A new ship finance platform by the name of New Shore Invest seeks to integrate blockchain technology into the sector. The firm will utilize the tech to create and issue equity-based limited partnership shares. The new strategy opens up the international shipping market to investors globally. Additionally, the move showcases the disruptive qualities that blockchain technology provides.
New Shore Invest’s fractional ownership will launch in Germany in Q1 2020. The firm intends to allow all retail investors to participate in the program which is loosely based on the outdated German KG model. The German KG financing model was popular in the early 2000s. Unfortunately, the system became obsolete following the 2008 financial crisis in which financing firms tightened their requirements significantly.
Discussing the revival strategy, Hanno Tamminga, founder of New Shore Invest, spoke on the importance of digitalizing the market. He explained how tokenization is important to ship owners because it provides them with access to fresh equity that was previously unavailable.
He wasn’t the only founder to praise the maneuver. Hannes Hollaender, co-founder and partner of New Shore took a second to discuss the firm’s plans moving forward. He explained that in order to excite investors, his company needed to find a strategy that was both “green and innovative.” He also described how the new system will fill the current gap of equity for shipowners.
For its part, New Shore facilitates and structures limited partnership shares of single ship companies. These security tokens utilize advanced smart contracts. In this manner, all its rights and obligations according to the articles of association are directly integrated within the token’s protocol.
Importantly, these tokens are to be ERC-1400 compliant. Basically, they will live on the Ethereum blockchain. The decision to utilize the ERC standard was a smart one on the part of New Shore Invest. For one, Ethereum’s ERC standards are by far the most popular tokenization option in the market. As such, they offer a variety of interoperability not found within other token types.
New Shore Invest STO
New Shore Invest’s strategy will break each tokenized ship company down and offer the shares to investors via STOs. This strategy is far more efficient than the original German KG model. Also. it provides a cost-efficient, secure, and faster alternative to the current business practices in the sector. For example, investors can purchase online and it only takes minutes to complete a transaction. Best of all, there are no fees for investors who participate.
New Shore Investors
According to company documents, all investors receive dividends based on the number of tokens they hold. Additionally, investors receive a profit share of any vessels sold. Finally, investors gain a handful of new liquidity as the new shares are able to be traded and transferred in a secondary market.
The Oslo-based venture capital firm, NorthCape Capital was the main financier for the project. The company is no stranger to the sector. To date, NorthCape arranged and structured $ 18 billion of lease financing. Importantly, this financing was spread across both the maritime and aviation sectors
Time to Check Out the New Shore
Given the experience and large network, the New Shore platform incorporates, its no surprise to see this team succeed. The concept of tokenizing ship ownership puts a new age twist on one of the oldest financial services available. You can expect to see this firm expand its strategy into other areas of transport as the company begins to reap the benefits of its unique business model.
Flyt Property Brings First Tokenized Real Estate STO to Africa
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.
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.
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.
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.
Bankhaus von der Heydt Unveils Blockchain Strategy
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.
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.
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.
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.
CFTC to Give its Stance on 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.
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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