Digital Securities – Recent Developments and Updates

Willingness among retail and institutional investors to consider the benefits of digital securities and the tokenization of real-world assets (RWA) continues to grow.  This was highlighted over the past week, with various examples of forward momentum being shared by industry participants.  Here is a brief look at what these entailed.

Casper Labs to Tokenize Equity through INX

Blockchain-based platform and digital securities specialists, INX Limited, announced its plan to tokenize and list the equity of enterprise blockchain services provider, Casper Labs. This collaboration will leverage INX's tech stack and take place atop the Ethereum network.

Bob Ejodame, VP of Capital Markets at INX states,

“From the moment we started speaking with Casper Labs, it was clear that tokenizing its equity and giving shareholders access to global liquidity through the INX Securities ATS exchange would be a watershed moment for the blockchain industry…INX is proud to list a layer-1 blockchain and enterprise technology provider that is extremely well positioned to capitalize on huge market opportunities including blockchain and AI.”

This tokenization is expected to provide improved liquidity by opening new avenues of access to Casper Labs' equity.  As such, it also becomes the latest example of INX's technology being used to transform traditional investing by offering easier access to shares of private companies via blockchain.  The listing process is expected to take place in September 2023.

Polymesh Reports on the Status of Digital Securities in Asia Pacific

Polymesh recently released a report detailing significant global regulatory changes in the digital assets sector, with a focus on the Asia Pacific region. Polymesh noted that, while the U.S. SEC's stance could suppress market catalysts, regions around the world such as the EU, South Korea, Singapore, and Hong Kong are each making progress with new regulatory measures.

Polymesh states that,

“Regulators across South Korea, Singapore, and Hong Kong have all begun to craft rules for new asset categories—albeit nuanced by terminology such as ‘digital asset', ‘digital payment tokens', and ‘virtual assets'—with a focus on balancing consumer protection, market integrity, and industry development. It’s a clear sign that the industry sees the promise of blockchain as much as it sees the potential dangers.”

The report suggests that the liberalization of this sector could address issues in regional property markets through the use of security tokens for real estate capital raising.

Nasdaq Highlights Adoption of Post-Trade Settlement Tech Q2 Overview

Despite a delay in the launch of its digital asset custodial platform, Nasdaq is maintaining its commitment to digital assets.  This was highlighted in a recent look at the company's performance in Q2, as it shared multiple examples of real-world adoption of its post-trade settlement tech.  These included,

• Depósito Central de Valores (DCV)
• Brasil, Bolsa, Balcão (B3)

We recently noted that “this was particularly notable in the case of DCV, as the adoption was done to facilitate both the issuance and settlement of digital securities”.

With its continued focus on blockchain, Nasdaq has made clear that it believes in the potential for the technology to streamline and secure securities transactions.

Climate Integrates Vertalo to Facilitate Capital Generation Among Renewable Energy Projects

Climatize Earth Securities, or ‘Climatize', has recently established a partnership with Vertalo that will see the “democratization, and digitization” of investments in climate-focused projects.  The company highlights what this looks like with its recent, successful, raise that saw the BrightSun Low-Income Community Solar project raise $505,000 in one month.

Will Wiseman, CEO of Climatize states,

“With Climatize, we can finally put the power to shape our energy future into the hands of the people who need it most: the public. With the launch of Climatize we're entering a new chapter, one in which the public can now be an active stakeholder in the renewable energy transition. Whether you're a community leader, a climate activist, or simply someone who cares about the future of our planet, you now have greater access to the tools to take action. Climatize has provided the platform that allows individuals to contribute to projects that align with their values by investing it transparently into renewable energy projects. Now the future is ours to choose”

The partnership, which aims to foster environmentally conscious projects, and contribute to a sustainable future will see Vertalo's platform utilized as a space for easier capital generation.