There have been a plethora of ICOs completed within the last few years, which fit the definition of an STO. While some of these events were undertaken with this knowledge already in hand, many were not.
This has resulted in various well-intentioned companies now facing the music, as their past actions have come into question by regulatory bodies – primarily the SEC.
Recognizing the predicament that many companies find themselves in, the SEC has shown an inclination to forgo the penalization of offending companies. Mind you, this is providing that the companies come forth voluntarily, and work with the SEC to remedy the situation. An example of this is the recent decision by the SEC to let Gladius ‘off the hook’ for their past ICO.
Globex has decided that many of the companies involved in this situation need help, and that they can offer this to them.
Today, Globex announced the launch of their Rescission Software Solution. This is a suite of services geared towards bringing reform to ‘Non-Compliant Security Token Offerings’.
Globex breaks down their solution, into a 4 step process that will allow for the re-issuance of tokens in a regulatory compliant manner.
- Old tokens are returned in consideration for new tokens via a new smart contract
- A white-label KYC/AML app is created for issuers to onboard & re-verify investors
- New tokens are custodied by registered Transfer Agents to ensure proper control and records of investor identities and to protect the onward sale of securities
- New tokens are moved from custody to a regulated ATS for compliant secondary trading
By working with Globex to follow these steps, issuers of potentially non-compliant STOs can now rest assured that they are on the right path.
In their press release, multiple representatives from Globex took the time to comment on the developments discussed here today. The following is what each had to say on the matter.
“It was a great feeling to present what Globex has developed these past two years to a room of regulators and legislators who showed great interest in the technology built to solve for key regulatory concerns as it pertains to digital securities…We encourage issuers and law firms that are active in the digital security space to reach out to us to help come into compliance.”
“We’re already beginning to see the aftermath of the regulatory environment catching up with the explosive growth of token offerings…It’s more important than ever for issuers to look at their offerings and take actionable steps to verify compliance regarding issuance, KYC/AML, and secondary trading. We’re proud to provide issuers with a ‘compliance re-do’ button to fall back in line, do right by their investors and avoid costly enforcement from the regulators.”
Make sure to visit us again this week for an exclusive interview with Brian Collins. Here, we will learn more about Globex and their future ambitions.
In Other News
Globex has been on a mission to provide the digital securities industry with much needed solutions. In the past few months, we have seen them, not only announce new solutions to problems plaguing the sector, but announce new partnerships as well. Check out the articles below to learn a bit more about these past events undertaken by Globex.
Industry Participants Finding Footing within Evolving Digital Securities Sector
As the digital securities sector finds its footing, so too are the companies involved with its development. As a result, we have seen various hiring and shuffling among high ranking employees at a variety of companies within the sector.
While some of these moves were undertaken in an attempt to infuse operations with new talent, a variety were simply repositioning workforces to ensure employees thrive. The following are a few examples of rotating rosters this past year – some under the radar, and some high profile.
In a statement from Philip Millar, he touched on the potential of HighCastle.
“It’s very interesting to observe how the entire trading and investment industry evolves with the hype of technology and digital communications. I believe the development of blockchain-based investment marketplaces is bridging the gap between the new economy and institutions, fintech companies and their clients. I’ve recognized a huge potential in the HighCastle platform, technological and business ideas which the HighCastle founders are working to implement, and I’ve gladly taken the invitation to support and contribute to the Company’s growth.”
This was a move that flew under the radar, as Polymath saw their Cofounder, and first CEO, Trevor Koverko, step down from his role. While he remains active with the team, day-to-day operations at Polymath are now overseen by Kevin North.
Smartlands has indicated that this move was undertaken in an effort to allow Arnoldas to concentrate on strategic expansion, in addition to business development. Smartlands indicates that building on his experience as CTO, Ilia was an ideal fit for replacing Arnoldas as CEO, due to the company’s focus on technological solutions.
- Chris Eberle vacated role as COO.
Duties associated with this role have been assumed by continuing Swarm employees. While Chris Eberle remains as an advisor with Swarm, he has transitioned into a new role with Netflix.
- Kimberly Corrigan hired as Director of Distribution.
Speaking on her hiring, Kimberly Corrigan stated,
“Throughout my career, I’ve witnessed significant changes in public market infrastructure while the private markets’ infrastructure has largely remained unchanged. Joining Templum allows me to play a significant role in evolving the private markets by helping to increase exposure to alternatives through Templum’s industry leading end-to-end technology solution, which addresses a number of obstacles that both issuers and investors experience today.”
Without a doubt, this changing of the guard remains the highest profile move in recent months. Patrick Byrne was an enigmatic leader of Overstock (mother company of tZERO). His ousting was truly bizarre, as the event was surrounded by storylines involving Russian spies, and allegations of market manipulation.
Thankfully, Overstock was ripe with talent, and was able to immediately promote a competent replacement from within their ranks.
Speaking on his promotion to CEO of Overstock, Jonathan Johnson had the following to say,
“Overstock has two unique businesses…I have run both, and I know how to unlock the value in each. I’m confident we can rapidly return our retail business to profitable growth. Our transformative blockchain businesses continue to lead their respective industries by getting real products into production.”
