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Harbor’s New Platform Allows Issuer to Customize Token Protocols

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Harbor’s New Platform Allows Issuer to Customize Token Protocols

Security token issuance and management platform provider Harbor announced a major new iteration of its platform this week on its Medium blog. The first version of Harbor’s platform was available only as a managed service. The new version, dubbed ‘Harbor Platform 2.0,’ features a dashboard that token issuers can use to customize investor management and liquidity protocol settings.

Harbor claims that Harbor Platform 2.0 will provide fast-growing startups a way to raise funds directly from investors without having to go through intermediaries. Harbor Platform 2.0 is designed to give the security token issuer control over their cap table, including the ability to unlock liquidity to select groups of investors.

Harbor CEO Josh Stein said, “Startups want new ways to raise capital directly from investors, not only through intermediaries. They want to open up fundraising to a broader network including customers, partners, and fans who are key to their success, while still being in control of their cap table. Harbor Platform 2.0 is a turnkey solution for tokenizing private company equity that enables startups to open up fundraising directly to a broader group of investors and create innovative equity programs. Harbor allows companies to create liquidity options under controlled conditions and limit trading among trusted parties. Startups can now create more liquid, yet controlled, equity programs for key external stakeholders, not just employees.”

Harbor described several Platform 2.0 use case examples in the announcement, all based on conversations with prospective clients. The examples show how a startup can leverage its client base to attract additional funding at a lower cost than it would incur otherwise.

One example involves sports franchises looking to raise fresh capital: “Sports and esports teams can drive fan engagement by allowing them to become minority owners. Fan equity programs can include dividend-generating ownership without control provisions, and instead bundle in unique owner benefits such as private meetings with players, unique merchandise, and special ticket offers.”

Harbor Platform 2.0 features an issuer dashboard with real-time cap table details, an issuer-branded investor portal, and partially-automated investor onboarding and verification functionalities. A module dubbed ‘Trusted Parties’ manages smart contract compliance protocols to enforce rules and exemptions on security token trading and transfers.

Arisa Amano, Harbor’s chief product officer, noted that Harbor Platform 2.0 allows startups to lock up capital without locking in investors. Amano said, “Some companies and funds want to closely control their cap table, but also unlock liquidity among a closed network of investors. The ability to restrict liquidity among trusted parties is only possible with a solution like Harbor that tracks the real-world identity of buyers and sellers. As a result, companies can allow selected investors to trade in and out according to rules they set, above and beyond compliance with securities laws. A real-time issuer dashboard provides startups complete visibility and control over changes in ownership.”

Harbor Platform 2.0 includes APIs that can connect with a company’s existing infrastructure for electronic signatures, accreditation checks, and KYC/AML. Harbor partner BitGo provides the Harbor Platform 2.0 with BitGo Custody and BitGo multi-signature wallets.

Harbor is backed several Bay Area venture capital funds including Andreessen Horowitz, Craft Ventures, Founders Fund, and Pantera Capital.

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Jay Derenthal is a leading cryptocurrency and blockchain writer. He has extensive business development and growth hacking experience, with a particular interest in the tokenization of assets into tradable securities. Jay uses market research to align his reporting with the most exciting trends in the fast-evolving security token news arena.

Issuers

GreyP Scores with NeuFund STO – Black One Entertainment On Deck

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GreyP Scores with NeuFund STO - Black One Entertainment On Deck

Mission Successful

On a positive note, issuance platform, NeuFund, has announced the successful completion of a marquee STO being held by GreyP on their platform.

While never intended to be a financially large scale STO, the event was important, as it demonstrated the effectiveness and potential for digital securities to change the way smaller, private companies raise capital.

Just prior to the launch of the STO, we detailed the events which made it possible. In the following article you can learn more about the clearance given to NeuFund by the FMA, and what it means for the platform, moving forward.

NeuFund Preps for GREYP Token Sale upon FMA Clearance

Due, in large part, to their successes, NeuFund continues to see strong growth in their client base. The company indicates that their platform investor pool now totals great than 11 thousand individuals. This growth should result in a snowball effect, as issuers are attracted to the platform due to the scope of investors. More STOs will then draw in more investors – and the cycle continues.

