Redefining OTC Securities with Confidence in the Evolving Crypto Landscape
Published on June 19, 2023
Author : Greg Hauw, Founder & CEO, Ohanae, Inc

Introduction:

The crypto industry is experiencing turbulence as regulatory challenges loom large. Recent accusations from the SEC against Coinbase and Binance for their failure to register as brokers have raised concerns within decentralized finance and the crypto markets. Over-the-Counter (OTC) securities, which refer to unrestricted securities traded directly between two parties outside of formalized exchanges, play a significant role in this landscape.

The Importance of OTC Securities:

OTC securities are traded through decentralized networks or electronic platforms, distinguishing them from stocks and bonds traded on major exchanges like the New York Stock Exchange (NYSE) or NASDAQ. Their unrestricted nature and direct trading between parties provide flexibility and unique opportunities in the market.

Ohanae's Innovative Approach:

Amidst tightening regulations, Ohanae is a Web3 platform working to revolutionize OTC securities with its focus on security, transparency, and compliance. It brings efficiency to the market through various innovative features, such as tokenization, equity crowdfunding, non-stop trading, and atomic settlement. Ohanae aims to empower investors with trusted and inclusive primary and secondary trading, providing a solution that addresses the challenges faced by the crypto industry.

Key Components of Ohanae's Platform:

Ohanae Blockchain: With the goals of being secure and compliant, Ohanae's permissioned blockchain is designed to provide a trusted environment for seamless transactions. Transparency and the reduction of fraudulent activities is a high priority.

Ohanae Coin ("OUSD"): With Ohanae's 1-to-1 tokenized commercial bank currency, designed to be pegged to the US dollar, our aim is for investors to experience hassle-free trading, with the goal of benefiting from the stability and familiarity of a traditional currency.

Equity Tokens: Ohanae is working to transform traditional securities into digital representations using its cutting-edge equity tokens. This innovative approach may open up new avenues for investors to participate in the OTC securities market.

Secure Custody Solutions: Ohanae prioritizes the security of investors' assets with top-notch secure custody solutions. These solutions protect private keys from unauthorized access, with the goal of ensuring the safety of digital assets.

Atomic Settlement: Ohanae's revolutionary instant settlement mechanism is designed to eliminate settlement risks by enabling simultaneous settlement of multiple assets. The goal is to ensure efficient and reliable transactions.

Automated Market Maker (AMM): Ohanae's state-of-the-art AMM technology is designed to provide liquidity and direct trading on the platform. The goal is to enhance market efficiency and accessibility for investors.

Digital Transfer Agent: Ohanae works to simplify ownership transfers and promotes transparency in every transaction through its digital transfer agent. This innovative feature is designed to ensure compliance while streamlining processes.

Reg A+ Exemption: Ohanae embraces the Reg A+ exemption provided by the JOBS Act, democratizing access to investment opportunities and making them available to the general public. The goal is to foster inclusivity and broadens participation in the OTC securities market.

Investor Acquisition Marketing ("IAM"): Ohanae offers an innovative Investor Acquisition Marketing program that is designed to empower capital seekers to generate leads, expand their networks, and build a vibrant community around their offerings. This program enhances visibility and engagement.

Revenue Drivers: Ohanae has identified various revenue streams, including success fees, listing fees, digital transfer agent fees, and other value-added services. These revenue drivers can help to ensure a sustainable and thriving platform, supporting its long-term viability.

Collaboration for Mutual Growth:

Ohanae firmly believes that collaboration and partnership with established incumbents in the OTC securities space are pivotal for mutual growth and transformation. By joining forces, industry players can navigate challenges, seize opportunities, and reshape the market landscape together.

Conclusion:

As the crypto industry evolves and navigates regulatory challenges, Ohanae's vision of redefining OTC securities with confidence becomes increasingly relevant. Through its Web3 approach, Ohanae addresses key pain points in the industry, providing security, transparency, and compliance. By embracing tokenization, equity crowdfunding, non-stop trading, and atomic settlement, Ohanae aims to empower investors, instilling trust, and reshaping the future of OTC securities in the evolving crypto landscape.

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.