DX.Exchange and Perlin to Usher in ‘Bottom Billion’
When DX.Exchange first launched, many were skeptical on the viability of their plan to tokenize ‘blue chip’ stocks. After avoiding a potentially disastrous platform breach in their first week, the young exchange has successfully delivered on their promise.
One of the driving factors for structuring their exchange in such a way, was their recognition of a global inaccessibility to stocks. While investing in stocks is commonplace in North America, the world’s greatest population pockets in India do not take part. A large reason for the low participation rate is that many stocks such as Apple, Amazon, Tesla, and more, are financially out of reach. By tokenizing these stocks, and opening up fractionalized ownership, DX.Exchange is able to tap into a subset of the global population that was previously unreachable.
To aid in this endeavour, the exchange has recently announced a strategic partnership with blockchain company, Perlin. Based out of Singapore, Perlin is entrenched in the Asian financial markets. By partnering with DX.Exchange, they are able to bring new found exposure to the exchange through their own client base, in addition to knowledge on new regions.
Together, these companies have the ability to each achieve their goals faster than before. If these goals are achieved, they will have been successful in opening the doors to stock markets for the ‘bottom billion’.
In their press release, the CEO of each company took the time to comment on the partnership. Here is what they had to say about working together.
Dorjee Sun, CEO of Perlin, stated,
“Perlin is already actively working to create greater economic inclusion by providing a new stream of passive income for users on our distributed cloud platform in struggling communities around the world…We will further disrupt the status quo by aggressively leveraging our established networks in India, Indonesia and other emerging economies to support greater user adoption for DX Exchange – including by letting Perlin users to directly trade tokenized stocks on their ground-breaking platform.”
Daniel Skowronski, CEO of DX.Exchange, stated,
“We are incredibly excited to be collaborating with Perlin with its experienced business team, world-leading crew of developers, and disruptive distributed technology…Their mission to empower struggling communities globally lines up perfectly with our own mission to open up both traditional equity and emerging digital asset markets to people everywhere regardless of their socio-economic circumstances. Together DX Exchange and Perlin can trade the untradeable.”
Perlin identifies primarily as a ‘practical, trustless and decentralized cloud computing marketplace’.
The company maintains operations in New York, Singapore, Hong Kong, and Sydney. Operations are overseen by the following group of founders:
DX.Exchange is an Estonian company that was founded in 2018. Through multiple licences under the Estonian Financial Intelligence Unit, the company is able to offer the services of an online exchange.
Upon launch of their trading platform, the exchange caught the attention of the industry, due to its decision to tokenize publically traded stocks via proxy security tokens.
The exchange utilizes technology offered by NASDAQ, known as their ‘Matching Engine’. This allows for a variety of services to be offered – after hours trading, etc.
In Other News
Recent days have seen various positive developments in the digital securities sector. Not only are there large real estate projects popping up, but regulations are becoming clearer. Here are a few articles detailing positive developments of late.
Vertalo Releases V-Token Software for Usage during Tokenization
Vertalo, the cap-table company making waves in blockchain, has announced the release of its ‘V-Token’ software.
This software, V-Token, is a described by Vertalo as a ‘placeholder’, which will allow for issuers to issue digital securities at a later point in the issuance cycle. Until now, this software has only been available to Vertalo. For those interested, access to V-Token is now open to all token issuers.
The purpose of V-Token is to make life easier for potential issuers of digital securities. As it stands, one of the larger hurdles in the space remains the cost associated with the creation of said tokens. The issue is amplified by the fact that this step often takes place prior to a company raising any capital – meaning the company had best be sure that their capital raise is successful, and their token creation wasn’t done in vain.
With this in mind, Vertalo created V-Token for their own usage in 2018. V-Token allows for token creation to occur POST-raise. In doing so, this form of delayed tokenization provides issuers with greater flexibility in their operations.
This token is structured as ERC-20 compliant, while offering various traits, vital to digital securities. This includes trade restrictions, and other measure necessary to be compliant with regulations.
Along with their announcing the availability of V-Token, Dave Hendricks, CEO of Vertalo, took the time to comment. The following is what he had to say on the matter.
“The current high cost of tokenization is the main impediment to widespread adoption and roll out of digital assets. Today, Issuers who are interested in digital approaches are being asked to spend hundreds of thousands of dollars to design and produce tokens before they have successfully raised capital. The unit economics need to change.”
“Free Tokenization is a logical next step in the evolution of the digital asset industry. But as we have seen with previous protocol standards like Ethernet and TCP/IP, it’s difficult to monetize the standards themselves. The role of tokens is naturally subordinate to actually raising capital. It’s been amply demonstrated that investors don’t invest in tokens, or in token standards, rather they invest in companies, assets, access to liquidity, and revenue streams. Free token issuance reduces the risk and complexity of tokenizing assets. Delaying the choice of which security token standard to use until the infrastructure is more fully developed lowers the cost and risk of token implementation.”
Vertalo is a United States based company, which was founded in 2017. Above all, Vertalo functions as a capitalization table specialist, while providing services for investor onboarding and compliance adherence.
Company operations are overseen by CEO, Dave Hendricks. We had the pleasure of interviewing Dave Hendricks earlier this year. Check out this discussion to learn more about Vertalo and their goals.
In Other News
Vertalo has found themselves a mainstay in our newsfeed over the past few months. Whether providing services which facilitate the completion on an STO, or forming partnerships to advance the industry, Vertalo keeps busy. Here are a few articles detailing what they have been up to lately.
TokenOro to Offer Security Tokens backed by Gold and Mining Operations
Gold Goes Digital
TokenORO has gone live with their token offering. This event, which is aimed towards changing the way small miners raise capital, will see the sale and distribution of security tokens known as ‘ORO’.
