The Philippines Cagayan Economic Zone Authority (CEZA) announced plans to expand their operation into the Hong Kong market in the first quarter of 2020 via the launch of the county’s first licensed security token exchange – CEZEX. Asian investors welcomed the news with praise. Many investors in the region seek a more secure crypto investment experience.
The Asian market continues to be a strong force in the cryptocommunity and this latest development will only strengthen Asia’s influence in the market. Locating the exchange in Hong Kong allows CEZEX to service Chinese investors who left the mainland. China officially banned ICOs in 2017. Chinese investors continue to search for additional options.
Hong Kong Enters the Security Token Market
According to a recent press release, the platform will host both security and utility tokens. Security tokens are well-suited for use in digitizing traditional assets, including stocks, bonds, commodities, and real estate. Developers stated that the platform will host a number of asset-backed tokens.
The digitization of the economy allows investors to enjoy a more secure investment experience. Blockchain technology reduces the transaction time for investors from days to mere hours. Additionally, the technology provides a more transparent investment option.
Positioning
CEZEX developers seek to position their platform as the premier exchange in the Asian market. This maneuver is entirely possible when you consider that they are among the first security token platforms in Asia. The Asian market has long steered the cryptomarket with South Korea and Japan both being major crypto hubs in the region.
First Licensed Security Token Exchange
The CEZEX exchange is the first security token exchange licensed by CEZA. This is a big deal when you consider that CEZA is a government-owned and controlled corporation that was created specifically to increase financial development in the Cagayan Special Economic Zone and Freeport (CSEZFP).
The CSEZFP (Cagayan Freeport) is a special economic zone. The zone shares its name with the province in which it resides. The goal of the zone is to stimulate economic growth in the surrounding communities. Currently, the zone hosts a mix of financial, commercial, industrial, recreational, and tourist-based enterprises.
Future Blockchain Development
According to a recent article published by the South China Mourning Post, the exchange will be the first of many new blockchain-based businesses operating within the CSEZFP. Government officials hope to spur thousands of new jobs in the financial sector through the cultivation of the new business community.
Speaking to the public, one of CEZEX’s managing partners, Carlos Salas discussed the importance of taking the “existing financial system and digitizing it.” He explained that the new platform functions similar to traditional financial exchanges. The main difference being that instead of trading securities, the exchange will handle “asset-backed security tokens.”
The platform will host tokenized gold and real estate starting in Q1 2020. After the successful launch of these products, developers will move into stocks, bonds, and derivates. Eventually, a full suite of traditional investments will undergo tokenization and be integrated onto the exchange.
Hong Kong Enters the Security Token Sector
You can expect to see more exchanges follow in CEZEX’s footsteps in the coming months. The Asian crypto space is ready for more security token platforms. CEZEX is leading the way towards making this desire a reality.
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