Details of the Raise

With regards to the GreyP STO, there were various positive figures that came out of the events. The following are a few of the details surrounding participation:

  • 1017 participating investors
    • Hailing from 34 different countries
  • €4million raised
    • Represents 179% of the target cap

https://youtu.be/LhK9fSvyNm0

Commentary

This early in the developmental stage of the digital securities sector, any successful STO is an important feat. With every positive and negative experience, industry participants can adapt and grow. Recognizing the importance of the GreyP STO, Zoe Adamovicz took the time to comment by stating,

“It’s an exciting day for Neufund and huge step forward for the security tokens industry at large. We have proven that private companies can effectively utilize blockchain IPOs, whilst lowering the barrier to entry for retail investors. Neufund is the future of stock exchanges.”

Speaking with Zoe

Earlier this year, we were able to complete an exclusive interview with the CEO of Neufund – Zoe Adamovicz. In this discussion, we learn more about NeuFund, themselves, as well as the views of Adamovicz herself.

“Blockchain is one of the greatest opportunities we’ve been presented with in modern history. Decentralization is ultimately about equalizing opportunities, so a young entrepreneur from the third world receives the same access as a wealthy investor. Building solutions that perpetuate the mistakes of existing markets solely for the purpose of increasing revenues is not enough. We, as a Blockchain community, can and should do better.”

Interview Series – Zoe Adamovicz, CEO of NeuFund

GreyP

Operating out of Croatia, GreyP is a tech company, which was founded in 2013. Above all, the team behind GreyP is working to redefine ‘smart mobility’. This technology has led the company to utilize e-bikes as a development platform.

CEO, Mate Rimac, currently oversees company operations.

NeuFund

Maintaining headquarters in Berlin, Germany, NeuFund is a popular digital securities issuance platform, which was founded in 2016.

CEO, Zoe Adamovicz, currently oversees company operations.

In Other News

NeuFund has also announced their follow-up to the successful GreyP event. This will see Black One Entertainment look to repeat this success in early 2020. While a firm date has not been announced for this STO, more information can be found in the company’s pitch deck, HERE.

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Aaron Kaplan, CEO of Prometheum – Interview Series

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Aaron Kaplan, CEO of Prometheum - Interview Series

Prior to Prometheum you were the Founder of EquityArcade, a platform that enabled consumers to buy shares in video game startups. Can you let us know how your experience at EquityArcade transitioned over to Prometheum?

EquityArcade was a Reg CF equity crowdfunding platform that allowed consumers (investors) to invest in the future revenue generated from indie game funded on the platform. Reg CF is part of the JOBS Act, which also contains the Reg A+ crowdfunding rules. Prometheum uses Reg A+ as a means to allow the general public to invest in blockchain securities. All JOBS Act regulations relate to online equity crowdfunding. As a result, we have been able to leverage many of the experiences and lessons from EquityArcade in building Prometheum’s Reg A+ offering platform. 

 

Prometheum enables companies to raise capital by offering their own Smart Security Tokens (SSTs). Can you share with us how SSTs differentiate themselves from other industry standards such as STOs (Security Token Offerings) or DSOs (Digital Security Offerings)?

SSTs, STOs and DSOs are all different protocols that are attempting to solve the same problem. Until there’s complete regulatory clarity around certain critical components – including custody –  of the blockchain securities ecosystem, it’s not possible to conclude which protocol provides the best foundation.

 

What’s the process for a company to launch an SST?

