3 Months Ago

In a recent report from Blockstate, in Switzerland, it revealed that so far in 2019 there are over 120 planned or launched Security Tokens Offerings (STOs).

These STOs have already raised over $1 billion, compared to 2017, when there were only 5 STOs which raised $67.5 million. STOs are set to replace Initial Coin Offerings (ICOs) as a method to raise capital and, because they are subject to much greater regulation and typically backed by real assets such as bonds, equity, commodities, property, etc., they ought to perform in a much less volatile manner. Given the higher regulatory bar that a STO has to comply with, STOs are likely to be much more attractive to institutional investors and will be traded on regulated exchanges across the world. The Blockstate report highlights that five countries are dominating STOs - Estonia, Germany, Switzerland, UK, and USA - who between them, account for 75% of the STOs issued to date.

The infrastructure to offer more STOs also continues to develop, as seen by the announcement of the tie-up between Globacap and Archax this week, both of which are regulated by the FCA in the UK. Globacap is a platform that has been built to be able to issue Digital Assets/STOs and is similar to Tokeny (which has just had €5 million invested into it, as detailed above by Euronext) and also has a partnership with Archax to use its exchange.  In 2018, Globacap tokenised its own shares. Then, in 2019, the platform tokenised two UK-based companies, helping them to raise capital, with Globacap serving as the custodian. The purpose of the platform is to provide built-in compliance to properly transfer ownership from traditional assets to Digital Assets.

Archax is looking to officially launch its exchange, which is intended to trade Digital Assets later this year. It will be using Blockchain technology to reduce costs and offer more transparency, both of which Archax believes are of great interest to the institutional investors that it is targeting.

The first STO in Germany, which was authorised by BaFin, took place in March 2019, raising €3.5 million for a company called Bitbond, a business that offers loans to small companies. Therefore, there is plenty of evidence that not only are STOs gathering greater traction but as we see more infrastructure in place it will enable asset managers and banks to be further engaged with Digital Assets. We have already seen the likes of Goldman Sachs and Fidelity offering custody solutions and Avia providing STO insurance, so all that we really need is evidence of good liquidity for STOs. If we see attractive trading volumes in STOs, Digital Assets really will be able to give their analogue paper-based alternatives a real run for their money!

 

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Security Token
STO

6 Months Ago

The German government has issued a paper laying out how it wishes to encourage the spread of Blockchain businesses and “electronic instruments “ i.e. Digital Assets.

They want to ensure that investors are protected while expanding Germany’s global role - so that they’re not left behind in these sectors. 
Interestingly, German firm Naga was the first publicly listed company in Europe to carry out an Initial Coin Offering ( ICO), in 2017 when it raised Euros 40m from over 50,000 investors.
This announcement from the German government comes hot on the heels of its financial regulator, BaFin confirming that they have approved BitBond to issue Digital Bonds. This will be Europe’s first fully regulated Security Token. Bitbond has already issued $15m of loans and its platform has over 165,000 registered users. So like Naga seems to be attracting considerable interest from investors. 
The issuing of bonds using Blockchain technology is believed to be able to reduce the associated costs by over 60% so ought to enable smaller companies to be able to offer bonds creating an alternative source of finance. 
If issuing bonds using Blockchain technology is successful in reducing costs and allowing SMEs to issues bonds, then the Peer To Peer (P2P) lending market could face new competition. The P2P market is expected to grow to nearly $900 Billion by 2024. 

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https://www.devdiscourse.com/article/internatio...egulations

7 Months Ago

Fusang in Malaysia is the first exchange in Asia to get a license to operate a Digital Assets securities exchange.

The Asian securities exchange will promote tokenization as an option for traditional companies holding real assets, while also simplifying trading of digital securities, Crypto, and Fiat currencies on a single platform. This exchange follows on the heels of Fusang group having launched an institutional managers custody service for Crypto assets last year.

Interestingly, we are seeing Asia being more open and embracing Digital Assets compared to Europe and USA as Thailand are expected to be launching a Digital Asset exchange in 2019.


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https://bitcoinexchangeguide.com/malaysia-welco...-platform/
Momentum for the issuing of Security Tokens is gathering pace in Europe with a Blockchain powered company called Bitbond, announcing it now has regulatory approval from BaFin (German Federal Financial Supervisory Authority) to launch a bond to raise up to Euros 100million using the Stellar Blockchain.

