A new security token trading platform is knocking at the door and aims to help small U.S. companies go public with a minimal compliance burden. The ABE Global exchange plans to launch sometime this summer and by the end of the year is planning to list over 100 tokens.
ABE is a global exchange for tokenized assets. Blending new distributed ledger technology and traditional financial exchange technology, ABE combines the security and reliability of traditional exchanges with the cost savings of distributed ledgers. The ABE exchange uses a unique adaptive auction technology to deliver direct access to global capital markets for 90% less cost and dramatically increased transparency. To provide a secure and safe trading platform, ABE has partnered with global custodians to create a path for regular brokerages and investment management platforms in order to safely and easily hold tokenized investment instruments.
The Distinctive Approach
ABE security token exchange is approaching the market in a very unique way by using Depositary Receipts. A depositary receipt is a negotiable certificate issued by a bank representing shares in a foreign company traded on a local stock exchange. The depositary receipt gives investors the opportunity to hold shares in the equity of foreign countries and gives them an alternative to trading on an international market.
In case of ABE Global, any asset listed on the Maltese branch of the ABE Global platform will become accessible through DRs, on the Asian and American branches.
Giving More Power to Small Firms
ABE will enable U.S. firms to raise capital on public markets at a much lower cost. While the average IPO according to PwC, in 2017 costs around $4.2 million in various fees, at ABE it will be between $200,000 and $500,000, depending on the size of the STO, the startup commented. The cost will come down by almost 90%.
Calling American small-cap companies one of the best wealth creation vehicles the world have ever seen,” John Pigott, CEO believes that the new asset class of tokenized securities can re-open the broad world of investments to this segment of the U.S. population, with an ultimate goal to connect the token economy with the global investment economy.
To know more about ABE Global, Visit: https://www.abe.io/