Manila, Philippines) – Asia Digital Asset Exchange (ADAX) was awarded an Offshore Virtual Currency Exchange (OVCE) License from the Philippines’ Cagayan Economic Zone Authority (CEZA). Receiving the license from Sec. Raul L. Lambino (right) Administrator and CEO of CEZA, is Aaron Carter (left), Chief Technology Officer of Asia Digital Asset Exchange (ADAX). This is a major step forward for ADAX Tech as they prepare to launch their fully regulated asset backed token issuance and exchange platforms later this year.
ADAX’s new license offers a regulatory framework and oversight through the special economic zone in the Philippines. The CEZA Digital Asset and Token Offering (DATO) Rules allows OVCE license holders – like ADAX – to offer asset backed, utility and virtual currency tokens. ADAX’s vision establishes a clear focus on specifically trading asset backed tokens. This newer class of tokens will bring opportunities for investors to trade on a fully regulated and compliant platform.
CEZA’s Administrator and CEO, Secretary Raul Lambino said, “As CEZA moves towards playing a major role in the evolution of the financial world regarding crypto trading and issuance of securitized digital assets, we are pleased to announce and welcome the ADAX Tech Limited team as an OVCE license holder within the Cagayan Economic Zone Authority. ADAX Tech operates as a digital asset token issuance platform and digital asset trading exchange and will contribute a wealth of experience and knowledge to our highly professional crypto trading community. We wish them luck, and welcome again to CEZA!”
Only a handful of regulated digital asset backed token issuance and exchange platforms in the world have a government-backed license in hand. Other major players such as the Gibraltar Exchange in Europe – who raised over $25 million in equity funding – and tZERO Exchange in North America – who raised over $100 million – have seen substantial interest in the security token marketplace.
According to ADAX representatives, ADAX will also open an asset backed token offering platform for business clients and investors and ADAX 360 will service projects looking to conduct a fully regulated asset backed token offering. According to them, talks with several projects seeking to tokenize real-world assets such real estate, corporations and other institutional assets are underway. Subject to the approval of CEZA and its self-regulatory organization Asia Blockchain and Crypto Association (ABACA), ADAX 360 is expected to begin issuing asset backed tokens, and ADAX is expected to begin trading asset backed and utility tokens, later this year.
“We are extremely excited to receive this important license from CEZA. ADAX firmly believes asset backed tokens are one of the most exciting developments for global financial growth in recent history;” said ADAX President Wojtek Kaszycki, “the digital tokenization of corporate assets eliminates major barriers faced by projects and investors in the current global marketplace infrastructure. Through ADAX and blockchain technology, we will be able to bring the necessary liquidity and fair pricing for these assets through a cross-border investment vehicle that is fully compliant and regulated.”
Asset backed token offerings are expected to take the spotlight form the 2018 ICO (Initial Coin Offering) marketplace that saw investment of over $6.3 billion.
In contrast with ICOs, asset backed tokens (commonly known as a Security Token Offering or STO) have seen just over $650 million raised since the beginning of 2019.
ADAX plans to become a major tokenized securities exchange and issuance platform focused on Asia.