ConsenSys, a major blockchain firm founded past Ethereum co-founder Joseph Lubin, has acquired an American broker-dealer, Heritage Financial Systems.

Heritage, a banker-dealer registered with the United States Securities and Exchange Commission (SEC), has been acquired past ConsenSys's own banker-dealer, ConsenSys Digital Securities. ConsenSys' blockchain-powered commerce and finance arm ConsenSys Codefi appear the news on Feb. 4.

Heritage conquering to bolster ConsenSys advisory and broker-dealer capabilities

By purchasing Heritage, ConsenSys intends to reinforce its advisory and banker-dealer capabilities that will help the business firm to implement blockchain technology for issuing tokenized bonds offerings in the municipal market.

Emma Channing, a representative of ConsenSys Digital Securities who volition coordinate the brokerage effort through Heritage, said in an e-mail to Cointelegraph:

"The acquisition will bolster ConsenSys in-house broker dealer capabilities by adding municipal finance in addition to some other lines to our existing line of private placement concern at Consensys Digital Securities."

Specifically, ConsenSys is planning to utilise blockchain technology to deploy automatic bond payments via smart contracts likewise as to allow issuers to track who owns the debt. Additionally, ConsenSys wants to develop tokenized mini-muni bonds via its Codefi platform in order to provide issuers with the opportunity to sell securities in smaller denominations.

ConsenSys has been actively pushing its STO expertise

Founded in 2022 in Brooklyn, New York, ConsenSys Digital Securities is a ConsenSys' banker-dealer arm that develops services for issuers who are willing to launch security token offerings (STO), or tokens that are backed by existent-world assets such every bit stocks or bonds.

In March 2022, ConsenSys Digital Securities partnered with major U.S. STO-focused firm Satis Group, a company registered with the U.S. Financial Industry Regulatory Say-so. According to ConsenSys, the combined teams had over $100 million in issuance experience, while the partnership underscored ConsenSys' commitment to realizing the potential of tokenized financial assets.

As reported past Cointelegraph, security token offerings take been increasingly popular recently, starting to provide some competition to the initial public offering, which is the process by which a private visitor tin can become public by selling its stocks to the general public.

Other companies in the crypto industry have been actively embracing the STO market so far, with Overstock'due south blockchain arm tZERO recently announcing its plans to launch its own crypto and digital asset broker-dealer service in the first half of 2022. Previously, tZERO's Boston Security Token Exchange filed an awarding with the SEC to approve the launch of a market place for publicly traded registered security tokens.