarily reflect the views of CryptoMode or the author. CryptoMode is not responsible for any financial losses sustained by acting on information provided on this website by its authors or clients. Always conduct your research before making financial commitments, especially with third-party reviews, presales, and other opportunities.
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