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GSR Capital turns to tZERO for the tokenization of ‘Cobalt’

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GSR Capital turns to tZERO for the tokenization of 'Cobalt'

Tokenized Cobalt

Adoption of security tokens is ramping up. Digital security focused platform, tZERO, has announced that their services have been requested by GSR Capital. This will entail the tokenization of Cobalt.

This metal is most commonly used in various electronics and power supplies, and is in high demand. For instance, use of cobalt in electric vehicles, use of this metal will continually rise in the coming years. For instance, $200 million worth of cobalt is expected to be tokenized in 2019, with even greater amounts in 2020. This will occur due to the automotive industry’s shift away from combustion engines, to their electric counterparts.

Continued intermingling between these companies is of note.  For instance, they have indicated in the past that they want to eventually release a security trading platform. However, before that can be done, the duo are working to develop an ecosystem throughout Asia supporting tokenization.

The continued success of tZERO in all of their endeavours including the tZERO STO exchange, will no doubt usher in more digital security services in the future.

Previous Dealings

These are not the first dealings that GSR Capital and Overstock have had in recent months. The two companies made news in mid-2018.  At that time, GSR Capital announced that it would be investing $404 million into Overstock.

This has been put on hold however.  This took place as GSR requested an extension for the integration of another partner. In a recent statement, it was clear that Byrne was unenthused over events that led to this situation.  Above all, he subtly indicated doubt on the delivery of investment.

Byrne commented, “Despite our concerns (which no doubt you share), we have decided to grant GSR the time requested to onboard this additional partner (who we think will in fact be a highly valuable participant in the ecosystem). Additionally, in a display of commitment to our partnership, GSR has signed a retainer agreement with tZERO to ensure the cobalt offering is not delayed by this extension on the GSR investment. While we are appreciative of GSR’s commitment and excited about the opportunity in cobalt offering, we do acknowledge to you our shareholders that one should not assume the arrival of GSR’s investment until it arrives.”

GSR Capital

GSR Capital was founded in 2004, and is based out of Hong Kong. They are an investment firm that has shown quite the affinity towards the blockchain industry throughout 2018.

Commenting on the request for cobalt tokenization was GSR Capital founder, Sonny Wu. He stated, “GSR Capital and our partners are pushing forward with our plans to create a first-of-its-kind cobalt offering in 2019…We are proud to partner with tZERO for this token offering and believe that their leadership in this space will benefit our shared global outreach. GSR and our partner will be doing more than just cobalt tokenization, and we see further growth in our partnership with tZERO including consummating an investment directly by next quarter.”

tZERO

tZERO is based out of New York, and is a subsidiary of Overstock.com. Each are products of Patrick Byrne, who has recently noted that he will be increasing his focus on the development of tZERO. This subsidiary acts as a platform to facilitate various services aimed towards security tokens.

Patrick Byrne spoke on the new cobalt agreement with GSR. He stated, “We are excited to work with GSR and their partner on this innovative cobalt token offering…Smart contract automation of these transactions will significantly reduce overall costs while effectively improving transparency in rare earth metals purchases throughout the supply chain process. We look forward to bringing the future of commodities purchasing to the global marketplace.”

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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.

Security Token News

Vertalo Releases V-Token Software for Usage during Tokenization

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Vertalo Releases V-Token Software for Usage during Tokenization

V-Token

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.

Use Case

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.

Commentary

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.”

He continued,

“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

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.

Interview Series – Dave Hendricks, CEO of Vertalo

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.

Vertalo to Provide Vital Services to seriesOne

Entoro and Vertalo to Fuse Services to Advance Digital Securities

Vertalo Announces Launch of ‘Lifecycle Management Platform’

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Security Token News

TokenOro to Offer Security Tokens backed by Gold and Mining Operations

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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.

  1. Create a financing structure, to stimulate small-company mining, through the use of blockchain technology.
  2. Produce a ‘gold stream’ through mining operations.
  3. 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.

Allocation

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.

Commentary

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.”

TokenOro

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

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.

Stablecoins within Digital Securities

Alprockz turns to Fusion for a Jumpstart on Adoption of RKZ Stablecoin

Will Facebook Launch a Stablecoin

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Security Token News

Smartlands to Tokenise Nottingham Real Estate through STO

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Smartlands to Tokenise Nottingham Real Estate through STO

Inaugural 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.

Smartlands to Tokenise Nottingham Real Estate through STO

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 investoSmartlands to Tokenise Nottingham Real Estate through STOrs 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.

Commentary

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

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.

Smartlands Releases Stellar Powered Wallet Supporting Security Tokens

Smartlands Acquisition Opens New Doors for Crowdfunding

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