Connect with us

Token Solution Providers

Custodianship – A Look at Various Industry Solutions

mm

Published

 on

Custodianship - A Look at Various Industry Solutions

Industry Hurdles – Custodianship

In under two years, the state of custodianship within blockchain has grown by leaps and bounds. A mere eighteen months ago publications were posting about ‘The sad state of crypto custody’. Six months after that, custody solutions were noted as a rapidly developing innovation within the industry.

A major driving factor behind the development seen, with regards to custodianship, is due to the narrative of ‘institutional capital’ entering the world of crypto. If this is to occur, they will require trusted companies to provide this service.

Today, various companies which recognized the lack of solutions in the industry have launched, and established beginning levels of adoption. The following are a few of these companies, and what they are bringing to the table.

Anchorage

In a recent, and promising, bit of news, payment processing giant, VISA, Blockchain Capital, and others, invested $40 million USD into a blockchain based custodial solution – Anchorage. This raise represented a Series B, with the company previously raising $16 million in their Series A mere months ago.

This young, promising, company has taken a different approach to providing a safe haven for digital assets. Rather than using passwords and usernames, the platform relies on a mix of human and artificial intelligence to verify transactions on whitelisted devices.

Anchorage has stated that, in time, their platform will support all forms of digital assets. This versatility, and interest in the sector shown by companies like VISA, points to a bright future.

Unbound Tech

One of the most anticipated digital securities exchange launches of 2019, is the upcoming Archax Exchange. With a projected launch in Q4 of 2019, it is imperative for Archax to establish all of the necessary partnerships and services sooner than later. The latest puzzle piece to fall in to place would be the decision to utilize custodial services, offered by Unbound Tech.

Unbound Tech, which operates out of New York, has developed a DLT based platform which breaks up and stores data among various parties. This is done with the intention of eliminating a single point of weakness within a storage network. No doubt, their innovative, and polished, platform led to this strategic partnership.

Copper

The rise of digital securities has also resulted in the rise of numerous issuance platforms. In order to remain appealing to their clients, each of these platforms must either offer their clients direct access to a custodial service, or redirect them to a third party.

One of the most promising issuance platforms, SWARM, has experienced better adoption than most, to date. Not offering any ‘in-house’ custodial service, SWARM established a strategic partnership with U.K. based, Copper.

Copper provides institutional grade custodianship through the use of a practice called ‘air-gapping’. This simply refers to the practice of ensuring their cold storage devices are, not only not connected to the internet, but not connected to any other device which maintains an internet connection.

Upon establishing their alliance, SWARM Cofounder Philipp Pieper, had high praise for Copper. He stated, “The integration between Copper and SWARM is a great fit due to the compatibility of our technologies as well as our teams…Copper provides the level of institutional grade security and convenience that is absolutely essential for the adoption of digital securities by institutional investors and retail market,”

Coinbase

Love them or hate them, Coinbase remains at the forefront of the blockchain industry. This means that when their custodial solution, ‘Coinbase Custody’ announced support for their first digital security, it represented an important step.

The reason this step is an important one can be broken down various ways, but is primarily positive, due to the increased exposure which Coinbase will afford the nascent digital securities sector. Most participants in the world of blockchain are well versed in ICOs, but have not necessarily been exposed to STOs and DSOs. Support of assets issued through these capital generation events, by an industry leader, is most definitely a step forward.

Carlos Domingo, CEO of Securitize, tweeted at the time of this announcement.

TokenSoft Knox Wallet

TokenSoft has been one of the busiest companies within the digital securities sector throughout 2019. One of their various steps forward, came through their various custodial solutions for clientele. While the company has formed an alliance with Coinbase Custody, TokenSoft has developed their own solution for those interested.

‘Knox Wallet’ is the name of this offering.  It is a mobile custody solution, which brings full support for various digital security protocols.

Knox provides its users with security through the use of various tactics. These include cold storage, role-based access control, and cryptographic authentications.

While Knox remains in beta, it has the potential to become a key player in the digital securities sector.  It remains one of the only mobile based custody solution to support the asset class.

Continued Growth

An entire subset of the blockchain industry was essentially birthed from nothing, in less than two years.  It has since grown into a promising grouping of service providers. While time and development move slowly in the moment, reflecting on growth within blockchain shows fantastic speed of development, wherever you look.

The companies discussed here today are essentially writing the custodial solution blueprint on the fly. As these industry trailblazers demonstrate what works, and what doesn’t, we should continue to see increasingly polished solutions presented. One such example may prove to be the upcoming Facebook project, Calibra.

Spread the love

Joshua Stoner is a multi-faceted working professional. He has a great interest in the revolutionary 'blockchain' technology. In addition to this, he is a licenced Paramedic in Nova Scotia, Canada. As such, he can provide emergency care/medicine to any situation necessitating it.

Token Solution Providers

BitGo Works Towards ‘Full-Stack Solution’ with Harbor Acquisition

mm

Published

on

bitgo

Acquisition

With roots in custodial services surrounding digital assets, BitGo has established themselves as an industry mainstay since their 2013 launch.  In the time since, the team behind the Californian company has managed to expand their offerings, growing with the industry it serves.

