The initial coin offering market was white hot in 2017, raising a record $4 billion in capital investment. Data also shows that of the 902 token sales launched last year, 46 percent of them have already failed.

Nevertheless, investors aren’t deterred from continuing to dive into the token pool, nor have companies shied away from pursuing partnerships and new technologies in the digital currency space. Among the latest industry team-ups, announced during last week’s Polycon18 gathering in The Bahamas, involves Polymath Inc., which provides a launchpad for financial companies to issue security tokens, and Lexit OÜ, a blockchain-powered marketplace designed to make mergers and acquisitions easier.

“The security token in its purest form is an asset,” said Amir Kaltak (pictured, center), founder and chief executive officer at Lexit. “We want to work together and create an ecosystem in the future between Polymath and Lexit.”

Kaltak visited the set of theCUBE, SiliconANGLE Media’s mobile livestreaming studio, and spoke with host John Furrier (@furrier) at the Polycon18 event in The Bahamas. He was joined by Trevor Koverko (pictured, left), chief executive officer of Polymath, and they discussed the partnership between the two companies and opportunities in the security token arena. (* Disclosure below.)

Guiding the token launch

Polymath’s business model is designed to guide startup companies through a morass of legal processes that are part of launching a token. The firm is seeking to carve out a market from asset-backed securities, including bonds and derivatives, that are moving onto the blockchain.

“We’re trying to literally reimagine Wall Street,” Koverko said. “To do that requires new forms of structure formation of capital.”

Prior to its partnership with Lexit, Polymath closed deals in December with Corl Financial Technologies Inc., SeriesX and Ethereum Capital Inc., which were planning to launch security tokens using Polymath’s platform. The company’s security token launch pad went live in February.

Lexit’s role will be to serve as a liquidation venue for Polymath’s security tokens, part of the trade menu of assets that will be listed on the company’s platform. “I believe that security tokens are going to be a big part of our future revenue on Lexit itself,” Kaltak said. “I can’t miss out on that one.”

Watch the complete video interview below, and be sure to check out more of SiliconANGLE’s and theCUBE’s coverage of Polycon18. (* Disclosure: Grit Capital Partners sponsored this segment of theCUBE. Neither Grit Capital Partners nor other sponsors have editorial control over content on theCUBE or SiliconANGLE.)

Photo: SiliconANGLE