In a process that took roughly 9 months, Luxembourg based, Black Manta Capital, was awarded licensure to operate an STO platform within Germany. This licensure was provided by regulatory body, BaFin.
This development moves the company one step toward their self-described mission of setting “a global standard for Security Token Offerings (STO).”
In their release, the company hinted towards a launch date, stating,
“The operative start of the investment platform with the first Token Offerings is planned for early Q4/2019.”
The approval received allows for Black Manta Capital to offer clients services surrounding security token offerings. Black Manta Capital has indicated that they intend for this platform to function as a comprehensive offering – meaning that they will provide clients all the necessary services from start to finish, through the tokenization process.
The act of tokenization involves selling, creating, and distributing digital securities which represent ownership of a variety of assets. These assets may range from cars, to art, to equity within a company, and anything in between. As these digital assets are securities, their creation and distribution is only possible when adhering to laws enforced by typical regulatory bodies, such as BaFin.
The STO platform to be offered by Black Manta Capital is expected to face stiff competition, as Europe is quickly becoming a hot bed for companies with similar ambitions. The following are a few of those expected to fit this role.
Upon making their announcement, Managing Partner of Black Manta Capital, Christian Platzer, took the time to comment. The following is what he had to say on the matter.
“Tokenization in the core financial field of securities will – for sure – bring paradigmatic change to the global financial markets.” – “While Black Manta Capital Partners want to be ‘boutique’ in its beginnings and run ‘handpicked’ STOs only, our strategy is global from day one: the first step is to link Europe and Asia on one blockchain-based investment platform. Therefore we look already today into Singapore.”
Black Manta Capital
Black Manta Capital is a young company which specializes in tokenization services. Operating out of Luxembourg since 2018, the company has plans for eventual expansion across various continents.
Managing Partners, Christian Platzer and Alexander Rapatz, currently oversee company operations.
BaFin is a leading financial supervising authority across Europe. With over 2,600 employees, this regulatory body oversees a variety of industries ranging from finance, to banking, insurance, and more.
The organization has been operational since being founded in 2002.
In Other News
Today’s announcement is not the first time that BaFin has provided licencing to outfits partaking in the digital securities sector. The following articles demonstrate a pair of other companies that have also been successful in this respect.
Blue Ocean Management Partners Invests in Blue Ocean Technologies
This week, Blue Ocean Management Partners, LLC announced an investment in New York-based Blue Ocean Technologies, LLC. The firm intends to utilize its experience to provide much-needed senior management to Blue Ocean Technologies. The news showcases growing interests in the Blue Ocean platform.
Blue Ocean Technologies
Blue Ocean Tech seeks to expand the development of the after-hours markets for U.S.-listed securities, including ETFs and related securities. The new platform will provide U.S.-based traders the ability to track off-hours market movement and react accordingly. Importantly, investors will now be able to better manage risks.
Additionally, the platform provides opportunities for foreign investors to have after-hours access to the U.S. capital markets. Providing 24-hour access to the securities markets is important for a myriad of reasons. For one, it provides users with more investment opportunities. This data and technical services are critical for the functionality of numerous regulated trading venues.
Speaking on the developments, Blue Ocean Management CEO and President Ralph Layman described how the strategic partnership brings much-needed senior management resources to the platform. In turn, this experienced leadership can help guide the platform through its next growth stages.
For its part, Blue Ocean Management will provide management and expertise. The firm has experience building FinTech firms from startup. As such the company seeks to expand the support for 24-hour market access for both securities and EFTs. Together, securities and EFTs are the second largest class of investments across Asia and Europe.
Major Backing Continues
Blue Ocean management isn’t alone in its quest to further develop the off-trading hour capabilities of firms. Already, the FinTech firm managed to secure support from some of the largest players in the game. One such investor is tZERO.
Earlier in the year, Overstock.com’s blockchain subsidiary tZERO became another major backer in the Blue Ocean platform. tZERO is a market pioneer in the space and their backing showcases the true potential that Blue Ocean’s 24-hour strategy possesses. tZERO has filed numerous blockchain patents over the last two years. The firm is at the forefront of blockchain adoption.
Discussing the investment strategy, tZERO’s CEO, Saum Noursalehi praised the new partnership. He explained how the maneuver allows tZERO to “focus on its important strategic initiatives with digital securities.” tZERO seeks to tokenize the traditional financial markets over the next 5-10 years.
