Patrick has worked with clients across multiple industries around the world as a strategic consultant and as a lawyer with three top-tier international law firms, giving him deep transactional and project experience – as well as hands-on understanding of the start-up and growth stages of company development.
AT: For our readers who are not familiar with Securrency, could you share with us what it is your company does?
PC: Securrency develops and sells proprietary software products and infrastructure supporting the regulatory-compliant issuance and trading of digital securities in the form of security tokens. Our software is typically licensed to authorized persons, such as broker-dealers, and enable them to provide end-to-end lifecycle management of security tokens. In addition, our core interoperability protocols enable trading platforms around the world to interoperate for the trading of security tokens across a global interlinked network of centralized exchanges. Securrency’s technology allows for atomic swaps of different token types, which enables the trading of non-fungible tokens (NFTs) across a global decentralized exchange.
AT: In October you launched the protocols CAT-20 and CAT-721, could you go into some details on the differences and benefits of these protocols?
PC: The Compliance Aware Token (CAT) protocols allow issuers to mint security tokens (CAT-20) and non-fungible tokens (CAT-721) that incorporate the regulatory and transactional rules that apply to that particular security. Accordingly, the token will govern itself and not go where it is prohibited. The CAT protocols are also fully interoperable with multiple blockchains and legacy systems, which enables tokens minted with the CAT protocol to trade in various markets without losing their compliance characteristics.
AT: You recently partnered with QuantmRE to help build your real estate trading platform, could we get some details in what this partnership entails?
PC: Securrency is providing investor onboarding and token minting services for QuantmRE’s real estate fund offering by providing its technology via API to Quantm’s platform. As capital is invested into the Quantm fund, Securrency will create EQRE security tokens that will be distributed to Quantm’s investors and provide Quantm with automated compliance functionality, including fund LP communications and dividend distributions.
AT: In July 2018 you announced a partnership with SharesPost. What benefit will this offer your clients?
PC: SharesPost provides a purpose-built trading platform for security tokens, so this partnership will facilitate the trading of tokens minted with Securrency technology on the SharesPost exchange.
AT: One of your products is the RegTex engine, what is this exactly?
PC: RegTex is our suite of tools that are delivered either as a turn-key issuance portal or via APIs to existing issuance portals and alternative trading systems (ATS). This PC: enables the onboarding of investors (fully KYC/KYC/KYB/AML) and the compliant enrollment, subscription, tokenization and issuance of security tokens.
AT: You have a large international presence, are there certain regions that you are targeting to tokenize first?
PC: We have established an initial footprint in Abu Dhabi, United Arab Emirates, where we have been admitted to the Regulatory Laboratory of the Abu Dhabi Global Market – a 21st century international financial center. From this platform, we intend to support authorized persons and issuers throughout the Middle East and North Africa (MENA) region and beyond. We are also in the process of establishing a presence in Asia and in Europe.
AT: Are there any upcoming STOs in the pipeline that you can reveal to our readers?
PC: We have many transactions in the pipeline, but one that is currently in the market is Frontier Spirits. This is a really interesting, Texas-based spirits company with a market track record of selling Pura Vida Tequila, a new whiskey brand and a destination distillery that is soon to be launched. This is a traditional equity raise that is being conducted through the sale of security tokens, which is a great showcase of the intersection of the legacy capital markets and the new security token economy.
AT: You are pci dss certified, what benefits does this offer STOs and investors?
PC: PCI-DSS is not a security token industry standard, as it is a very high certification with rigorous requirements that was developed by and for the credit card industry in order to protect financial value within their networks. Securrency’s voluntary submission to this certification process demonstrates our commitment to network security and the protection of investor value.
AT: Securrency is ledger agnostic, nonetheless are there blockchains that you prefer to work with?
PC: We don’t like to pick favorites, as each ledger has certain strengths and weaknesses. We prefer to let issuers pick their favorites and we, in turn, support the issuers.
AT: You are working on cross ledger issuance, what are the benefits of this framework?
PC: This again supports issuer choice. For example, an issuer may prefer certain aspects of the Stellar ledger while still wishing to market to the Ethereum community, so issuing simultaneously on both ledgers is an appealing option.
AT: Is there anything else that you would like to share about Securrency?
PC: Unlike many of our competing platforms that were built to support ICOs with a veneer of compliance on initial issuance, Securrency was built from the core to support and expand the vast existing capital markets through the incredible functionality of well-crafted and compliant security tokens. As a result, our proprietary end-to-end suite of technologies addresses the many pain points of capital formation and secondary-market trading.
AT: Thank you for the informative interview.