From Dusk Till Dawn: Europe's Security Token Market
By Jelle Pol

Dec 16, 2020

How the addition of the NPEX Stock Exchange heralds the beginning of a new financial ecosystem.

Dusk Network has been the topic of conversation since our recent news hit. It is official: Dusk Network has become a shareholder of the Dutch stock exchange NPEX. The attentive reader has seen that the share acquisition follows our close collaboration in which we work towards a common goal; to innovate the financial sector. The deal represents a significant milestone for us on our quest to launch an ecosystem powered by Dusk Network’s blockchain for the financial markets of today and tomorrow. So, how does the acquisition fit into our plans to create an ecosystem, and who are the key players?

For those unaware, one of our business strategies revolves around what is called dogfooding. This means that we are both developing Dusk Network as well as using it ourselves. We can write volumes about the benefits this provides to our technical department but, for the business side, this means that we are a user just as much as anyone else. And because of that, we can efficiently drive our own adoption.

When we speak about the creation of a Dusk Network-centered ecosystem, we mean to connect organizations from across the entire industry vertical. You can see this as including all players from start to finish: from the incorporation of companies (notary platforms, incubators & accelerators), to when they seek access to their first funding needs (private & primary markets), all the way to the maturity of capital markets (secondary markets, and more).

Dawn Ecosystem milestones

We started to paint this picture earlier in the year when we announced our plans to tokenize tens of thousands of SMEs together with LTO Network, and the Firm24 notary & shareholder registry platform. Since then, we solidified our long-term partnership with one of the largest cryptocurrency powerhouses: iFinex inc. (mother company of Bitfinex and Tether) to further shape the Security Token Ecosystem of the future and power our own Security Token Exchange.

These plans have now evolved to the next stage, thanks to the recent developments with the NPEX Stock Exchange.

The image below shows the role of different stakeholders in innovating the securities market

Concluding Remarks

The financial markets are governed by decade-old rules and regulations that have been shaped bit by bit to provide fair and healthy markets for all of its participants. You may think this stifles innovation, but regulators actually encourage innovation to spur market growth and competition. More often than not, technology companies are at the forefront of innovation, creating new tools and infrastructure to collaborate at scale. And while change takes time and does not happen overnight, good concepts will stick and revolutionize the future of finance. By joining forces with iFinex, NPEX, and companies like Firm24, we are paving the road to adoption for Dusk Network.

In my upcoming series, I’ll touch upon the market signals that are evident, the dilemmas and challenges the traditional finance world is facing, and how our blockchain solution is well equipped to provide the infrastructure solution needed to lead Europe’s securities token market transformation.

Jelle Pol,
Business Director Dusk Network

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