This process allows for investors to gain exposure to the gold mining industry, while providing small miners with a more efficient means of raising the capital necessary to grow operations. TokenOro described their missions in 3 main steps.
- Create a financing structure, to stimulate small-company mining, through the use of blockchain technology.
- Produce a ‘gold stream’ through mining operations.
- Establish a ‘vault’, comprised of gold-assets.
To successfully host an STO, TokenOro turned to WORBLI. This Singaporean company will provide the services and structuring necessary to ensure the STO is completed in full compliance with regulations.
This event was originally announced by TokenORO and WORBLI back in January 2019, with the proceedings now going live.
What makes this token unique, is how proceeds from the STO will be allocated. Unlike most tokens, which are pegged to a sole form of asset, this will be broken down as follows
- 50% of proceeds go towards purchase of gold, for stable backing of the token
- 50% of proceeds go towards mining endeavours
While investments are divvied up, every action is taken with the goal of increasing holdings of the ‘vault’. With tokens representing fractionalized ownership of the vault, its growth represents an increase in token value. This means that whether the vault is grown through mining operations, or direct deposits through investment, investors benefit through increased token value.
Representatives from each, TokenOro and WORBLI, took the time to comment on these developments. The following is was each had to say on the matter.
James McKenzie, Chairman of TokenORO, stated,
“TokenOro is attempting to provide a token that will fundamentally disrupt an industry in a positive way…We’re offering preferred shares of our equity in the form of a digital token, one that is typically only accessible to specific groups. This could begin the long-awaited disintermediation of traditional financial gold oligopolies. TokenOro is looking for prospects that might have a defined resource of up to 10 million ounces of gold, whilst meeting NI43-101 or JORC reporting standards.”
Domenic Thomas, CEO of WORBLI, stated,
“WORBLI is dedicated to empowering businesses like TokenOro, one of many innovative blockchain projects that WORBLI is working with to bring new opportunities to the public. Individuals are traditionally limited to products like exchange based stock trading, mutual funds, and employer-issued retirement accounts. WORBLI is engaging businesses like TokenOro to bring a wider range of financial opportunities to users.”
Based out of Oregon, TokenOro is a mining company looking to rid their industry of inefficiencies. Their goals have led them towards blockchain, as they look to both finance future endeavours, while providing industry players with a platform to efficiently operate.
Company operations are overseen by Chairman, James McKenzie.
WORBLI is a software company based in Singapore. The company launched in 2017, and has set forth with a goal of utilizing blockchain to usher in the next age of finance. They describe this vision as ‘a day in the near future, whereby everybody is able to pay for a product or service in any currency or cryptocurrency of their choice’ – a simple, but significant task.
Company operations are overseen by CEO, Domenic Thomas.
In Other News
While this token is unique in its structuring, it does retain some semblance of a stablecoin. Stablecoins have become increasingly popular among those within the digital securities sector. Here are a couple of articles touching on the development of stablecoins, and their adoption within the industry.
Smartlands to Tokenise Nottingham Real Estate through STO
After months of platform development, Smartlands is ready to build off of past successes. This young company has just announced the launch of their inaugural security token offering.
Taking place through their Stellar based platform, Smartlands will facilitate the tokenization of shares representing fractionalized ownership of a 124 unit real estate development, purpose built as student housing.
While Smartlands is facilitating this security token offering, the event is a product of Shojin Property Partners – A real estate development and investment firm. Shojin Property Partners completed construction of this complex in 2018, and soon after began filling it with residents.
Now, with the help of Smartlands, Shojin hopes to offer investors a new type of opportunity through the use of security tokens.
Details of the Deal
This deal is providing investors with exposure to revenue, garnered from 32 Russell Street, Nottingham, United Kingdom. With Nottingham playing home to multiple universities, it is expected that these units will be in high demand.
While figures may vary, it is forecasted that investors in this project will receive the following benefits.
– Average dividend yield of approximately 5.74% per annum
– Return of 15.72% per annum including capital growth
For those interested in this opportunity, participation is open to retail investors, with a minimum 500 GBP investment.
In their announcement, Ilya Obraztsov, VP of Technology at Smartlands, took the time to comment. The following is what he had to say.
“At Smartlands we’re rethinking traditional finance models by building a global ecosystem that democratizes access to alternative investments and opens opportunities to higher-yield projects. By connecting blockchain and the real economy, we create new opportunities for retail investors to participate in institutional-grade deals with a much lower buy-in threshold. And we have our first STO to show for our efforts…The student complex in Nottingham is the first tokenized property in the UK, to be followed with new offerings of blockchain-based securities backed by assets in real estate and other markets.”
Smartlands is a U.K company, headquartered in London. The company was launched in 2017, and has since strived to develop solutions geared towards crowdfunding. This has led to the adoption of blockchain technology, and now security tokens.
Company operations are overseen by CEO, Arnoldas Nauseda.
Shojin Property Partners
Shojin Property Partners are a London based company, which was founded in 2009. Above all, they create investment opportunities through the development of various real estate projects, such as the one described here today.
Shojin Property Partners was acquired by Smartlands in early 2019
In Other News
We have detailed Smartlands multiple times over the past few months. Whether discussing acquisitions, or developmental choices, Smartlands has come a long way in this time. The following are a couple of articles discussing these events.
- Security Token Standards – Factom Asset Token- FAT May 23, 2019
- Vertalo Releases V-Token Software for Usage during Tokenization May 23, 2019
- TokenOro to Offer Security Tokens backed by Gold and Mining Operations May 22, 2019
- Smartlands to Tokenise Nottingham Real Estate through STO May 20, 2019
- PCF Capital to Host $250 milllion DSO through KoreConX May 19, 2019