An issuer looking to issue a SST will submit an application for an offering to Prometheum. At that point, the issuer will submit all relevant documents that will allow Prometheum to conduct the requisite due diligence in order to determine whether the company is qualified to issue an SST. Upon passing the due diligence process, the issuer will complete the Reg A+ offering circular and submit that document to the SEC for qualification. Once qualified by the SEC, the offering will be listed on Prometheum’s offering platform and begin their capital formation activities. When the stated amount of capital is raised, there will be a closing and distribution of the SST into the investors’ Prometheum brokerage account. Upon distribution of an SST, Prometheum’s issuance platform coordinates the multi-signature, multi-stage process that is used to place investors’ SSTs in either their Master or Personal Wallet. Once the distribution occurs, Prometheum will list the SST on our retail based (i.e. open to all investors) Alternative Trading System (ATS), and secondary market trading will begin in the issuer’s SST. 

 

What type of fees should companies expect from launching an SST and hosting it on your platform?

Our goal is to allow companies to raise up to $50m in the most efficient way possible:  faster, less expensive, and easier than any other legal capital raising method. In terms of direct fees, we plan on charging issuers a small percentage of the total amount they raise (1-3% dependent on the total raised).  Once a token has been distributed and is trading on the ATS, companies are charged a quarterly membership fee of $2,500 for maintaining their order book.

Indirect fees not charged by Prometheum can vary and are related to legal and prep for the creation of the Reg A documents, accounting, auditing, marketing, and other possible professional services.  

    

SST will be Reg A+ issued. For investors who are not familiar with this legislation and what does it mean? Could you explain the benefits?

Regulation A+ allows issuers to raise up to $50 million from the general public annually, and such securities, when issued, are freely tradeable on a secondary market. Reg A+ is really the perfect regulation for issuing blockchain securities as it meets the spirit that was initially conceived by the crypto community- it allows the general public to invest, and the asset is freely tradeable upon distribution but in a regulated manner (unlike many historical token investments). 

 

Tokens that are created on your platform will then be tradeable on a custom ATS (Alternative Trading System). Could you elaborate on how your ATS will operate?

On the surface, the ATS operates just like a traditional equities electronic market.  Every token has as order book representing supply and demand for that token – bids (what buyers are willing to pay, and the number of tokens they want) and asks (offers to sell, or what sellers are willing to sell for, and the number of tokens they want to sell). This order book is managed by the matching engine which uses an algorithm to arrange the bids and asks into a price, upon the price quote the engine then utilizes time priority, and ultimately “matches” buyers and sellers when they meet at the same price.  There is an online trading platform, similar to Etrade or Schwabb, which allows traders and investors to see the order book, look at charts, enter orders and see their account status and previous transactions. Through the use of omnibus accounts, other broker-dealers will be able to offer their customers access to SSTs. Our ATS intends to operate 2 sessions everyday, both 11 ½ hours long with two 30 minute breaks for settlement. When there is an executed trade, meaning an order between a buyer and seller is matched, the trade is written to the blockchain, as well as recorded to a database to ensure compliance with traditional record keeping.  

 

Are SST tokens launched on your platform tradeable on regular security token trading exchanges such as OpenFinance and tZERO?

SSTs are compatible with Prometheum’s ATS and work as both securities and utility tokens in the Prometheum ecosystem. It may be possible for SST issuers to create a bridge to other exchanges or blockchains by building smart contracts on the Prometheum Utility Blockchain. As the equivalent of a national market system for digital assets develops it will likely be necessary for digital assets to have the ability to trade across security token exchanges and alternative trading systems. 

 

What are Ember (MBR) tokens and what role do they play in this project?

The Ember SST fuels all SST transactions and allows holders to provide services at the protocol and application layers. Prometheum’s Ember token has both profit-making utility (work/access) and proprietary payment currency features. Ember provides the fuel for the Prometheum blockchain Network and demonstrates the versatility and value provided by a modern approach to using securities to transfer value in a decentralized, blockchain based environment. Ember is the first SST issued on the Prometheum Blockchain and sets the legal and technical precedent for further SSTs.

 

It seems like you are building everything from scratch, why not use an existing blockchain?

The Prometheum blockchain is required in order to ensure that regulatory requirements are met while also providing a viable method for the use of blockchain securities as utility tokens. This includes direct interaction with distributed applications as well as processes for moving blockchain securities in and out of brokerage accounts when a user wishes to trade them on the Prometheum ATS.

