Security Token News
MAS Capital to Join Security Token Alliance (STA)
The security token sector continues to organize on a large scale through the use of groups and strategic partnerships. This month, the VC and financial consulting firm MAS Capital announced plans to join the Security Token Alliance in the coming weeks. The move strengthens the security token sector and brings MAS Capital’s experience in line with the STA’s growing community of professionals.
Mas Capital provides an innovative and unique approach to the blockchain sector. The firm specializes in funding and advising firms on how to go public in the US. The company is a pioneer in the reverse merger and IPO sectors.
Reverse Merger vs IPO
A reverse merger is an investment strategy that allows a company to go public for far less than traditional IPOs. Traditional IPOs are complicated by nature. In order for a company to host an IPO, they must first hire an investment bank to underwrite their shares.
In addition to this step, an IPO requires a lot of due diligence. Companies must be aware of the current market climate in order to time their launch optimally. Also, these companies must meet a long list of regulatory compliance measures prior to the start of their crowdfunding campaign. When companies utilize a reverse merger strategy, they eliminate much of these costs and delays.
How a Reverse Merger Works
In a reverse merger scenario, a private company will merge with an already public-listed company. In this way, private business can instantly go public. The strategy is simple but it does have some drawbacks. Primarily, those companies are unable to raise funds immediately using this strategy.
The Security Token Alliance
Now, Mas Capital wants to bring its experience to the Security Token Alliance in a major way. The STA is one of the most publicized security token groups in the space. The STA’s goal is to bring together diverse organizations for the betterment of the entire security token sector. The group currently has 32 handpicked members from across the globe.
Security Token Alliance via Homepage
According to the STA’s homepage, the security token sector has unlimited potential, with some estimates going as high as $10 trillion. Importantly, the STA seeks to eliminate adoption delays due to lack of clarity among industry professionals such as lawyers, stakeholder, advisors, and compliance officers.
The STA is the brainchild of long-time blockchain enthusiast, Fredrick Bussler. Bussler created the STA in 2019 with the goal to become the world’s largest think-tank for the security token industry. Many see the group’s role as critical in the development of security token industry standards. Currently, the industry is fragmented, with multiple factions all working towards separate goals. The STA seeks to transform these different pieces of the puzzle into one cohesive movement.
MASEx
For their part, MAS Capital is set to launch a new security token exchange called MASEx. The exchange will bring the STA directly into the growing number of security token exchanges launched this year.
Speaking on the decision to join the STA, the Chairman of MAS Capital, Aaron Tsai elaborated on how MASEx will provide the STA with a global security token exchange in which to list the groups growing number of STOs. Tsai also took a moment to discuss the trends currently seen in the sector. He cited the fact that STOs continue to launch in the US, EU, and Asia.
MAS Por Favor
MAS Capital seeks to become a major player in the security token sector. Their latest maneuver is sure to better the firm’s position in the market. Now, the STA is set to push their group to new levels, while at the same time increasing the overall education in the marketplace. You can expect to see this partnership make some serious moves in the coming months.
African DSO
KoreConX has recently announced that they have been chosen by Libra Project to host an upcoming digital security offering.
This event will see Libra Project raise capital for their green initiative. Primarily, Libra Project is working to develop renewable energy sources, with the goal of bringing 1st world amenities, such as reliable power, to 100 million humans.
This endeavour represents the first fully compliant DSO to target, and be hosted, within Africa and the Middle East – also the primary regions in which the project can affect the most change.
Commentary
In making the announcement of their partnership, the CEO of each, KoreConX and Libra, took the time to comment. The following is what each had to say on the matter.
Hans Fraikin, CEO and Cofounder of Libra Project, stated,
“Libra Project is thrilled to enter into this new partnership with KoreConX…Their world-class digital securities asset management protocol will accelerate our plan to become the first fully compliant DSO (digital security offering) in the Middle East and Africa. Ultimately, this partnership supports Libra Project’s mission of democratizing access to impact investments all the while bringing clean energy to hundreds of millions of people in Asia and Africa.”
Oscar Jofre, CEO and Cofounder of KoreConX, stated,
“The Middle East is a very important region for us. We want the regulators and companies in the Middle East to know that there is a provider that does things the right way and will meet their regulatory obligations. We are truly glad that more and more companies are starting to realize the transformation that comes with blockchain, and the ways it can simplify doing business.”
Libra Project
Libra Project is a U.K based company, operating out of London. The company maintains satellite offices in a variety of locations, including Abu Dhabi. Libra Project is actively developing their own service, known as Blockchange. This will act as a bridging platform, connecting green initiatives start-ups with interested investors.
Company operations are overseen by CEO, Hans Fraikin.
KoreConX
KoreConX is a New York based company, which was founded in 2016. Through their KorePartners Ecosystem, and in-house services, this young company is able to offer clients a comprehensive digital securities issuance platform.
Company operations are overseen by CEO, Oscar Jofre.
In Other News
Libra represents a growing trend surrounding ‘green’ projects. Another company which is utilizing blockchain to tackle global issues is Almond. Not only did we recently detail their company, but we had the pleasure of interviewing their CEO. Check out the following articles to learn more about Almond, and what they are doing to better the world.
