The security token exchange, OpenFinance Network (OFN), made headlines this week after receiving financial backing from Sharpe Ventures. The move signals a continued shift in the attitude of traditional investment firms towards the crypto space. It also places OFN in the spotlight as one of the primer security token exchanges in the market.
While OFN isn’t the only security token exchange to enter the market this year, their all-inclusive approach makes them unique in the space. The company offers users a full end-to-end security token experience. Their network includes the trading, issuance, and the SEC compliant clearing settlement process associated with security token ownership. The project now appears to have caught the attention of venture capitalist.
Chicago-based OFN entered the financial markets four years ago with the goal of providing investors access to a secondary market for trading illiquid assets. The company specializes in hedge funds, private equity, Reg D, Reg A, and non-traded REITs. The company made headlines earlier in the year after announcing a number of partnerships with blockchain-based technology firms. These firms include Harbor, Republic, Securitize, and Science Blockchain.
OFN currently lists over 135 security tokens with a total market cap of just over $6 billion. The platform utilizes the Ethereum blockchain to maintain their networks integrity. Additionally, OFN’s network includes partnerships with a number of leading banks, brokerage houses, and transfer agents.
In a public statement, OpenFinance’s Chief Product Officer explained how his firm covers the full spectrum of illiquid investments. He went on to describe how OFN recognized the huge advantages afforded through blockchain integration. Now, the company plans to become a driving force in the security token sector.
In a recent interview, Sharpe Ventures Co-Founder, Dr. James Butler, elaborated on his firm’s decision to back OFN in their strategic move into the cryptospace. He explained that Sharpe Ventures “aims to invest in blockchain businesses with proven market traction.” Dr. Butler also touched upon the brand recognition and trust gained by the exchange over their four years of operation. He referred to the OFN development team as “experienced and multiskilled.”
Tobin McComas, OpenFinance’s Director of Business Development also spoke briefly on the new strategic partnership. McComas explained his firm’s elation with the partnership. He also praised OFN’s foresight in the security token space. At on point, he stated that security tokens will be “revolutionary for financial markets globally.”
Ethereum-Based Security Token Platforms Emerge
Ethereum continues to dominate the token issuance arena. Their ERC-20 protocol is. By far, the most widely used token issuance platform in existence. Now, Ethereum also has a large percentage of the security tokens entering the space. Platforms like OFN push the market towards increased adoption of these unique tokens by integrating SEC requirements into their platform.
Security tokens create a safer investment environment for all parties involved. You can expect to see security tokens reach new heights in terms of adoption if this trend continues as predicted by many analysts.
Issuance Receives Investment from MD of Slim Ventures
Issuance receives timely Investment from MD of Slim Ventures, LLC
It has just been announced by Issuance that they have received another investment. This marks one in a series of investments that have taken place over the past few weeks.
Mike Bishop was responsible for this move – the Managing Director of Slim Ventures. This is not Mike Bishop’s first foray in to the world of blockchain. For instance, he has previous experience in advising a variety of projects which have gone on to experience fantastic growth. One such example is the crypto-exchange, LAToken.
With knowledge gained through his past experiences in the blockchain industry, it is unsurprising to find that Mike Bishop has invested in Issuance. After all, they are shaping up to be a major player within the rapidly developing digital securities sector.
Mike Bishop JD, stated,
“Having acted as an advisor for several token offerings, I am particularly excited about the advantages that tokenized securities promise in creating liquidity to non-public investments, and with that, understand the importance of deal marketing to make liquidity a realization…As a deal marketing platform that connects and engages digital securities issuers and interested investors, Issuance is well-positioned to facilitate the exposure and investor pools necessary for tokenized securities to succeed.”
Darren Marble, CEO of Issuance, stated,
“We’re thrilled that Mr. Bishop has invested in Issuance…Mr. Bishop has been a proactive supporter in our mission, and his years of experience in business development and hands-on venture building makes him an invaluable resource as we scale our business.”
Slim Ventures, LLC
Slim Ventures was created with the purpose of providing a unique means of venture capital. Through offering ‘structured financing’ to start-ups, Slim Ventures has completed over $50 million in exits through a variety of industries. For example, these range from commercial and residential real estate, to veterinarian practices.
Issuance was founded in 2018, and is based out of Los Angeles, California. Above all, the main purpose of the company is to act as a bridging platform. For example, working to connect investors with appropriate digital securities issuers.
Make sure to check securities.io again for future news on Issuance, as they have indicated future plans to tokenize themselves.
Issuance has demonstrated a flurry of activity in weeks past. Whether establishing strategic partnerships, or securing timely investments, Issuance has an eye on the future. Here are a few examples of recent developments from Issuance:
Digital Securities and Stablecoins to Benefit from ‘Wave of Innovation’
The Future is…
Fresh off the launch of their first marketing campaign, Cameron and Tyler Winklevoss recently sat down with ‘Balancing the Ledger’. In this interview, the twins discussed cryptocurrencies at large. The overall theme was regulation; what Gemini is doing to support it? and where is it needed?
Two areas in which the twins see much promise are stablecoins, and of course, digital securities. For example, speaking on the promise of tokenized securities, it was stated, “The ICO mania of 2017 – we kind of view that as the pets.com of the securities token world. They were unregistered and it was crazy town for about six months there. I think the next wave will see the real innovation, and the really interesting assets that become tokenized – like real estate, like buildings that are not currently really traded in liquid fashion. So that’s exciting.”