In contrast to ICOs, the securities prospectus for token-based bonds gives investors transparency and comprehensively documents their rights and the terms of the offer. The bond is subject to BaFin’s regulatory control. Bitbond has been approved as an asset broker under the German Banking Act for its Blockchain-based lending business and is the first financial services institution of this type to be supervised by BaFin.

We have already seen BBVA the Spanish bank using Blockchain technology to issue a bond, as have NIVURA in London.

It is thought that issuing bonds on a Blockchain could reduce the issue costs by 50% to 70% so potentially small to medium size companies could start using the bonds to raise capital on Blockchains.


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https://coingape.com/bitbond-becomes-first-regu...tification

8 Months Ago

We have been asked on a number of occasions what are the repercussions if you do not comply with the regulator…

Well following a FBI investigation Homero Garza is now doing time for his involvement in an alleged scam where over $9million of other people’s money was lost. The other question often asked is ‘following the 2008 financial crash no one went to prison” but this is not true according The Financial Times 47 people have been sentenced to date. The lesson is the regulators have teeth and WILL use them and as we increasingly see more and more Security tokens being issued organisations need to ensure they are complying with the relevant regulations wherever selling a token…

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Law
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Security Token
https://bitcoinexchangeguide.com/fbi-gives-payc...tor-heist/


One of the bigger asset classes is property yet it is largely been the preserve of wealth sophisticated investors or institutions. It historically has suffered from a lack of liquidity, some argue transparency and little innovation until now. Having a Digital Asset-backed by property and then being able to trade 24/7 attracting smaller investors on a global basis potentially could increase liquidity substantially.

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Property Development
Security Token
Digital Asset
https://thefintechtimes.com/property-market-tokenisation/
Security tokens address the concerns of many investors as they are typically backed by physical assets and therefore ought not to be as volatile as the cryptocurrencies created by ICOs.

According to Bussiness Korea, the country’s leading blockchain research centres, Chain Partners’ CP Research and Coinone Research Centre, have identified STOs as the next big thing for the crypto industry.

CP Research added that they provide a solution for assets that are difficult to liquidate such as real estate or art. It said that 2019 will see the establishment of an STO infrastructure and the market will grow to an estimated $2 trillion by 2030.


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http://www.businesskorea.co.kr/news/articleView...dxno=28473
It has been a long wait for Overstock who announced in 2014 that they were planning to open a security trading platform BUT this week finally it ought to open.

The intention is that there will initially be 60 Cryptocurrencies available to trade. There are likely to be a number of platforms that are able to trade Digital Assets opening in 2019 further helping regulated asset managers and banks to be able to be more engaged in this new asset class. The tZERO trading platform will be regulated and designed to help raise capital and well as offer liquidity for assets that traditionally have not had active secondary market trading.

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Finance
Security Token
https://www.coindesk.com/overstocks-patrick-byr...-next-week
Belarus has launched a trading platform that enables customers to buy tokenized versions of shares, gold and other assets, Reuters reported Jan. 15.

 The platform started with 150 assets but hope to grow this to over 10,000 and within the first few hours of opening claimed it had over 2,000 people register on its platform. It will be possible to buy shares, gold, precious metals like gold, foreign exchange, and more, in addition to cryptocurrencies.

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Finance
Security Token
https://www.investinblockchain.com/belarus-laun...-platform/

9 Months Ago



You may find this checklist helpful before you talk to your lawyer! A list of the types of questions a lawyer will want answers to given STOs will need to comply with Security legislation in different jurisdictions. While this process is lengthy those that follow the rules and have a digital asset that can be traded potentially 24/7/365 globally could steal a real advantage of their competitors…

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Cryptocurrency
Security Token
https://www.koreconx.com/2018/09/12/top-questio...sa-canada/


Co-founder of TeamBlockchain, Thomas Power with over 30 years of experience building online digital communities believes that it is just time before the FANGs - Facebook, Amazon, Netflix, Google start gobbling up the leading crypto players. Just like Dotcom, there will be a handful of winner form the 5,000 ICOs we have seen to date as they give way to the more compliant institutional friendly Security Tokens.

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Source: Why crypto will be eaten by Facebook, Google, Amazon and Apple