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MetalStream & MSGLD Security Tokens

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MetalStream & MSGLD Security Tokens

The tokenization of precious metals continues to be an area of expansion within the security token sector. This week, MetalStream Ltd (LL16561) joined in on the action with the launch of the MSGLD security token. The news symbolizes another entry into the blockchain sector, as well as, a strong desire to bring the advantages of tokenization into the global mining arena.

According to company documentation, MetalStream seeks to transform financing within the junior mining space. Notably, company executives seek to incorporate the use of metal stream contracts and MSGLD security tokens to provide much-needed liquidity in the market.

Advantages of Tokenized Gold

Tokenized gold provides investors with a ton of advantages over its traditional counterpart. For one, its more easily stored and traded. Traditional gold requires significant investments in vaults, security, and transportation. Tokenized gold requires none of these items and it can trade 24 hours a day.

Speaking on the developments, MetalStream Managing Director, Rohan Cavaliero explained the excitement surrounding the project. He stated that his firm was “delighted” to have an opportunity to improve the investor experience. He also explained how the new system ultimately provides more liquidity, safety, and value through the integration of forward purchase agreements with public companies

Rohan Cavaliero - Metal Stream Director Via Medium

Rohan Cavaliero – MetalStream Director Via Medium

MetalStream is in a unique position to bring tokenized gold to the market. Unlike many competitors in the market, the firm has no debt. As such, MetalStream is able to fund the forward purchases of in-ground gold resources. As part of the firm’s tailored approach to the market, MetalStream only tokenized small proportions of its suppliers’ known gold resources. This strategy ensures that all mining developments remain profitable for the firm.

MSGLD Security Tokens – MetalStream

Participants in the firms STO receive MSGLD security tokens. These tokens are fully compliant with all relevant securities laws and regulations. Each MSGLD token lives on the Ethereum blockchain. These tokens offer true transparency with an immutable and auditable record of ownership.

Each MSGLD token is redeemable for certified gold bullion. MetalStream only sourced gold for this project from reputable and experienced mining companies. Consequently, the gold features a minimum fineness of 99.5%. Notably, the firm provides investors a rate discount of approximately 30% to the current spot price.

Strategic Partnerships

To bring its tokenization strategy to life, MetalStream partnered with two Canadian mining firms. Both Canamex Gold Corp. and Guyana Goldstrike Inc. are Canadian publicly listed companies. For their part, these miners provided 80,000 oz. of gold for the first issuance of the MSGLD token.

MetalStream Goes Live

The MetalStream project symbolized the further adoption of blockchain technology within the precious metals sector. You can expect to see this trend continue as more firms get acquainted with the advantages of blockchain integration. Just this week, another major tokenization project, Tether Gold came to light. For now, MetalStream has the momentum to become a major player in the space moving forward.

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David Hamilton is a full-time journalist and a long-time bitcoinist. He specializes in writing articles on the blockchain. His articles have been published in multiple bitcoin publications including Bitcoinlightning.com

Security Tokens

Flyt Property Brings First Tokenized Real Estate STO to Africa

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BnkToTheFuture Invests in Blockchain Consultancy Firm, Diacle

This week marks another important milestone within the international security token sector as the African-based tokenization platform, Flyt Property announced plans to host the first-ever Tokenized Real Estate STO on the continent. The news demonstrates an acceleration in the adoption of tokenization across the global real estate market. Additionally, it symbolizes a major advancement for African markets moving forward.

According to company documentation, Flyt Property Investment will issue Africa’s first property-backed security token. Importantly, the blockchain-based token represents ownership in Flyt Property’s new real estate fund. Unlike previous tokenization ventures within the region, Flyt features full regulatory and legal compliance.

Flyt Hospitality Fund

The newly tokenized Flyt Hospital Fund focuses specifically on strategically located hospitality properties. Also, the fund will focus on sectional-title serviced apartments and student accommodations. Traditionally, this style of real estate required the participation of a major financial backer. Flyt believes that through the power of tokenization, the firm can open up these investment opportunities to a host of new private investors.

