The financial services platform OKTO announced a strategic partnership with the digital high-tech product development team at Jean Martin Inc. The partnership will help to further security token adoption in the coming months. OKTO currently offers businesses and individuals a suite of security token related products. According to OKTO CEO, Grace Schroeder, the strategic partnership will give the firm the tools needed to “better serve the surging demand” in the security token sector.
OKTO seeks to expand their reach in this growing crypto sector. Currently, the firm specializes in three distinct areas. Primarily, OKTO is a security token issuance platform. The OKTO security token protocol features full KYC and AML integration. Security token issuance platforms are on the rise. Already this year, multiple platforms entered the cryptospace offering such services. OKTO hopes to beat out the competition.
OKTO users also gain access to transfer agents. Transfer agents perform duties associated with sending or receiving security tokens. Unlike traditional utility tokens, security tokens can’t be sent to just anyone. Users must verify their identity before they can participate in a security token offering. Transfer agents are a critical component in this sector. They help users maintain their security token registration. This assistance helps investors when transferring their tokens across the growing number of security token oriented platforms.
In addition to these hands-on services, OKTO provides clients with tax accounting assistance. The platform automatically collects transaction data through the use of integrated API protocols. This trackability allows security token users to better manage profit/loss by providing a clear and concise analysis.
OKTO chose Jean Martin as their strategic partner because of the firm’s proven track record of success in terms of implementing new technologies. Researchers predict a huge spike in security token usage over the coming years, and company executives want to capture as much of this revenue as possible. In a public statement, company executives spoke on their decision to go with Jean Martin. The CEO of the firm called the partnership a “perfect fit”.
OKTO isn’t the only firm excited about the partnership. Jean Martin officials stated that the company is “delighted” about the partnership. The company’s head of Blockchain development, Hari Nott stated that the firm continues seeing increased interest in the security token sector and that his team has solutions to the most “pressing” problems facing the industry.
Jean Martin Inc. specializes in new technology integration. The firm strives to be on the cutting edge of technological advancements including AI, Data Science, Blockchain technology, mobile Apps, and the Internet of Things (IoT). In addition to these high-tech services, the firm also provides clients with more traditional digital products such as SEO optimization and digital analytics.
A More Secure Tomorrow
Security tokens offer companies the ability to utilize the benefits of blockchain technology for fundraising purposes. These tokens shift the paradigm of the cryptomarket into a more regulated space. These added regulations attract traditional investment funds, and many in the crypto space see this shift as the natural evolution of the cryptospace.
BTG Pactual SA Shows 42% Profit Increase After STO Initiative
This week, the Brazilian-based Banco BTG Pactual SA revealed its Q4 earnings from 2019. Considered as one of the most pro-crypto institutions on the continent, analysts were eager to see the bank’s profits. Last year, the bank instituted multiple blockchain strategies including the launch of several STOs. Impressively, Banco BTG Pactual SA showed a net income growth of just over 42%.
As the largest standalone investment bank in Latin America, the news signifies a calling for other traditional financial firms to embrace blockchain technology moving forward. According to reports, the earnings exceeded analysts’ expectations across the board. Until now, Bank officials have kept silent on the firm’s blockchain initiative’s progress. Now, it’s evident that the project was a huge success.
STO News Pushes Profits
This substantial growth started early last year when BTG announced plans to start hosting security token offerings (STO). Since that time, the bank hosted numerous STOs. These offerings utilized both the Ethereum and Tezos blockchain.
In total, Banco BTG Pactual SA experienced a net income surge of over 42%. Broken down into categories, the bank’s recurring net income saw an increase of 61%. That equals out to around $232 million. Additionally, the bank saw a stark increase in its loan book.
Notably, Banco BTG Pactual’s loan book grew by just over 11% from Q3. Executives attributed this growth to a combination of factors. Importantly, the integration of blockchain technology, in addition to a new corporate strategy fueled the growth. Much of the growth in this sector emerged after bank officials announced plans to extend loan services into other South American countries. Specifically, Chile and Colombia are on the list.
Banco BTG Pactual SA Embraces Crypto
Banco BTG Pactual SA became recognized as a pro-crypto organization in early 2019 after the firm announced it would launch the first Latin American tokenized real estate fund STO – REITBZ. The project received heavy media coverage which helped to boost BTG’s positioning in the market. Importantly, the STO raised $3 million.
At that time, BTG executives decided to utilize the Ethereum blockchain to carry out the STO. While the project was successful, banking officials raised some concerns regarding the structuring of the Ethereum blockchain. Basically, bank officials wanted a way to ensure that no transactions got verified from miners located in countries under US sanctions.
Since Ethereum is a decentralized blockchain that allows anyone to mine it via the Proof-of-Work consensus algorithm, blocking miners due to their location was impossible. As such, Banco BTG Pactual SA executives announced a change over to the Tezos blockchain in July 2019. Tezos provides a more permissioned blockchain than Ethereum. Consequently, the firm allows Banco BTG Pactual to avoid any future concerns regarding transaction validations from US sanctioned countries.
Banco BTG Pactual SA – Tezos Big Plans
Almost immediately after the Tezos integration, both firms announced that they had around $1bn in existing and prospective token issuances in the pipeline. This announcement helped to drive profits even further, as investors are now bullish on the new tech integrations.
Banco BTG Pactual SA – An Industry Leader
As the top player in the Latin American crypto sector, Banco BTG now has the ability to set the pace for the entire market. As such, you can expect to see a host of other institutions seeking to integrate blockchain technology as soon as possible. For now, Banco BTG Pactual SA officials deserve a pat on the back for their forward-looking strategy and successful launch of the bank’s tokenization initiative.
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.
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