One interesting takeaway from the interview was the twins’ perspective on the relationship between stablecoins and digital securities. They noted that security token issuers could capitalize on the benefits of stablecoins, by using them to issue dividends.
Stablecoins are designed to inherently have less volatility than regular cryptocurrencies. By using them to issue dividends to token holders, issuers would be able to capitalize on the efficiency of a digital currency, while reducing exposure to volatility.
Regulation a good thing
Regulation can be a difficult balancing act between allowing innovation, yet ensuring safe practices. Despite this difficulty, it is still a necessity. Multitudes of investors have lost fortunes on un-regulated ICOs, as made evident throughout the last two years.
It is this very problem that has led to the popularity of the regulated digital security offering. The twins echo this sentiment, as seen in their marketing campaign, pushing for a regulated crypto.
The Gemini headquarters are in New York. The company was founded in 2014, and is a product of cofounders Tyler and Cameron Winklevoss. Above all, Gemini acts as both a custodian and exchange for digital assets. In the time since its inception, Gemini has taken a unique approach to growth, by embracing regulation from day 1.
When asked if Gemini would venture into other sectors, Cameron indicated a desire to expand into digital securities. He stated, “Virtual securities tokens is a real thing – and those sort of backed by real assets, there is a bright future there, and we may move into that.”
It is hard to find someone that hasn’t heard of the Winklevoss twins. They are Olympic Athletes, that have gone on to be wildly successful in the world of finance.
The brothers, Tyler and Cameron, are currently enveloped in advancing the world of blockchain. As they are believed to be one of the largest holders of Bitcoin in the world, this is no wonder. They closed out their interview by jokingly saying that ‘only Satoshi has more’.
To view the interview in its entirety, click HERE.
Swarm to create Security Tokens for FREE
Launching digital securities just became a little easier for interested companies. In a just released statement, Swarm, has announced they now offer ‘no-fee issuance of digital securities’.
This no means that not only can investors take part in security token offerings with no fees, but no asset owners can join them in the savings.
Speaking on the decision to provide free tokenization was Swarm CEO, Philipp Pieper. He stated the following,
“In the year since Swarm launched, we have seen overwhelming global demand from projects seeking to issue digital securities. We’ve also seen significant barriers in the cost and complexity of compliant issuance solutions. To meet that demand and scale the adoption of digital securities, we have designed a way to not only make tokenization free, but to reward token issuers in the process,”
Swarm has made it a goal of theirs to lower the barriers of entry into the market. Until recently, the idea of tokenization, and issuance of digital securities, was an intimidating thought. For instance, here are a couple other articles in which we discuss developments by Swarm.
- Swarm gains support for FIAT through Mercury FX
- The Growing World of Security Token Protocols : SRC20
The aforementioned press release marks yet another way in which Swarm has made the process easier for those interested.
Singing Their Praise
‘TheArtToken’ is one of the most successful STOs to be hosted on the Swarm platform. This fund, which provides investors with fractionalized ownership of post-war and contemporary art, recently raised great than $16 million. Services rendered by Swarm, facilitated the entire process.
Levent Süer, representing ‘TheArtToken’, commented on the alliance. He stated, “Swarm has always been on the leading edge of tokenization. Their platform made it easy for us to issue TheArtToken to the specifications of our legal counsel, and their model enabled us to focus our budgets on legal, marketing, and other crucial costs. Their stake-to-issue model not only gives us skin in the game, but the extra incentive of staking rewards means that in addition to paying no fees, we now earn SWM each month,” said Levent Süer of Fine Art Digital / XBlocks.
For more information on ‘TheArtToken’, check out our recent article detailing their goals.
Swarm CEO, Philipp Pieper, will make an appearance as a guest speakers at the ‘North American Bitcoin Conference’ in Miami. This event provides a perfect stage to convey what it is Swarm does, and how they are advancing the digital securities sector.
Swarm is based out of Palo Alto, California. The company was launched in January of 2018, and represents a decentralized capital market place. For example, they offer a range of services which facilitate the tokenization, sale, and issuance of company assets.
Swarm was named after the idea that through their services, asset creators would gain access to ‘swarms’ of investors.
- Korea’s Biggest Conference is Around the Corner
- Osman Sultan, Chief Executive Officer of EITC, will provide a keynote speech at UNLOCK and announce new blockchain initiatives over the course of the two-day forum
- UNLOCK Blockchain Forum announces more than 56 Global and regional Speakers including Blockchain Evangelist Nick Spanos
- Seoul Mayor Confirms to Attend CHAIN PLUS+ Blockchain Summit
- The Billionaire Investor Tim DRAPER is participating at the Blockchain Economy Istanbul Summit!
- Issuance Receives Investment from MD of Slim Ventures January 18, 2019
- Digital Securities and Stablecoins to Benefit from ‘Wave of Innovation’ January 17, 2019
- Swarm to create Security Tokens for FREE January 17, 2019
- Interview Series – Zoe Adamovicz, CEO & Cofounder of Neufund January 16, 2019
- Security Token Issuers to Benefit from alliance of ‘Issuance’ and ‘VStock Transfer’ January 15, 2019