Importantly, the Flyt Hospital Fund is a South African Section 12J fund. This is a critical categorization as Section 12J investments receive tax breaks and a host of other advantages in the market. The concept of Section 12J properties first entered the market via the Income Tax Act of 2009 as a way to stimulate market growth. Importantly, South African taxpayers who invest in local 12j companies receive a plethora of benefits including a 100% tax deduction.

Flyt Property

In a recent interview, Zane De Decker, MD of Flyt Property Investment spoke on the important maneuvers his firm has made. He explained how the new strategy places Flyt far ahead of the curve. Decker also touched on the overall excitement felt by his team. He then spoke on how the project provides new market opportunities to investors.

Flyt Property via Homepage

Flyt Property via Homepage

Decker was keen to go into some of the finer details related to the project. He described how the new services benefit both traditional and token investments. Flyt will allow both fiat and tokenized investments into the fund. Consequently, this strategy will increase the liquidity of the entire project. Lastly, Decker described why the transparency provided by the new tech is a major upgrade for the market.

Partnerships

Flyt Property Investment worked with the Swiss-based financial technology supplier Bakari to make the project a reality. Speaking publicly, Ciaran MacDevette, Co-Founder of Bakari, explained that the new project embraces next-generation financial technology. Additionally, MacDevette stated that Bakari was “proud” to be working with the Flyt Hospitality Fund. He also discussed the reasons why his firm continues to be a leader in FinTech innovation.

Flyt token (FLYT)

FLYT is an ERC-20 compatible token that lives on the Ethereum blockchain. As an ERC-20 compliant token, the platform enjoys some significant advantages including higher interoperability. For example, all Flyt tokens can be self-custodied by investors with only the need for an ERC-20 compatible wallet.

Flyt Property Investment

Cape Town appears to be Africa’s new blockchain epicenter. These latest developments are sure to place Flyt Property Investments in a category of their own. For now, the African markets are primed and ready for large scale tokenization.

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Issuers

Bankhaus von der Heydt Unveils Blockchain Strategy

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VR Bank to Issue Security Token with the help of Tokeny and Lition

This week, the German Bank von der Heyd stunned the EU banking community after revealing plans to issue security tokens and offer custodial services in the coming weeks. The news demonstrates further integration of blockchain technology among the EU’s traditional banking sector, as well as, a desire by Bankhaus von der Heydt to become the industry leader.

News of the new services first broke via a press release. In the release, the private bank shed some light on the project and the progress to date. Company documents revealed that the bank completed its first custodial transactions successfully this month. Additionally, the blog gave some insight into the bank’s future intentions.

Tokenization Strategies

According to reports, Bankhaus von der Heydt will provide commercial clients the ability to tokenize assets via the platform. In this way, bank officials seek to become a major force in the German blockchain sector. Additionally, the bank has plans to issue a EURO-backed stablecoin in the coming months to supplement its digital asset economy.

The new products make Bankhaus von der Heydt the first German bank to provide a digital asset custody solution to clients. As such, the firm hopes to achieve a significant strategic advantage over the competition. Discussing the new strategy Bank von der Heydt managing director,  Philipp Doppelhammer spoke on his firm’s work. He explained that bank researchers spent years observing the blockchain space. This research helped the firm to design relevant products to the current state of the market.

Bankhaus von der Heydt Managing Director Philipp Doppelhammer via Xing

Bankhaus von der Heydt Managing Director Philipp Doppelhammer via Xing

Doppelhammer also explained why these products provide his firm with outstanding added value. As the only German bank to offer licensed digital asset custodial services, Bankhaus von der Heydt is positioned to be a major player in the EU markets. Lastly, he took a moment to let the public know that these products are now ready for the market from a regulatory and technological perspective.

