Web3 for Capital Markets: Ohanae Redefining OTC Securities with a Desire to Win
Published on June 01, 2023
Author : Greg Hauw, Founder & CEO, Ohanae, Inc

Confidence. That's Ohanae.® This is not just a trademark; it encapsulates the spirit of Ohanae, Inc., ("Ohanae") as it embarks on a mission to revolutionize the over-the-counter (OTC) securities landscape. With its Ohanae Platform, Ohanae aims to redefine how OTC securities are traded and settled, leveraging the power of Web3 technology and tokenization. This forward-looking approach, combined with a desire to win in this competitive landscape, sets the stage for Ohanae's potential collaboration and its competitive advantage.

OTC securities have traditionally been associated with higher risks compared to stocks listed on major exchanges. However, the existing incumbents have provided centralized platforms for OTC trading, serving as venues for broker-dealers to quote and trade OTC securities. While they have established their reputations, the OTC markets are now ripe for disruption.

Enter Ohanae, with its vision to reshape the OTC securities landscape. By harnessing Web3 technology and embracing tokenization, Ohanae aims to introduce transformative change to the industry. The Ohanae Platform's features and components, such as blockchain integration, deposit coins, equity tokens, secure custody solutions, atomic settlement, and automated market maker (AMM), promise to unlock new functionalities and enhance efficiency in equity crowdfunding, trading and settlement processes.

To secure a competitive advantage in this evolving market, Ohanae is planning to include the strategic pillars of "Mobile First" and "AI Powered Trading" in our product development roadmap. The "Mobile First" approach recognizes the increasing importance of mobile devices in accessing financial services. Ohanae acknowledges the need to prioritize a seamless and user-friendly mobile experience to attract and retain a broader user base. By making trading and investing accessible on-the-go, Ohanae can tap into the preferences of mobile-savvy investors.

Furthermore, Ohanae is looking to leverage the power of artificial intelligence (AI) in its trading processes. Through AI-powered trading, Ohanae seeks to harness data analysis and pattern recognition to make smarter, data-driven trading decisions. This approach can enhance trading strategies, improve risk management, and provide personalized investment recommendations to users. By incorporating AI into its platform, Ohanae demonstrates its commitment to staying at the forefront of technological advancements in the financial industry.

While Ohanae presents an innovative vision for the OTC securities market, it faces the challenge of displacing established incumbents. However, Ohanae's potential collaboration with these incumbents holds the key to transformative change. Partnerships with industry leaders could unlock opportunities for innovation, drive market adoption, and reshape the industry as a whole.

If Ohanae successfully executes its vision and gains significant market adoption, the incumbents could face several potential outcomes. Collaboration or acquisition with Ohanae or other emerging players could enable the incumbents to integrate new technologies and strategies, maintaining relevance in a changing market. In the worst-case scenario, the incumbents might consider exiting the market altogether.

To leapfrog the incumbents and establish itself as a leader, Ohanae must navigate several key factors. Technology and innovation remain paramount, requiring Ohanae to maintain a robust blockchain infrastructure, enhance tokenization capabilities, and stay ahead of emerging industry trends. Regulatory compliance is crucial, and Ohanae must work closely with regulatory authorities to meet legal requirements. Market adoption and liquidity hinge on effective marketing, and partnerships. Collaboration with established players can enhance credibility, network access, and expertise. Education and trust-building efforts are necessary to promote the benefits of Ohanae's platform and foster widespread adoption. User experience, scalability, and ecosystem development complete the recipe for success, ensuring a seamless, resilient, and value-added platform.

While Ohanae's positioning and product-market fit appear promising, its success depends on various factors, including market dynamics, regulation, competition, and effective execution. Ohanae's forward-looking approach, combined with a desire to win and collaborate, positions it as a potential disruptor in the OTC securities landscape. Confidence truly is the driving force behind Ohanae's pursuit of redefining the industry and bringing about transformative change. The future holds immense potential for Ohanae, and only time will reveal its true impact on the OTC securities market.

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.