A technology company that allegedly owes $4.4 million to ASX-listed Serpentine Technologies hopes to launch the world’s first “Security Token Offering” on Canada’s proposed new cryptocurrency-style stock market.

The Canadian Securities Exchange this week announced its answer to the cryptocurrency market — a blockchain-based platform allowing stocks to “bypass the traditional paper-stock-certificate system and move to equity securities tokens”.

The tokens — also known as tokenised securities — represent a share in a business and would be issued via a “Security Token Offering” or STO.

And the first cab off the rank?

None other than Kabuni Technologies — a tech play that ASX-listed Serpentine last year sold back to its former boss and founder Neil Patel.

Serpentine says Mr Patel’s new 3D printing start-up Print The Future owes them $4.4 million associated with the deal.

Mr Patel told Stockhead last month that “making sure Serpentine are paid is my highest priority at present”.

Serpentine (ASX:S3R) will be hoping Canadian regulators allow Kabuni’s “Security Token Offering” to go ahead — so it can recoup some of the $4.4 million it is allegedly owed.

“This would mark the first time a tokenised security has been listed for trading on a recognised securities exchange,” the Canadian Securities Exchange said.

“Our platform represents an intersection between blockchain and the capital markets that delivers on blockchain’s promise to disrupt conventional transaction and record-keeping mechanisms, thereby providing tangible benefits for market stakeholders,” Canadian Securities Exchange chief Richard Carleton said.

The Kabuni tokens would use blockchain technology to secure the production of 3D assets, specifically protecting IP and secure payment.

The company signed a memorandum of understanding with the new exchange and, if passed, would mark the first time globally that a tokenised security has been listed for trading on a recognised securities exchange.

S3R’s last quarterly showed just $517,000 left in the bank.