As the world continues to make progress in the fight against COVID-19, the appeal of digital securities continues to grow. This is, in great part, due to a diminishment of VC activity being seen, resulting in an increased interest in alternative means of capital generation.
This edition of ‘The Digital’ highlights a few examples of this, along with a few illuminating interviews, completed throughout April.
One of the more commonly anticipated benefits associated with digital securities is the advent of secondary markets, due to the liquidity which they will, potentially, provide.
April ended as a mixed bag, with regards to secondary markets. While leading U.S. platform, OFN, struggles with their financials, Canadian based, TokenGX, was given the greenlight for their next endeavour.
Strategic Investments + Raising Capital
As consumer bases becoming increasingly educated, companies with a focus on social impact investing will see their appeal grow. EFFV has recognized this, and announced an upcoming STO, structured to fuel their growth in ‘green’ endeavours.
Along with this, April saw tZERO successfully land a $5 million investment. The company indicates plans to use this funding for the expansion of services within Asia.
One of the hottest forms of digital assets is, without a doubt, Stablecoins. These assets have garnered the attention of many, to the point that Facebook is developing their very own variant. This past month saw development, not only surrounding Libra, but insights provided from, both, politicians and researchers.
In The News
Playing in the ‘Tokenization Sandbox’ with Vertalo
With the digital securities sector being multiple years old, at this point, the time has come for companies to begin pushing for real adoption. Vertalo has recognized this, and recently announced multiple efforts to do just that. The most recent of which is the launch of, what they call, a ‘Tokenization Sandbox’.
Vertalo CEO, Dave Hendricks, spoke on the purpose of their Tokenization Sandbox, and why it is needed.
“The Vertalo Sandbox Program is an innovation that is designed to reduce obstacles to digital asset transformation and to empower market participants…In order to create confidence in the digital transformation programs, we need to move past expensive services for commodity transactions such as token issuance.” Read Here
Mr. Wonderful Aligns Efforts with Equity Crowdfunding Platform, ‘StartEngine‘
Determined to continue growing, and provide their clientele with unmatched opportunities, StartEngine was successful in attracting new talent to their team, this past month. Joining the team is none other than Kevin O’Leary, aka Mr. Wonderful.
Kevin O’Leary spoke on why he decided to make the jump into crowdfunding with StartEngine.
“With the coronavirus pandemic causing economic uncertainty, startups and small businesses are having an incredibly hard time accessing capital, so you’re going to see a material increase in interest in crowdfunding companies like StartEngine that are solving that problem…We’re going to look back on this period as the start of the rise of equity crowdfunding, and I think it’s an industry that StartEngine is going to win.” Read Here
Jim Dowd, Founder & Managing Director of North Capital Private Securities
In this exclusive interview, we discussed the recent launch of a new ATS, supporting a variety of assets, including digital securities. This development marks an important step forward, at a pivotal time, when investors are looking for such services. Read More
Nick Bhargava, Cofounder of GROUNDFLOOR
As the cofounder of real-estate focused crowdfunding platform, GROUNDFLOOR, Nick Bhargava has unique insights into the JOBs Act. In this discussion, we highlight industry needs, moving forward, as well as what GROUNDFLOOR has to offer. Read More
Benjamin Tsai, President & Managing Partner of Wave Financial
Between their upcoming ‘Kentucky Whiskey Fund’, and their investments in companies like Securitize and Vertalo, Wave Financial is clearly ‘all-in’ on digital securities. Peruse our discussion with Ben Tsai, as he elaborates on why this is. Read More
Around the Web
Instant Access: Easy, Secure and Compliant Peer-to-Peer Transactions of Digital Securities – Securitize
With many digital security focused exchanges still working to get off the ground, Securitize has developed, and launched, a new means of buying/selling these assets. This capability comes through the use of technologies such as ‘Atomic Swaps’, eliminating the need for third party facilitators. Read More