06 Jan Tokenised News Weekly: 1st week of Jan 2019
[News release period: 31 Dec 2018 – 6 Jan 2019]
Security tokens start the year with a bang
Security tokens entered the year on a strong footing as the emerging industry recorded some noticeable achievements over the past few days. Here are some of the top events that took place last week.
SEFToken Inc. To Launch a Digital Covered Warrant On The Securitize Platform
In a move that will be the first in the industry, SEFtoken Inc. announced yesterday, January 5th that it has concluded plans to launch a new tokenized financial instrument. The instrument dubbed as the covered warrant will function similarly to when a holder is allowed to purchase or sell the security at a set price up until a set date.
The company revealed that the security token would be sold through the Securitize platform, with the Ethereum network supporting it. They added that the covered warrant could be converted into equity through Mercari, which is an exchange based in Australia.
The sale of the tokenized warrants will make it possible for issuance and sale of digital securities to take place in regions where it wasn’t previously possible. The company is now looking to raise between $31 million and $125 million to develop its SEC-compliant digital warrant offering.
Apple, Facebook, And Tesla Stock set to be Tokenized
Perhaps the biggest news this week is the revelation that real-world shares representing ownership in Apple, Facebook, and Tesla will become tokenized and set to be available to investors in the upcoming week.
On January 3rd, DX Exchange announced that it would be listing shares of some giants like Apple Inc., Facebook Inc., and Tesla Inc. The listing of these stocks will enable investors to purchase the security tokens which would be digital representations of the real-world stocks.
According to the press release, each security token will represent one regular share. They added that the security token holders would be given the same cash dividends as traditional shareholders who invested in the stock via regular platforms like the NYSE.
The companies, Apple, Facebook, and Tesla, will not be directly involved. DX Exchange has partnered with MPS MarketPlace Securities Ltd that will purchase the shares and hold them. The shares purchased by MPS will be tokenized on the Ethereum blockchain and be made available for purchase on DX Exchange.
According to DX Exchange CEO Daniel Skowronski, the security token industry is a huge market that will grow even bigger as it will merge the traditional markets with blockchain technology.
First Security Token Framework in Africa to be Established
Security tokens are coming to Africa after Bahamian-Kenyan tech startup Raise announced that it has partnered with Kenyan corporate law firm Anjarwall & Khanna (A&K). The partnership will see the two companies set up the first security token framework in the continent.
According to the press release, the two companies will work alongside the African Digital Asset Framework (ADAF) to develop contract templates, legal definitions, outlines for tokenized security offerings, and general standards for the security token space in Africa. The framework will cover areas such as property ownership, shares, debts, commodities, fine art, and insurance.
Raise stated that the framework to be created will follow the guidelines put in place by ADAF which was established last month. Raise CEO Marvin Coleby while talking at the Business for Africa Forum in Cairo pointed out that clear framework for digital tokens will lead to innovation in the security token industry and might lead to an increase in SME financing and liquidity for private markets.
By partnering with A&K, Raise would have the opportunity to work with top talents in the continent and Raise is looking to set their security token standards and platforms very soon.
LeadBest Partners Polymath to Establish Security Token Ecosystem
Blockchain Company LeadBest announced on Thursday, January 3rd that it has partnered with polymath with the aim of creating a token economy system. Polymath which is a popular security token platform is set to expand its business in Asia with this latest development.
According to LeadBest, the establishment of the security token ecosystem is important in setting global standards on the implementation and use of digital securities on a technical level. The company is of the view that the partnership will play a key role in increasing the adoption of the security token space.
STO Global-X Releases End-To-End Security Token Platform
STO Global-X, a Singaporean-based company, has announced the official launch of its security token platform STO Global Exchange (STGX). The platform has been developed offer issuance management while also enabling the trading of security tokens and other digital assets.
The STGX platform will enable licensed institutions and digital asset exchange operators to offer security tokens of both tangible and intangible assets. Asides creating security tokens, the platform will also offer investing, trading, and ownership of other digital assets via fully-compliant process put in place.
STO Global-X CEO Floyd DCosta is of the view that security tokens offering will positively transform the traditional world of finance. As such, STGX is strategically placing itself to ensure that institutions can issue, manage and trade tokenized securities. This would allow people to own real-world assets on the Blockchain. BMI Capital Partners International and Coinstreet Partners were also involved in the development of this platform.
Goren Holm Group Launch Security Token Summit LLC
Goren Holm Group which is popularly known for creating the Crypto Investment Summit announced on Thursday, January 3rd that it had launched a new company Security Token Summit LLC.
Security Token Summit is set to host an event in Los Angeles later this year where numerous topics including custody, compliance, regulation, investing, marketing, tokenization, real estate, and others will be discussed.
The Security Token Summit was designed to abide by the existing securities regulations such as Regulation Crowdfunding, Regulation A+, and Reg D 506c (accredited crowdfunding) which supports raisings funds online. The company is of the view that combining securities with Blockchain technology has led to a new class of digital assets that have greater democratization of capital for both investors and issuers.