Almond – Be the Chance the Earth Needs
Interview Series – Almond CEO, Oliver Bolton
The security token issuance platform, Securitize raised eyebrows amongst the cryptocommunity this week after releasing its DS Token code to the public. The move goes along with the crypto sectors long-held stance of open-source projects. Now, programmers from across the globe have a chance to test and advance the platform’s core coding.
News of Securitize’s decision spread quickly after the announcement was made at Coindesk’s latest Consensus 2019 conference. Consensus is one of the largest blockchain conferences in the world. Securitize used the hugely popular seminar to ensure their announcement received the proper attention and publicity the company desired.
A Proven Standard
Discussing the decision, Securitize co-founder and CEO,Carlos Domingo first explained how Securitizes’ Digital Securities Protocol proved itself over the last year. He then took a moment to explain why the decision opens many doors for the company.
Securitize via Homepage
Domingo sees a future where developers are now able to create and test Dapps based on the Digital Securities Protocol (DS). Dapps are a crucial component of any token standards in the marketplace. As a result, analysts continually point out that the Dapps propel a project forward.
Dapps are Important
For example, Ethereum is by far the most widely used platform to launch security tokens. In most instances, security tokens launch as a variant to the ERC-20 protocol. The main difference being that these tokens also include the necessary regulatory compliance mechanisms found in security tokens. Likewise, ERC-based Dapps are among the most prevalent in the market.
Now Securitize wants to capture some of the excitement and added functionality that Dapp developers bring to the table. Domingo commented on the need to provide these developers with a viable venue to actually make a difference with the code.
In a company blog post, Securitize elaborates on this theory. Here, Securitize states the importance of their strategy. Basically, the firm spent the last year perfecting their coding and proving that it is reliable enough for real-world use. Now, the DS protocol is ready to go to the next level.
DS Token Protocol
According to the blog post, the goal of the DS protocol is to provide the “proper Digital ownership Architecture to address all aspects of the digital securities lifecycle.” Company officials now hope that the cryptocommunity will step up and really put the DS protocol to the test.
DS Token Code
The newly released coding includes five main interfaces in which developers can interact, test, and build on the coding. The first component is the DSServiceConsumerInterface. This portion of the coding is what enables the other component to interact in a seamless fashion.
Next, the DSTokenInterface is the actual token protocol. As expected, the coding shares many aspects of the ERC-20 protocol but with some key differences. These upgrades include investor-centric balances.
The DSTrustServiceInterface is where developers can assign trust roles in the context of the DS token. This is how developers are able to authorize high-level users and developers within the platform.
A DSRegistryServicesInterface is used to define the Registry Service of the tokens. This is where the token holds all relevant ownership information. Consequently, this section is a critical component when discussing token compliance.
Finally, the DSComplianceServiceInterface is how tokens are able to continually check to ensure compliance throughout its lifecycle. Secondary compliance concerns are a major issue in the security token sector. This protocol is what enables DS tokens to remain within the legal guidelines of digital securities. Importantly, this protocol plays a major role in secondary market compliance as well.
Securitize Steps up its Game
The decision to go open-source is a smart one on the part of Securitize. The crypto sector was built on open-source projects such as Bitcoin and Ethereum. Securitize is now in line to continue this legacy and push its DS token protocol to new heights.
Designation Granted
DigiMax has recently announced that they have successfully been granted a designation as an ‘exempt market dealer’.
This designation, doled out by the Ontario Securities Commission, will allow for DigiMax to issue digital securities on behalf of their client, without the need for a prospectus. As a result, DigiMax will see their advisory, and issuance platform, become more flexible, providing client easier access to capital.
Exempt Market Dealer
For the majority of companies issuing securities within Canada, a prospectus is needed to remain regulatory compliant. There, however, exists a subset within capital markets, which allows for companies to forgo this step. This subset is known as an exempt market, and typically indicates that less protective measures are put in place for companies granted exempt status.
For more information on exempt markets, and those taking part, click HERE.
Prospectus
A prospectus is a form of documentation which is typically required by regulatory bodies, such as the Ontario Securities Commission. The documentation consists of a thorough outlining and description of a companies planned actions, pertaining to a capital generation event.
Commentary
In making their announcement, DigiMax CEO, Chris Carl, took the time to comment. The following is what he had to say on the matter.
“We are very excited to have been granted registration as an EMD in the jurisdiction of Ontario in Canada…This registration allows us to serve Ontario based corporations and investors as an exempt market dealer in various forms of funding, and to market such offerings to institutional or accredited investors. Working with our growing network of similarly registered dealers in other countries, DigiMax Global Solutions is well on its way to becoming the leader of a global syndicate of dealers able to assist companies to raise capital around the world.”
DigiMax
DigiMax is a Canadian company operating out of Toronto, Ontario. Since operations were launched in 2017, DigiMax has developed a platform which facilitates capital generation events in the form of digital security offerings.
Company operations are overseen by CEO, Chris Carl.
Ontario Securities Commission
The Ontario Securities Commission (OSC), is a government run, regulatory body, which oversees the enforcement of various acts. Each of which has been designed to protect investors through the creation of fair and honest markets.
In Other News
The digital securities sector has seen various large developments as of late. We have seen huge conglomerates make their entrance, while existing industry participants hone their platforms and services. Here are a few noteworthy events from recent weeks.
Calibra – A Product of Facebook, Built on Two Tokens
BnkToTheFuture to Utilize Altcoin.io for Security Token Exchange
Coinbase Custody Adds Support for Digital Security ‘BCAP’
