Lack of secondary market liquidity and regulatory certainty are key barriers to security tokens

Author: Karry Lai | Published: 2 Jul 2019

Security tokens are gaining momentum as they gradually draw more interest from institutional investors owing to a number of benefits, ranging from a reduction of intermediaries to more efficient settlement times. However, hurdles to mainstreaming security tokens remain owing to a lack of liquidity and certainty in regulation, according to panellists at the Security Tokens Realised event in Hong Kong.

Compared to traditional securities, which have years of history and established rules in place, there remains a lack of rules concerning security tokens. The panellists agreed...