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Digital Securities Sector Continues Development, As Spotlight Shines on Cryptocurrencies

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As of late, a spotlight has been put on cryptocurrencies like Bitcoin, Ethereum, Litecoin, etcetera – and for good reason.  These assets boast the potential to change the way we transact and store value, and institutions are beginning to realize it.  While this has been occurring though, development of the digital securities sector has continued.

The following are a few recent examples of progress being made within the sector, providing a glimpse into the future of an asset class laden with potential.

Dedicated Offerings

With the ICO craze well behind us, various companies are now focusing their efforts on facilitating digital securities offerings (sometimes referred to as Security Token Offerings).  This is being done through the release of upgraded blockchains, with new capabilities to support such tokens.

Two examples of this come from industry mainstays, which have weathered the markets ups and downs for years now – Stratis and NEM.

Stratis – STRAX

After years of using its STRAT tokens, these were recently supplanted by STRAX when U.K. based Stratis developed and launched its new blockchain of the same name.  Part of this decision was to adapt to a changing industry, focused less on the ICOs of past, and more on DeFi and new means of regulated fundraising like digital securities.

Shortly after STRAX was deployed, the company stayed true with its roadmap, announcing its new STO platform built to run on the new blockchain.

The company states, “Stratis is all too aware of the benefits associated with blockchain-based crowd-funding, especially STOs and the power of digitizing non-fungible assets…Stratis has built and incorporated features necessary to gain approval from regulatory bodies in the United States through its partners’ progress with the Securities and Exchange Commission.”

To learn more about this STO platform, and its source code, click HERE.

NEM – Symbol

Although announced earlier than STRAX, the new Symbol blockchain by NEM is slightly behind in its launch.  Those anticipating Symbol and its new functions needn’t wait much longer though, as main-net launch is scheduled for January 14th, 2021.

The Symbol blockchain was built specifically with enterprises in mind, with the following functionalities noted as being supported.

  • Hybrid chain (can be deployed as either public or private)
  • Cross chain swaps (including ETH, BTC, and more)
  • On-chain multi sig smart contracts
  • ‘protocol-level’ support for digital securities

Upon launch, Symbol is scheduled for immediate adoption with a partnership between Wave Financial and NEM having been announced already.  This will see the issuance digital securities representing ownership in the Kentucky Whiskey Fund on Symbol.

For existing holders of XEM which believe in the potential of Symbol, have the ability to participate in an airdrop on a 1:1 basis for the upcoming XYM tokens.  To learn more about how to take part in this event, click HERE.

Symbol from NEM – Brand Introduction

Atlas One Digital Securities

Despite certain companies disappearing from the sector, there are still those looking make a splash within digital securities.  One such example is British Columbia based Atlas One – a FinTech firm focused on serving capital markets through the use of digital securities.

As the company gears up for its launch, it recently announced that the Canadian Securities Authority (CSA), has granted it status as an ‘Exempt Market Dealer’.  By being granted this status, it allows Atlas One greater flexibility in its operations, as it can now sell securities without a prospectus.

Atlas One Digital Securities - Technology Driven Private Capital Markets

Archax

As one of the most anticipated digital securities exchanges, Archax has continued to work hard as its launch nears.  This work includes not only rounding out its team, but developing initiatives for promotion to issuers once its platform has gone live.

A recent example of a forward thinking initiative to be utilized upon launch by Archax, is a partnership with MOSS – a leading digital carbon offsetting platform.

Archax CEO, Graham Rodford states, “Archax is a digitally native exchange which has been built with the ESG principles of sustainability and inclusivity throughout. We are keen not only to offset our own carbon usage, but to measure the ESG rating of all the issuances that are admitted to our exchange, as well as provide them with easy access to trade carbon tokens to offset their own carbon usage too. We are extremely pleased to be working with MOSS to help facilitate this and look forward to having their carbon tokens trade on our regulated marketplace.”

Moving forward, operations at Archax will be overseen by Richard Spade.  The seasoned executive was recently awarded the role of ‘Head of Operations’ at Archax, and looks to leverage his experience to ensure a successful platform launch.

Neufund

One of the first platforms to successfully host multiple digital securities offerings on its platform was none other than Neufund.  As such, it was disheartening months ago when news broke that the platform was essentially shutting down is support for digital securities due to new regulatory requirements being enforced within Europe.

Thankfully, new and existing investors have come to the rescue of Neufund, with a fresh investment of €4 million.  Those which participated in this round included,

  • Atlantic Labs
  • Udo Schloemer
  • Freigeist Capital
  • Dario Suter

Neufund indicates that its new goal is to re-establish itself has a pillar within digital securities, which will begin by obtaining the appropriate financial licensure to move forward.  Furthermore, Neufund intends to revamp its services to include a more ‘human’ element, rather than strive for a purely automated platform.  The purpose of which is to be much more user-friendly, in hopes of attracting new business.

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.

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