Liquefy announced today that NEO Global Development (NGD) will invest in and partner with Liquefy, to develop an NEO based security token ecosystem and allow asset owners to issue security tokens based on NEO.

NEO is a leading protocol that utilizes blockchain technology and digital identities to tokenize assets and automate the management of tokenize assets using smart contracts. The recent update to NEO 3.0 allows it to scale and build a fully-integrated tokenized economy.

“It is important to develop a security token standard while the industry is still in its infancy. What separates NEO apart from other public blockchain protocols is the integration of NeoID, which allows KYC, AML and accreditation status to be stored on-chain while maintaining privacy. This allows issuers to monitor and maintain records of all transactions in the secondary market to remain compliant in multiple jurisdictions,” Adrian Lai, CEO of Liquefy. “We are excited to welcome NGD as an investor and a partner to develop a security token ecosystem together and bring innovation to the financial market.”

The Liquefy Platform will support NEO which will allow NEO stakeholders to gain access to the security token universe. The current process of transferring private securities is fragmented, cumbersome and expensive since KYC information of investors are siloed across multiple intermediaries and compliance is a manual process. Liquefy is solving a critical pain point in the market by providing an end to end solution from issuance, managing compliance across multiple jurisdictions to investor management services.

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The investment and partnership with Liquefy have cemented NEO’s commitment to develop the security token industry. Earlier this year, NEO had formed the Digital Asset Alliance (DAA) to explore, develop and share insights about the security tokens sector with a consortium of industry leaders such as Republic, Globacap, DLx and Liquefy.