LCX and Hedera Hashgraph announced a partnership to enable businesses to issue and configure tokens on the Hedera network. The goal is to create a secure, reliable, transparent, and compliant infrastructure for digital securities.

LCX, Liechtenstein Digital Assets Exchange, announced a strategic partnership with Hedera Hashgraph, an enterprise-grade public network for the decentralized economy. LCX is expanding its Liechtenstein Protocol for the Hedera Hashgraph network to establish a new standard for security tokens and tokenized digital assets. 

What is Hedera Hashgraph?

Hedera is a public network governed by a council of leading organizations, including Boeing, Chainlink Labs, Deutsche Telekom, DLA Piper, Google, IBM, LG Electronics, University College London (UCL), and more. Hedera offers the Hedera Token Service (HTS), enabling businesses to issue and configure tokens on the Hedera platform. Leemon Baird, CTO and Co-Founder of Hedera Hashgraph, says the network supports “a wide array of innovative applications.”

Why the partnership?

With the new partnership with LCX, Hedera aims to leverage the technology infrastructure of LCX to expand the Hedera Token Service (HTS). Hedera and LCX want to establish a new security token standard and provide “secure, reliable, transparent, and compliant infrastructure for digital securities,” reads the official press release. HTS combined with LCX’s compliant token sale manager shall offer a faster and more efficient alternative for smart contract token creation.

The Liechtenstein protocol, introduced at the top of the Hedera distributed network, will enable organizations to use LCX’s Liechtenstein Protocol framework to create security tokens. That enables them to automatically enforce certain conditions related to legal and regulatory requirements applicable to securities. It also allows for automatic compliance of the tokenized resource with predefined requirements embedded in the code. Baird says LCX can benefit from Hedera’s “unique properties of speed, security, and fairness with a low carbon footprint, which will accelerate the adoption of this emerging market.”

In concrete terms, LCX and Hedera say their communities will benefit from the strategic partnership in three ways:

  • The Liechtenstein Protocol willimplement a new standard for digital securities enabling on-chain and on-token-level compliance on the Hedera network.
  • Hedera and LCX will develop a framework for tokenizing securities, the infrastructure for security tokens, and corporate tokens (permission-based tokens).
  • LCX will list Hedera’s native cryptocurrency, HBAR, on the LCX Exchange. 

“There is an immediate need for practicable standards for digital securities to help businesses around the world simplify and enhance how they issue security tokens, raise funds or establish new blockchain-powered financial instruments,” said Monty C. M. Metzger, CEO and Founder of LCX. “LCX’s partnership with Hedera Hashgraph is an important milestone in our efforts to digitize traditional processes and help spur innovation in this critical industry segment for the decades to come.”

Image: © Hedera Hashgraph And LCX Collaborate To Develop Infrastructure For Digital Securities – LCX