BitGo has clearly recognised a major shift in the world of blockchain, as digital securities have captured the interest of investors and companies, alike.  Not content with complacency, BitGo has just announced the acquisition of digital securities tokenization platform, Harbor.

On the surface, this move may have caught some by surprise.  When looking closer, however, this isn’t necessarily the case.  BitGo has shown a proclivity for acquisitions in the past, which have each expanded their services in a direct manner.  The pairing of BitGo and Harbor is one that dates back multiple years, as the companies have long worked with one another.

Through their complimentary services, pre-existing relationship, and past actions, the deal looks closer to obvious than a surprise.

At the time of writing, financial details surrounding this acquisition have not been made available.

Services Inherited

As stated, BitGo has shown a proclivity for strategic acquisitions.  Each of their past acquisitions have provided the company access to new capabilities, which are then able to be offered to clientele in an increasingly comprehensive platform.  This acquisition is no different.

Following this development, this list touches on just a few designations now held by BitGo.

Clearly, as made evident from this comprehensive list of designations, BitGo is well on their way to achieving their goal of offering what it calls a ‘full-stack solution for digital securities’.

Commentary

Upon announcing BitGo’s acquisition of Harbor, representatives from each company took the time to comment.

Mike Belshe, CEO of BitGo, stated,

“Our vision has always been bigger than wallets and custody and acquiring Harbor furthers BitGo’s vision of building a new digital infrastructure for financial services…We believe participants will ultimately need trusted, full-stack solutions for digital currencies and now BitGo is well positioned to address institutional requirements as the market develops.”

Josh Stein, CEO of Harbor, stated,

“BitGo has been an important partner since Harbor inception. We’ve worked closely together to integrate BitGo Business Wallets and BitGo Custody into Harbor’s services…Harbor provides BitGo with a complementary technology stack for the lifecycle of digital securities, as well as important service capabilities through our digital assets broker-dealer and transfer agent subsidiaries.”

BitGo

Founded in 2013, BitGo maintains headquarters in Palo Alto, California.  The company has developed into a full spectrum service provider for the blockchain industry.  The company indicates that its operations now span over 50 countries.  Furthermore, they facilitate over $15 billion in crypto-transaction on a monthly basis.

CEO, Mike Belshe, currently oversees company operations.

Harbor

Founded in 2017, Harbor is a United States based company, which specializes as a tokenization platform.  The team at Harbor, notably, developed the ‘R-Token’ standard – tailor built to serve digital securities.

CEO, Josh Stein, oversaw operations prior to acquisition.  It is believed that BitGo will retain Stein in some capacity.

Changing of the Guards

The development discussed here today marks, not the first, but one of several major acquisitions seen in the blockchain industry over the past few months.

Only days ago, we were reporting on the potential upcoming sale of SeedInvest – a crowdfunding platform operated and owned by Circle.  This expected sale is taking place after Circle made the decision to re-focus their efforts, specifically on stablecoins, rather than exchanges, tokenization, etc.

Circle Attempts to Sell SeedInvest, Doubling Down on Stablecoins

Spread the love
Continue Reading

Token Solution Providers

Custodial Specialists ‘Copper’ Draws $8M in Investments through Series A

mm

Published

on

custodial

Custodial specialist, Copper, has recently announced the successful completion of their Series A round of funding.

The team at Copper has indicated that the funds raised during this event will be put to use in two key areas.

  • Global expansion
    • Specifically North America and Asia
  • Product development
    • Investment options targets towards institutional clients

The Details

The completion of their Series A came in to the tune of $8 million.  These funds bring the total raised, to date, by Copper up to, roughly, $9.3 million.

In order to raise the $8 million, Copper saw the participation of multiple companies with high hopes in what they look to achieve.  Contributors are as follows:

  • Target Global
  • LocalGlobe
  • MMC Ventures

Commentary

Upon announcing the results of their Series A, Dmitry Tokarev, CEO of Copper, took the time to comment.  He stated,

Copper was always designed to be a global offering. Since 2017, we have seen many crypto custody solutions emerge that don’t fully meet the needs of institutions. Instead, they have built for an institutional framework that doesn’t exist yet, and is unlikely ever to, leaving institutions discouraged…Our Walled Garden and Prime Brokerage infrastructure truly looks after the security and trading needs of institutions, regardless of their investment strategies and goals. We are seeing volumes increase as our clients see the advantage of our prime brokerage solution, which allows them to make transactions across many trading venues securely and efficiently.”

He continued,

“This venture funding round is a real vote of confidence from investors. Their support will allow us to accelerate our scale up, hiring teams in key regions and introducing new products and services to better meet their needs.”

Custodianship

As the digital securities sector grows, an increasing amount of participants will require secure, trusted, services for storing their assets.  As a result, the custodianship of digital assets has been noted as an important area in which development must take place.

While Copper remains one of the more promising outfits looking to tackle the issues surrounding custody, there remain various competitors developing alongside them.  For example, the following article takes a brief look at some of the leading offerings in the market today, including Coinbase, TokenSoft, Anchorage, Unbound Tech, and of course – Copper.

