The Australian-based security token issuance and trading platform First Growth Funds Ltd continues to see momentum following this week’s announcement that the company had successfully secured a US$250,000 investment from GlobexUS Holdings Corp. First Growth’s shares saw a thirty-percent increase directly following the news. This growth demonstrates the rising level of interest surrounding blockchain-based securities., particularly in the Australian market.
First Growth Funds Ltd (ASX:FGF)
First Growth Funds Ltd offers shareholders the ability to invest in multiple asset classes. These classes include Pre-IPO, Private equity, blockchain, and cryptocurrencies. Additionally, the firm invests in large-cap listed companies. The firm’s straight-forward investment strategy is another reason for the funds growing success.
Aside from securing funding, First Growth formed strategic partnerships with a number of important players in the industry. Prior to this funding, the company signed a dealer agreement with TriPoint. The deal opens the doors for Australian startups to secure capital from American investors. Speaking on the deal, the company’s executive chairman, Anoosh Manzoori discussed the importance of opening up local businesses to new market capital.
Additionally, Manzoori touched upon the impact of tokenization across the market. He explained how tokenization allows firms to gain liquidity of illiquid assets. The ability to open up new investment markets continues to interest exchanges from across the globe. This has led to a flood of new platforms entering the market in an attempt to better their positioning prior to full-scale adoption.
Anoosh Manzoori via Linkedin
Security tokens are ideal for tokenization for many reasons. First off, security tokens can have regulatory requirements programmed directly into their smart contracts. This strategy enables the tokenization of highly regulated assets such as securities and real estate.First Growth Funds wants to bring tokenization to the forefront of the market.
By providing major investment firms a regulated point of entry into the market, First Growth seeks to bridge the gap between traditional and blockchain-based investment strategies. The move would place the group as an industry leader in the Australian market.
Australian Crypto Markets
Australia legalized crypto in 2017. The country passed legislation that placed Bitcoin and other similar cryptos in the same category as property for taxing purposes. The move stopped crypto investors from being double taxed and moved digital assets into the capital gains tax bracket.
In 2018, the Australian Transaction Reports and Analysis Centre (AUSTRAC) announced new crypto legislation. AUSTRAC’s new crypto regulations require exchanges operating in the country to implement KYC and AML/CFT reporting. Additionally, exchanges are required to maintain records on their transactions and users. Also, the legislation made it illegal for unregistered exchanges to operate. Unregistered exchanges now face stiff fines, penalties, and jail time.
First Growth Funds Future
When you consider that Australia is a crypto hotbed, First Growth Funds made the right decision to cater to the local markets. Opening up global investment capital for blockchain-based startups continues to be a smart strategy. You can expect this firm to see excellent growth over the coming months as news of their platform spreads throughout the market.
David Hamilton is a full-time journalist and a long-time bitcoinist. He specializes in writing articles on the blockchain. His articles have been published in multiple bitcoin publications including Bitcoinlightning.com