Ohanae: Pioneering the Future of Non-Reg NMS Markets with Web3, AI, and Digital Asset Securities
Published on October 10, 2024
Author : Greg Hauw, Founder & CEO, Ohanae, Inc

As the financial landscape continues to evolve, Ohanae stands at the forefront of innovation, leading the charge in the non-Reg NMS market through its Web3-powered platform. While traditional Reg NMS market leaders like NYSE and Nasdaq dominate established securities trading, Ohanae is carving out a new niche, providing a compliant digital platform that offers 24x7 liquidity for tokenized securities using Automated Market Maker (AMM) technology. By leveraging blockchain and AI, Ohanae is creating an ecosystem where issuers and investors can interact seamlessly, efficiently, and securely.

Ohanae, the short version of the Ohanae OTC Market Platform, is operated by Ohanae Securities LLC, a wholly owned subsidiary of Ohanae, Inc., a Delaware corporation headquartered in New York. Ohanae Securities LLC serves as the broker-dealer entity responsible for facilitating securities trading on the platform, while Ohanae, Inc. oversees the broader technology and operational framework that powers the platform. Ohanae, Inc. is also an SEC-registered digital transfer agent, providing critical record-keeping services for digital securities.

 

Tokenization of Securities

One of Ohanae’s core innovations is the tokenization of securities, which enables the conversion of traditional securities into equity tokens. These tokens are fully compliant with Delaware General Corporate Law and are managed on a blockchain ledger that enhances transparency and efficiency in trading and ownership transfer. Ohanae's platform allows for seamless trading without the need for intermediaries, streamlining corporate governance, shareholder management, and transactional workflows.

 

Asset Custody and Key Recovery

Ohanae ensures the secure custody of tokenized assets through its permissioned blockchain, purpose-built to safeguard users' private keys. A key aspect of this security is that private keys are encrypted by users before they are custodized on the platform. Only the users retain the ability to decrypt these keys, which they must unlock to conduct transactions on the platform, ensuring that their assets remain fully under their control.

Additionally, Ohanae offers integrated transfer agent functionality, supported by Ohanae, Inc. as an SEC-registered digital transfer agent, providing reliable tracking and record-keeping of asset ownership. The platform also includes a key recovery feature that helps users regain access in the event they lose their user-defined password used to unlock the encrypted private key. This secure process ensures data integrity and regulatory compliance while protecting users' control over their assets.

 

The Role of Ohanae Coin

At the heart of Ohanae’s platform is Ohanae Coin, a deposit coin pegged 1:1 to the U.S. dollar and backed by funds held in a Special Reserve Account. As a stable and reliable medium of exchange, Ohanae Coin is integral to the platform's operation, facilitating securities trading and other financial transactions in a digital format. The deposit coin model bridges the gap between traditional finance and the digital asset space, providing a secure and efficient means for users to engage with the platform.

 

Ohanae AMA (Ask Me Anything)

To further enhance user engagement, Ohanae is introducing Ohanae AMA, an AI-powered feature designed to answer users' queries about issuers' offerings. Instead of sifting through dense, 100+ page Offering Circulars, users can leverage advanced search algorithms and large language models (LLMs) to get accurate information sourced from SEC-qualified documents and issuer websites. The AMA feature ensures compliance by avoiding investment advice, providing users with essential insights while keeping them informed about the platform's offerings.

 

Strategic Positioning and Growth

With Ohanae’s unique positioning in the non-Reg NMS market, the company is set to disrupt traditional capital markets by introducing dual capital-raising channels for both institutional and retail investors. Through Reg A+ offerings, Ohanae facilitates the direct engagement of investors, democratizing access to investment opportunities.

Ohanae's growth strategy includes forming strategic partnerships with established Reg NMS market participants and major investment firms to fuel the platform’s scalability. Once FINRA approval for Ohanae’s Special Purpose Broker-Dealer (SPBD) application is secured, the company will be well-positioned to advance these strategic conversations. The approval will enable Ohanae to operate within a fully compliant regulatory framework, solidifying its role as a pioneer in tokenized securities and digital asset securities trading.

 

Automated Market Maker (AMM) for Round-the-Clock Trading

Ohanae's platform is powered by AMM technology, which allows for round-the-clock trading of tokenized securities. Unlike traditional order books, which rely on buyers and sellers matching orders, the AMM continuously facilitates trades by using a Constant Product Formula to manage liquidity. This ensures that markets remain liquid 24x7, enabling investors to trade at any time, regardless of external market conditions.

 

Forward-Looking Capital-Raising Strategy

Ohanae's Strategic Investment Strategy targets raising $30 million in capital to fuel platform growth. This effort focuses on securing investments from established financial institutions, high-net-worth individuals, and retail investors.

This forward-looking plan also includes establishing partnerships with key investment banking firms, aiming to raise additional capital from boutique investment banks specializing in fintech and blockchain technologies. Ohanae’s strategic growth, driven by these collaborations, positions it as a pivotal player in the future of digital asset securities.

 

A New Era of Non-Reg NMS Markets

In contrast to Reg NMS market participants like NYSE and Nasdaq, Ohanae is pioneering the non-Reg NMS market, creating a compliant digital infrastructure that supports tokenized securities and blockchain-powered financial transactions. By leveraging Web3 technology, AI-powered tools, and blockchain, Ohanae is breaking new ground in capital markets, offering a comprehensive platform that bridges the gap between traditional finance and the digital asset ecosystem.

Ohanae is shaping the future by delivering a platform that offers transparency, liquidity, and inclusivity while ensuring the highest levels of security and compliance. As the platform continues to grow and attract institutional investors, Ohanae is positioned to redefine how digital asset securities are traded, governed, and managed in the modern financial landscape.

With FINRA SPBD approval anticipated, Ohanae is poised to take the next step in its journey toward becoming a dominant force in the digital capital markets. By combining cutting-edge technologies, robust security measures, and a visionary approach, Ohanae is ready to lead the charge in the non-Reg NMS market, shaping the future of financial markets with innovation at its core.

 

Disclaimer

Ohanae Securities LLC is a subsidiary of Ohanae, Inc. and a member of the Financial Industry Regulatory Authority and Securities Investor Protection Corporation (FINRA/SIPC). Additional information about Ohanae Securities LLC is available on BrokerCheck.

Ohanae Securities LLC is currently in discussions with FINRA regarding the potential expansion of its business lines, which may include custody and related services for crypto asset securities. Any statements regarding the capabilities or services of Ohanae Securities LLC are subject to regulatory approval, and there can be no assurance that such approvals will be obtained.

Ohanae Securities LLC intends to operate in a manner that addresses the unique characteristics of crypto asset securities, including maintaining robust policies and procedures for custody, safeguarding of private keys, and evaluation of distributed ledger technology. The firm’s approach is designed to support crypto asset securities that may not efficiently operate within the traditional National Market System (NMS). Subject to applicable regulatory approvals, Ohanae Securities LLC may expand its activities to include additional services that may be conducted in a dealer-principal capacity, with the objective of protecting investors and maintaining market integrity.