Blue Ocean Moves Forward
As the more industries migrate to a blockchain-based system, it’s important that developers create the ecosystem to support the robust capabilities of these new platforms. Both analysts and traders agree that 24-hour access to markets is one of the best ways to spur growth. This line of thought becomes more evident when you consider that this new strategy opens up the US market to international investors in a way previously unimaginable.
The Blue Ocean platform brings greater efficiency and transparency to capital markets. In this way, analysts predict the platform to be disruptive to the current systems. You can expect to hear more from this unique platform as development continues over the coming months.
BnkToTheFuture Eyes U.S. Based STOs through BMI Capital Investment
Recently, BnkToTheFuture has shed light on their future aspirations through a new investment. This move saw the Cayman Islands based company acquire a stake in United States based broker/dealer, BMI Capital.
By acquiring a stake in the company, BnkToTheFuture now gains the ability to make use of existing licensure held by BMI Capital – including their status as a registered broker/dealer.
With the future of blockchain holding a global appeal, many industry participants have announced their intent for expansion beyond their own borders.
The following articles demonstrate a few of these decisions, as companies beyond BnkToTheFuture look to enter foreign countries.
The importance of becoming a broker/dealer, by proxy or otherwise, cannot be understated. The designation allows for a company, such as BnkToTheFuture, to expand their services to include the buying and selling of securities.
For more information on the role assumed by broker/dealers, make sure to check out our terminology page.
“We forecast by 2020 up to 50 percent will opt for an innovative security token that improves the potential for returns for investors over traditional equity. We are aiming to build a new industry and asset class.”
Building a Foundation
Over the past few months, any have noted that the digital securities sector is slow to take off. With other capital generation events, such as ICOs, having experienced rapid growth in the past, many expected the same from digital securities.
A growing amount of companies have entered the sector from various points around the world. Each of these companies are hard at work developing the necessary infrastructure to support future growth.
It is important to recognize, however, that STOs are completed in a regulatory compliant manner, which requires participants to hold a variety of designations, such as that of a broker/dealer. Attaining these capabilities takes time.
The companies involved are not trying to run before they walk. A more strategic approach is being taken to ensure that the industry is ripe for growth when true adoption occurs.
Founded in 2011, BnkToTheFuture is a Cayman Islands based investment platform. The company specializes in utilizing new technologies, such as blockchain, to facilitate the offering of high potential opportunities for investors and companies alike.
This United States based investment firm which was founded in 2012. With licensure attained through FINRA, BMI Capital is able to operate as a broker/dealer.
CEO, Robert H. Trapp, currently oversees company operations.
In Other News
Over the course of the last year, we have covered events pertaining to BnkToTheFuture on various occasions. The following articles share insights into a few of these events.
Legend Siam Security Token Offering Facilitated by VEWC
Via East West Capital has recently opened up regarding an STO which they curated recently. This STO was a capital generation event which saw the distribution of tokenized securities associated with a cultural theme park in Thailand, known as Legend Siam.
Legend Siam Tokens
In this event, investors gained access to what the issuer calls ‘Legend Siam Tokens (LST)’. These tokens were treated as securities, and were offered through Reg. D guidelines under the SEC.
While details on the tokens, themselves, are scarce at this time, it appears as though they took shape as some type of real-estate backed token, based on the cultural theme park.
As the digital securities sector continues to develop, participants are being drawn in from new, interesting markets. In the past year we have reported on STO opportunities surrounding, but not limited to, the following industries.
With the announcement surrounding Legend Siam, we can now add ‘Theme Park’ and Commercial Real Estate to that list.
Via East West CEO, Oh Shen King, took the time to elaborate on STOs, stating,
“We predict a rise in the potential and demand for tokenized securities because digital ownership on the blockchain provides so many advantages over legacy investments, and tech-savvy investors are seeing the value proposition in real-time…This addition to our business is just a natural extension of our vision for a crowd-financed world, and we provide 100% transparency to all our investors.”
Via East West Capital
Operating out of Southeast Asia, Via East West Capital is an investment firm focused on ‘tokenized asset investments’.
CEO, Oh Shen King, currently oversees company operations.
Legend Siam is a well-known attraction in Thailand. It operates as a popular theme park, built with the intention of promoting Thai history and culture.
In their release, it is indicated that the park now spans over 65 acres, with hundreds of shops, and various attractions. In total, the park now has an estimated worth of over $131 million.
In Other News
Thailand has made it obvious that they are vying to become a leader in the blockchain industry, including digital securities. This much was made evident in a recent decision by their government to potentially legalize security tokens. In addition to this, there have been various blockchain based companies welcomed into the MAS FinTech Sandbox.