As stated before, these are just a few examples over the past year of rotating rosters among companies within the digital securities sector. There will, no doubt, be more to come as these participants find their footing in the rapidly developing industry.
DigiMax Eyes European Expansion through Black Manta Partnership
Collaboration Agreement – DigiMax & Black Manta Capital
Two companies involved in digital securities have just announced a new partnership, which will see their expansion into Europe.
DigiMax, a Canadian based company, has partnered with German based, Black Manta Capital. This partnership was undertaken, as DigiMax looks to expand their operations into Europe. This is possible through the privilege of licensure, awarded by BaFin to Black Manta Capital a few short months ago.
Countries such as Switzerland, Malta, etc., are most likely the first to come to mind with regards to blockchain acceptance. Germany is near the front of the pack with their treatment of the technology. This is made evident by BaFin, and their open approach to innovation.
Radoslav Albrecht, CEO of BitBond, recently penned his thoughts on German Regulators, and the process involving STO approval in the nation.
Representatives from each, DigiMax and Black Manta Capital, took the time to comment on this new partnership. The following is what each had to say with regards to the move, and future expansion.
Alexander Rapatz, Managing Partner of Black Manta Capital, stated,
“Tokenization in the core financial field of securities will – for sure – bring paradigmatic change to the global financial markets. While Black Manta wants to be ‘boutique’ in its beginnings and run ‘handpicked’ STOs only, our strategy is global from day one: the first step is to link Europe and Asia on one blockchain-based investment platform. For this reason, we are excited to work with DigiMax who has already built a great global network of participants that can take advantage of our newly licensed platform.”
Chris Carl, CEO of DigiMax, stated,
“DigiMax recognizes Black Manta as one of the leading licensed service providers in Europe capable of assisting clients to raise capital and to list digital securities in Europe, starting with Germany…We respect how difficult it is to gain these approvals from the financial supervisory authorities in Europe, and to have done so represents a substantial accomplishment on the path leading toward global digitization of securities. We are excited about working with Black Manta on several such projects in the immediate future.”
Operating out of Toronto, Ontario, DigiMax is a service provider for the digital securities sector, which was launched in 2017. They are ‘exempt market dealers’, which have set out to develop a suite of services to facilitate capital generation events, such as STOs and DSOs.
CEO, Chris Carl, currently oversees company operations.
Black Manta Capital
Operating out of Luxembourg, since 2018, Black Manta Capital specializes in the development of tokenization services. These services are offered as a comprehensive platform, for use by potential token issuers looking to raise capital.
Managing Partners, Christian Platzer and Alexander Rapatz, currently oversee company operations.
The company is also the recent recipient of a BaFin issued licensure, which allows them to host STOs/DSOs.
In Other News
BaFin, the German regulatory body responsible for the approval of various blockchain related endeavours, has caught our attention on various occasions. The following are two instances of companies looking to utilize blockchain technology, which were given the greenlight by BaFin.
Fundament Group Receives Strategic Investment from Bauwens Group
Investing in the Future
Bauwens Group, a German based real estate developer, has announced that they have invested in Fundament Group.
With Fundament Group looking to change the way real estate projects are financed, through the implementation of blockchain technologies, they caught the eye of Bauwens Group. The latter has recognized the potential cost savings, and ease of access to capital, that blockchain can offer.
Real estate continues to be a popular implementation for the tokenization of assets, and the entrance of a giant developer such as Bauwens Group continues to support this.
The investment in Fundament by Bauwens is just the latest in a recent string of positive news surrounding the company.
We recently covered Fundament Group, and their approval by BaFin, for an upcoming STO involving German real estate. The following article discusses this in greater detail.
Upon making their announcement, Alexander Jacobi, Managing Director at Bauwens, took the time to comment on the investment. The following is what he had to say on the matter.
“We are delighted to announce this partnership with Fundament Group which recently achieved a decisive breakthrough in Germany by securing the first regulated tokenized real estate bond. The Fundament Real Estate Token is an extremely interesting option for selling our real estate and we are proud to support them with our real estate and digitization expertise. By partnering with Fundament Group, Bauwens is positioning itself sustainably in the emerging real estate tokenization market.”
One of the reasons that Germany has started to become popular for developments, such as the one discussed here today, is clarity afforded to industry participants by their regulators. The following article takes a look at some of the steps necessary for getting regulatory approval for a German based STO.
This Berlin, Germany, based company was founded in 2018. Since launch, the team at Fundament Group have worked to create a comprehensive platform tailored towards the tokenisation of assets, such as real estate.
CEO, Thomas Ermel, currently oversees company operations.
With almost 400 employees, and billions worth of real estate under their management, Bauwens Group represents one of the largest real estate developers in Germany. The company has grown to such stature since their founding almost 150 years ago in 1873.
In Other News
To date, Germany has continued to be one of the more forward thinking countries with regards to digital securities. This has been made apparent through parties from various sectors showing interest in blockchain. This includes, not only real estate, but big banks as well, with the following articles demonstrating this.