The Harbor Project Partners With 0x Protocol To Provide Trading Exchanges Of Tokenized Assets
The two companies are working together to optimize the overall interoperability between the standards-based 0x platform and the Harbor compliance protocol — critical layers in the tokenized security stack — to help facilitate compliant trading through the 0x relayer ecosystem.
The growing network of 0x creates a huge opportunity for Harbor to connect buyers and sellers. Through tackling the regulatory compliance challenges of tokenizing private securities, Harbor makes it easy for issuers and investors to abide by existing rules and regulations across jurisdictions as the CEO of Harbor, Josh Stein explained.
The partnership will see the Harbor protocol provide its compliance blockchain to ensure that all laws and regulatory requirements by the authorities are met while issuance and secondary trading of the tokenized securities is functional across exchanges simultaneously. This will ensure that a centralized compliance system allows users trading tokenized assets in a decentralized peer to peer system will follow the laws and regulations.
On the other hand, x protocol will provide an exchange platform for these tokenized securities by providing an open source protocol to build the decentralized applications on while lowering the cost of trading and enhancing security as it is not a centralized third party that holds the funds.
Lower costs on the protocol ensures that there exists no expensive barriers to entry for the ‘relayers’ to build their dApps while providing scalability for the exponentially growing number of relayers. The lower cost of trading allows for all generalized token standards to be adopted as seen by a large volume of liquidity that has been amassed.
0x system relayers are in support of the proposed trading of illiquid tokenized securities while some such as The Ocean and Paradex already having obtained the appropriate regulatory licenses while others are in the process of obtaining licensure. Soon, there will be a vibrant ecosystem of regulated exchanges providing compliant trading of security tokens, optimizing different services for different parts of the market and yet potentially sharing one worldwide order book, all enabled by the 0x protocol.
“We are excited by 0x’s vision of liquidity 24/7/365, around the globe across multiple exchanges, with near instantaneous settlement and no counterparty risk. The blockchain — and only the blockchain — can deliver that vision. Harbor is an integral compliance layer that enables this transformation of liquidity. Issuers can now allow their tokenized securities to trade to the limit of their liquidity across multiple exchanges, condent that Harbor is enforcing their compliance requirements on every trade.” — Josh Stein, Harbor CEO
The tokenization of illiquid assets has been an issue in raising capital as many traditional investments like real estates and infrastructure are impossible to tokenize. However with the rise in blockchain technology, private securities can be transformed by making capital formation faster, easier, and less expensive while unlocking secondary liquidity (and value) for investors. These illiquid traditional assets will be unlocked to provide easy liquidity and higher capital channels to investors to form trillion of dollars’ worth of capital buffers from them.
The Harbor platform and compliance protocol ensure tokenized securities comply with existing securities laws at issuance and on every trade, everywhere across the globe. Tokenization changes the economics of capital formation and the dynamics of secondary trading. It creates exciting new opportunities for issuers and broker-dealers to unbundle and bundle assets in new ways and reach investors globally.
“It is fascinating to see the 0x protocol and the Harbor R-token standard combined to establish more liquid and efficient markets for alternative assets. We believe this emerging security token technology stack has the potential to unlock an incredible amount of value.” — CEO Will Warren
Former Paypal COO Joins 0x Protocol
Formerly at PayPal, David Sacks has joined the 0x board on an advisory role. The former chief executive officer (COO) backs the recent alliance announced by the founders of 0x, the open relayer protocol that underpins trading of cryptocurrencies. Having experience in the field of payments and decentralized systems will enable Mr. Sacks and the team at 0x create an industry standard for security tokens, making it easier for investors and software developers to adopt them.
David Sacks has served a couple of big companies across the globe as CEO of Yammer (acquired by Microsoft), co-founder of Harbor and co-founder and General Partner at Craft Ventures, which has invested into the world of blockchain including Rare Bits and Set protocol, in addition to incubating Harbor.
“0x is an important and critical component in what will ultimately be a global market for tokenized assets and many forms of value. Together, 0x and Harbor provide critical, complementary layers in the security token stack to facilitate this tremendous market opportunity.” – David Sacks, advisor at 0x protocol