Custodianship – A Look at Various Industry Solutions

Copper

Founded in 2018, Copper, maintains operations in London, United Kingdom.  Above all, Copper specializes in offering services tailored around the custodianship of digital assets.

CEO, Dmitry Tokarev, currently oversees company operations.

In Other News

There is a clear growing interest in digital assets, and the services surrounding them.  This has been made obvious by multiple successful Series A raises in recent months – Demonstrating a strong belief in the future of blockchain based endeavours.  The following are just a few examples of these successful capital generation events.

Securitize Receives Backing from Sony

Horizon Globex Shakes Up the Team, While Hosting a Successful Series A

Securrency Pulls in $17.75 During Successful Series A

Spread the love
Continue Reading

Token Solution Providers

Smartlands Begins Realignment with Eyes on Liechtenstein Blockchain Act

mm

Published

on

Smartlands Begins Realignment with Eyes on Liechtenstein Blockchain Act

A Diverse Framework

Like any forward thinking company, tokenization platform, Smartlands, is in a constant state of growth.  This means pivoting with developments seen in the digital securities sector, in an effort to continue providing their clientele with the best experience possible.

With this in mind, the team at Smartlands recently announced that they would be looking to capitalize on friendly regulation, towards tokenization, put forth by Liechtenstein.

The company states that they are looking to ‘revise and expand legal framework’.  Furthermore, they will ‘base future projects on Liechtenstein Law’.

Ilia Obraztsov, CEO of Smartlands, elaborates,

“We remain believers in crowdfunding…but dwelling on our past successes is not in Smartlands’ book. We’re excited about the possibilities the Liechtenstein Blockchain Act presents to investors and issuers in regards to direct tokenisation of any asset using blockchain tokens as containers for any assets. Armed with cutting-edge legislation for investment funds, the Liechtenstein jurisdiction is ideal for structuring basically any financial product on blockchain there may be. Liechtenstein SICAVs (or open-ended funds) are industry standard and one of the most popular types of funds in the EU. SICAVs can be used as umbrella funds for multiple sub-funds. Such structure provides an efficient and fast way to introduce new investment ideas and opportunities on blockchain in one of the most prestigious fund jurisdictions. It is possible to tokenise any assets with a dedicated sub-fund.”

Platform Alignment

News of a platform ‘realignment’ surrounding Smartlands was first divulged by the team in early 2020.  While 2019 was a year of great growth for the digital securities sector, it, unfortunately, did not live up to the expectations of many.

Looking to realize this growth, in 2020, Smartlands announced this realignment of their actions, to better serve high-net worth individuals, firm, etc. – as opposed to the retail investor.  This, however, does not mean that the company is also pivoting away completely from retail based crowdfunding.

Yaroslava Tkalich, CMO of Smartlands, states,

“Crowdfunding is a very exciting area of fundraising, particularly in the UK with the country’s dense financial markets and tight regulations. Those preconditions allow us to involve all types of retail investors in campaigns for tokenised shares in virtually any asset class.”

High Hopes

The ‘Token and TT Service Provider Act; TVTG’ or ‘Liechtenstein Blockchain Act’, which has resulted in Smartlands rethinking their strategies, was originally announced by the Liechtenstein government in mid-2018.  The framework established through its implementation, however, only recently came into effect in January 2020.

The act was specifically structured by the Liechtenstein government, to allow for expected growth in the world of blockchain.  This meant writing an Act that while broad, would still allow for appropriate protections to be put into place.

At the time of its announcement, the Liechtenstein government stated,

“Because of the rapid pace of development of blockchain technology and its areas of application, it is very important to draft a law abstractly enough to ensure that it remains applicable for subsequent technology generations. That is why the term “transaction systems based on trustworthy technologies (TT systems)” is used for blockchain systems in this law. Due to the enormous potential of blockchain as a basic technology, the Government has decided to create a legal basis for the areas of application of the token economy and not only to regulate current applications, in particular crypto-currencies or initial coin offerings (ICOs). The goal is to ensure that a new law does not have to be created for every case of application, but also to create legal certainty for the many cases which are only just beginning to emerge in practice and are likely to develop in the near future. However, the Government is leaving open the option of regulating applications close to the financial market in a further step.”

The flexibility afforded through this Act is expected to attract many companies, similar to Smartlands, throughout the coming year, as they look to tokenize basically anything and everything.  Smartlands is simply one of the first to publically announce their intent.

Smartlands

Founded in 2017, Smartlands maintains operations in London, England.  Above all, Smartlands acts as a tokenization platform, operating under the watch of the Financial Conduct Authority (FCA).

CEO, Ilia Obraztsov, currently oversees company operations.

In Other News

Beyond growth in their market approach, Smartlands has been hard at work on, not only viable consumer products, but the tokenization of real estate projects.  The following articles are examples of each of these.

Smartee Looks to Change the Way Investors Store, Use, and Access, Digital Assets

Tokenizing London Penthouses and Greek Island Villas

Spread the love
Continue Reading