Blockchain startup Templum has announced a new regulated ICO exchange, following from the launch of Overstock’s ATS announced a matter of days ago.
Templum has partnered up with broker-dealer firm Liquid M Capital to launch the new platform, which is also to be known as Templum, in direct competition to the regulated market launched by Overstock’s blockchain arm in September.
The platform will enable investors to engage in trade in the secondary market, as well as providing a vehicle for ICOs to launch, directly on the platform, in a way that complies with the requirements of both the Securities and Exchange Commission, and the Financial Industry Regulatory Authority (FINRA).
The launch comes at a time of increasing pressure on ICOs and the companies behind them, with regulators across the world stepping up to warn of the risks of unregulated token issues. By bringing ICOs and trading in corporate tokens into the regulated domain, Templum hopes to help answer these concerns.
Christopher Pallotta, the company’s CEO, said the launch comes ahead of expected further restrictions on ICOs, and will provide investors and companies alike with a more regulated platform through which to exchange their tokens and raise capital.
“We know regulation is coming. So, we are trying to find a solution to work with the current ecosystem right now – so as to not hinder the extraordinary developments that we’ve seen over the last several months.”
ICOs have exploded in 2017, with over $2 billion raised in the year to date from this emerging asset class. The success of various ICOs has even begun to spread to more mainstream tech companies, with social messaging service Kik raising around $100 million from their ICO in the past few weeks.
However, regulators around the world have sounded a restrictive note on ICOs, with authorities in China and Hong Kong opting for outright bans, while authorities in the US have said some ICOs are legally classified as securities, creating a host of obligations on the issuer.
Overstock’s ATS launch was well received, as the first of its kind to come to market, providing a solid answer for companies and investors looking to engage in token issues.
With Templum now joining the fray, it is looking increasingly likely that regulated ICOs and secondary trading could allay regulatory concerns.