The barrier between Wall Street and the blockchain just got a lot thinner.
Vancouver based Intellistake (CSE: $ISTK) said earlier this week that ST0x, a platform the firm invested US$150,000 in earlier this year has secured FMA approval for its EU Base Prospectus.
The green light by FMA allows ST0x to offer tokenized equities across Europe.
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“ST0x has continued to make strong operational progress, including obtaining EU Base Prospectus approval from the FMA,” said Jason Dussault, Chief Executive Officer of Intellistake.
Not so much another trading app the ST0x platform is more a regulated infrastructure layer.
Unlike synthetic assets that simply mimic price action, ST0x tokens represent a contractual Right of Exchange for the underlying physical shares.
These shares are held in segregated custody, ensuring that the token is backed by tangible value.
Intellistake says the tokenized equities are minted using the ERC-20 protocol, a widely used token standard that could eventually allow traders to use tokenized blue-chip US equities as collateral or liquidity accross the Ethereum (CRYPTO: $ETH) blockchain.
With regulators actively examining tokenization of public equities and institutions beginning to engage with it, Dussault adds that, “Intellistake’s role is to be positioned at the technology layer as this transition unfolds.”
By backing the platform, the company is securing an early position in the institutional migration to on-chain assets.
For the Vancouver company, the significance extends to North America as operational insights gained from Europe will directly inform Intellistake’s participation in the CSA’s Project Tokenization initiative in Canada.
Projections from Boston Consulting Group suggest the tokenized asset market could skyrocket to $18.9 trillion by 2033.
Shares of Intellistake are trading at 48 cents on the Canadian Securities Exchange.
