STO Quietly Developing! Cryptocurrency wallet provider Exodus to issue security token EXIT on Algorand

The cryptocurrency wallet provider Exodus will issue tokenized securities EXIT on the public chain platform Algorand. Participants will be able to directly claim the tokens using the Exodus wallet and then transfer them to trade on tZERO in the future.

Exodus to Issue Tokenized Securities on Algorand

In April this year, cryptocurrency wallet provider Exodus sold the company's stocks in the form of Security Token Offering (STO), where participants could only participate through its wallet, and the company accepted only three payment methods: Bitcoin, Ethereum, and USDC stablecoin. It was reported that the company raised $75 million in funding. Exodus claims that the stock sale has been approved by the U.S. Securities and Exchange Commission (SEC) and is the largest and compliant STO token issuance in history.

However, at that time, Exodus did not disclose the details of the STO token, only revealing that the token would be issued on a public blockchain within the next nine months.

It wasn't until yesterday that Exodus announced in their press release, news, that they will convert the sold stocks into tokens on the Algorand blockchain (EXIT), and participants can claim these tokens directly using the Exodus wallet in the future. The blockchain transfer agent Securitize will collaborate with Exodus and Algorand to issue these security tokens. Furthermore, the EXIT tokens will also be tradable on tZERO in the future. Sebastián Milla Goñi, the COO of Exodus, stated in a press release:

"This exciting partnership allows us to prepare for secondary market trading in the near future. In other words, the company hopes EXIT holders will be able to sell their shares in the company using blockchain infrastructure."

STO Quietly Developing

The concept of STO was once the focus of many industry professionals, but after DeFi took most of the market's attention in recent years, discussion about STO has decreased. However, the STO concept seems to be quietly developing recently. According to previous reports, DBS Bank in Singapore has issued the first batch of digital bonds worth 15 million Singapore dollars (11.3 million USD) through its digital exchange DDEx.

DBS Bank stated that the issuance of digital bonds sets the foundation for DDEx's future adoption, allowing other issuers and clients to effectively access the capital market through this infrastructure, meeting their financing needs and paving the way for further STO issuances and listings. Additionally, DBS Group emphasized that as clients begin to accept STO issuance as part of their financing activities, the tokenization of assets or securities is expected to become more mainstream.