Security tokens have been advocated by the industry to tokenize different assets, thereby increasing asset liquidity. Dutch securities token platform Dusk Network announced yesterday that it will partner with Firm24, a large shareholder registration company in the region, and plan to tokenize the shares of more than 1,000 SMEs through the blockchain.
Firm24 specializes in providing shareholder registration services for individual shareholders and companies, while its SME customers come from 35,000 companies in Belgium, the Netherlands, and Luxembourg. As shareholders’ registration records need to be updated frequently, this will increase manpower costs, and when there are changes in equity records in the European Union, they need to be verified by a notary public. Related projects are expected to be launched in the second quarter of this year, and by the end of the year, they hope to expand the scale to 10,000 companies to serve companies in the Benelux region.
Therefore, Firm24 hopes to solve this problem through cooperation with Dusk Network. Dusk Network director Jelle Pol revealed to CoinDesk that there would be great benefits in transferring shareholder registration and related operations to the blockchain. For example, after the company’s stock is tokenized, it can create a new secondary trading market for investors, and can gather all information in the same place so that the company knows the shareholder information.
Since many SMEs’ shares are not publicly listed, most of the transactions are in private secondary markets, and even issuers may not know the transaction records. Moreover, the related transaction records may also be in different notary banks and difficult to confirm in a single platform. Therefore, Martijn Migchelsen, CEO of Firm24, said that this cooperation can tokenize the registration of shares and help them directly connect with customers around the world.