 

Is there anything else that you would like to tell us about Prometheum?

Prometheum is creating the market infrastructure needed for digital assets to go mainstream. When the SEC essentially declared that tokens were securities in the 2017 DAO report, such infrastructure didn’t exist, which meant that there were no compliant facilities for the issuance, trading, clearing, settlement and custody of token securities. Prometheum sought to fill that void and is creating the infrastructure that will allow the general public to invest and trade in digital assets, while also providing mechanisms for clearance, settlement and custody after trades are made. The Prometheum Network is meant to allow the general public to participate, which is required in order for digital assets to go from a new asset class to a mainstream asset class. 

To learn more visit Prometheum.

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Issuers

Black Manta Capital and Tokeny to Launch Licensed ‘Multi-STO Platform’

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black manta

Multi-STO Platform

Today, a pair of Luxembourg based companies, Black Manta Capital and Tokeny, have announced the launch of a ‘multi-sto platform’.

This move represents the first licensed offering of its kind. The licensure needed to make the endeavour possible was awarded to Black Manta in early 2019, by the European regulatory body, BaFin.

BaFin Approves Germany based STO Platform by Black Manta Capital

The upcoming platform will operate with each company bringing unique skills to the table. They indicate that each will work within the following roles.

Black Manta

  • Compliance adherence
  • Investor Protection

Tokeny

  • Tech provider through a white-label tokenization platform

The Finer Points

The platform, itself, is geared towards serving not only professionals, but retail investors alike, with Europe representing the target market.

STOs, to be held through the platform, look to provide access to a variety of tokens based, not only on equity, but debt instruments and fractionalized ownership, as well.

For interested parties, investor onboarding is expected to begin in early November, 2019.

T-REX

The companies indicate that the launch of this platform will be facilitated through the adoption and use of framework known as the ‘Token for Regulated Exchanges’ or ‘TREX’.

The TREX framework provides a variety of capabilities including, but not limited to, the following.

  • Identity Management Systems
  • Validation Certificates
  • Transfer Management

Tokeny Releases TREX – The First Public Framework for STOs

Commentary

Upon announcing the launch of this new platform, representatives from each, Tokeny and Black Manta Capital, took the time to comment. The following is what each had to say on the development.

Luc Falempin, CEO of Tokeny, stated,

“Working with Black Manta Capital Partners allows the both of us to focus on what we do best. We provide the institutional grade tokenization solutions for every BMCP offering and this allows them to focus on what they do best, which is building their investor community.”

Christian Platzer, Co-Founder of BMCP, stated,

“Tokeny Solutions is one of the top global technology providers in tokenization. Having worked closely with the Tokeny Solutions team for several months, we can say: we speak the same language when it comes to the prospects for our industry and together we could not be more positive about the opportunities for security tokenization in Europe and around the world.”

Speaking with Luc

We were fortunate to have recently completed an exclusive interview with the CEO of Tokeny, Luc Falempin. In this discussion we learn more about, not only Falempin himself, but the near and long term goals of Tokeny as a whole.

Interview Series – Luc Falempin, CEO of Tokeny

Black Manta Capital

Operating out of Luxembourg, Black Manta Capital is a young company which was founded in 2018. Operating under licensure received by BaFin, Black Manta is working to establish themselves as an authority in the digital securities sector.

Managing Partners, Alexander Rapatz and Christian Platzer, currently oversee company operations.

Tokeny

Operating out of Luxembourg, Tokeny is a Fintech company which was launched in 2017. Above all, the team at Tokeny is working diligently to develop a suite of services meant to serve the digital securities sector.

CEO, Luc Falempin, currently oversees company operations.

In Other News

While both, Tokeny and Black Manta, have been hard at work in recent months to establish, not only themselves, but the digital securities sector as a whole, it was Black Manta that most recently caught our attention. This was through their recently announced partnership, which will see Canadian based DigiMax enter European markets through licensure held by Black Manta.

DigiMax Eyes European Expansion through Black Manta Partnership

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