Tezos (XTZ) Rallies Ahead of Security Token Launch
Tezos’ XTZ cryptocurrency rebounded sharply on Wednesday amid reports that the blockchain platform is planning to open the door to security token offerings. The new listings will be supported by TokenSoft, a security token platform that provides institutional grade compliance tools for digital assets.
XTZ Price Update
The value of XTZ was in recovery mode on Wednesday, rising 6.6% to $1.25, according to CoinMarketCap. The leading cryptocurrency is coming off a string of losses that began on Friday. XTZ bottomed at $1.17 on Tuesday, a six-day low.
At current values, the Tezos blockchain has a total market capitalization of $822.9 million. It ranks 21st by market cap, ahead of high-profile projects like NEM (XEM), Maker (MKR), Ontology (ONT) and Zcash (ZEC).
Tezos’ reported trade volumes were valued at nearly $6 million on Wednesday. More than 40% of the daily turnover was processed on BitMax. Kraken, another leading digital currency exchange, processed more than 30% of transactions.
Aside from bitcoin, Tezos was the only high-profile cryptocurrency to report gains Wednesday. As a result, the share of the cryptocurrency market held in altcoins and tokens has fallen to less than 35%, the lowest in 27 months.
Tezos Partners with TokenSoft
Tezos could soon become the leading platform for security tokens after the company secured a partnership with TokenSoft, a blockchain compliance company specializing in asset-backed tokens. As Cryptovest reported Tuesday, the partnership will allow Tezos add more “fully legalized security tokens.”
Mason Borda, CEO of TokenSoft, said the partnership was more than a year in the making. “With the introduction of the Tezos multi-signature and FA1.2 smart contracts, we now have the key ingredients to provide our institutional grade services on the Tezos blockchain,” he said.
Learn more about security token offerings: What is an STO & 10 Reasons Why It Will Have a Massive Impact.
Prior to its recent slump, Tezos was among the top-performing cryptocurrencies of 2019. Tokenization hype and a highly lucrative staking process known as baking have helped Tezos leapfrog the competition.
Back in March, the San Francisco-based Coinbase announced that institutional investors will have the opportunity to participate in the Tezos staking process, allowing them to earn interest on their XTZ holdings.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock. Chart via CoinMarketCap.