Partnerships

In order to ensure the success of the venture, Bank von der Heydt collaborated with FinTech and blockchain services provider, Bitbond. For its part, Bitbond provided the technical infrastructure surrounding the custodial aspects of the strategy. Additionally, the bank utilized Bitbond’s proprietary technology to develop several asset structuring and asset servicing products as well.

Speaking on the partnership, Radoslav Albrecht, CEO, and founder of Bitbond explained how his firm continues to work with several banks and financial intermediaries to expand the capabilities of the platform. He also touched on the important benefits tokenization brings to the market, such as liquidity.

Additionally, Albrecht described the feeling of excitement surrounding the project. Here he pointed out that this was the first project to use blockchain technology in the area of securitization and private placements in the country. He also stated that his firm was “pleased to cooperate” with the bank, which he labeled a proven industry expert.

Bankhaus von der Heydt Takes the Lead

It now appears that Bankhaus von der Heydt will have a strong positioning in the market moving forward. This firm continues to utilize its unique stance to keep up-to-date on all the latest FinTech trends. You can expect to hear a lot more from this group as its new projects gain popularity in the coming weeks.

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Issuers

CFTC to Give its Stance on GRAM Token Classification

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Telegram Battles SEC over GRAM Token Classification

This month, the Securities and Exchange Commission (SEC) stepped up its battle against the mobile messaging giant Telegram. For months, the two groups have been enthralled in a trial to determine the classification of Telegram’s GRAM token. This week, in an attempt to break the legal stalemate, the SEC reached out to the Commodity Futures Trading Commission (CFTC) to hear its stance on the project.

According to reports, a letter was sent from the federal judge presiding over the case, Kevin Castel, directly to the Office of General Counsel of the United States Commodities Futures Trading Commission. Specifically, the letter asks the organization to determine if the GRAM token is a security or not.

As such, the importance of this document can’t be overstated.  The court’s determination will have a direct effect on the classification of certain types of cryptocurrencies within the United States moving forward. For its part, the SEC argues that the GRAM token is, in fact, a security.

Regulators stated that the entire crowdfunding event, which raised around $1.7 billion, violated the Securities Act of 1933. On top of the claim, SEC alleges that Telegram participated in the unauthorized sale of securities. Lastly, the SEC also claims the group convoluted the difference between a purchaser’s investment in the digital asset and the delivery of the asset itself.

Telegram Refutes the Charges – GRAM

Despite the heavy-handed approach the SEC has taken, Telegram continues to stand its ground. The firm insists that its GRAM token is a commodity. As such, Telegram stated that GRAM tokens do not fall under the SEC’s jurisdiction.

Telegram ICO Data via ICO Drops - GRAM

Telegram ICO Data via ICO Drops – GRAM

Telegram ICO

Recent court filings shed some light on the details of Telegrams 2018 ICO. According to these documents, Telegram raised $1.7 billion from 171 investors. Of these investors, $424.5M came from 39 US-based investors. The remaining $1.28 billion in funding came from international participation from 132 additional investors.

What is the GRAM Token?

The GRAM token project originated with the goal to provide Telegram users with an online currency to supplement the Telegram platform. Developers envisioned a cryptocurrency that saw global usage among Telegram’s 300 million subscribers. According to company executives, the hope was to spur the growth of a new economy that would use Telegram as the man medium of communication.

So Are GRAM Tokens Security Tokens?

While the SEC continues to drive home their perspective on Telegram’s blockchain projects, the cryptocommunity awaits a final answer. As it stands today, several filings were made with no relevant determinations yet. Telegram executives and regulators are keen to the fact that this case would set a major precedent across the entire US blockchain sector.

When you consider the ramification of the Telegram trial, it’s easy to see why company executives are not willing to bow to the SEC’s pressure. For one, the firm has billions in funding to fight a long-drawn-out court battle. Additionally, Telegram executives have put forth a lot of effort into the creation and maintenance of the GRAM ecosystem. To lose these funds, would be a huge hit for the firm.

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