LCX has entered into a strategic partnership with Hedera Hashgraph. LCX said that it will open its Liechtenstein Protocol for the Hedera Hashgraph network to develop a new digital securities infrastructure.
LCX established one of the world’s first regulated and compliant blockchain ecosystems for professional investors and recently received approval of eight blockchain registrations by the Liechtenstein regulator – more than any other company in the country.
With this new partnership, Hedera envisions leveraging the technology infrastructure of LCX to expand the Hedera Token Service (HTS) with the addition of a new security token standard and provide secure, reliable, transparent, and compliant infrastructure for digital securities to its users.
From this strategic partnership, both the companies believe that their community will benefit in the following ways:
- The Liechtenstein Protocol : Implement a new standard for digital securities enabling on-chain and on-token-level compliance on the Hedera network.
- Security Token Standard : Develop a framework for the tokenization of securities, the infrastructure for security tokens and corporate tokens (permission-based tokens).
- HBAR Listing on LCX Exchange : Listing of Hedera’s native cryptocurrency, HBAR, on LCX Exchange.
Commenting on the partnership, Leemon Baird, CTO and Co-Founder of Hedera Hashgraph, said:
“It has been wonderful to see the wide array of innovative applications in the Hedera ecosystem. LCX is leading the way in creating blockchain-agnostic standards for the exciting area of digital securities, and by leveraging Hedera’s unique properties of speed, security, and fairness with a low carbon footprint, which will accelerate the adoption of this emerging market.”
The Hedera Token Service (HTS) offers LCX and its clients the ability to issue and configure tokens on the Hedera platform, taking full advantage of the Hedera network’s native performance, security, stability, and governance. HTS combined with LCX’s compliant token sale manager offers a faster and more efficient alternative to smart contract token creation.
Monty C. M. Metzger, CEO and Founder of LCX believes that “there is an immediate need for practicable standards for digital securities to help businesses around the world simplify and enhance how they issue security tokens, raise funds or establish new blockchain powered financial instruments.”
Monty C. M. Metzger, CEO and Founder of LCX, said:
“LCX’s partnership with Hedera Hashgraph is an important milestone in our efforts to digitize traditional processes and help spur innovation in this critical industry segment for the decades to come.”
The Liechtenstein protocol, introduced at the top of the Hedera distributed network, will enable organizations to use LCX’s Liechtenstein Protocol framework to easily create security tokens with the ability to automatically enforce certain conditions related to legal and regulatory requirements applicable to securities, and enable the automatic compliance of the tokenized resource with predefined requirements embedded in the code.