The world of tokenized assets continues to expand into the traditional financial sector. This month, the world’s first tokenized hedge fund, Protos (PRTS), became available to public investors via the OpenFinance trading platform.
The Protos hedge fund reads like a whos-who of early crypto projects including classics like Bitcoin, Ethereum, and Monero. The fund initially made headlines after Protos successfully sold over $6.5 million worth of tokens during its initial release. Now, developers are ready to allow Main Street investors a chance to trade this diverse investment instrument.
The Protos fund trades on the OpenFinance Network which is an SEC-registered Alternative Trading System (ATS). As an ATS, OFN can offer users additional functionalities not available to traditional investors. These benefits include faster transactions, lower fees, and the ability to trade 24-hours a day. Comparingly, Wall Street investors can only trade hedge funds during the hours of 9:30 – 4:00 pm. Also, trading closes on national holidays.
Protos Hedge Fund
Protos investors gain access to a variety of early blockchain projects. These projects include Bitcoin, Ethereum, Monero, Ada, XRP and zCash to name just a few. Speaking on what projects made the cut, company executives stated that the fund includes a host of highly liquid projects.
Additionally, Protos partnered with a number of additional token issuance platforms including Polymath to make the project a success. The Photos tokenized hedge fund operates as a security token per SEC guidelines. Notably, the token utilizes the Securitize DS Protocol to ensure lifetime compliance.
OpenFinance Network – OFN
OpenFinance is one of only a few security token exchanges. Currently, OFN lists six security tokens including the highly publicized Spice VC token. According to the SEC registration, OFN’s license allows the platform to trade Reg D, Reg A+, Reg CF, and Reg S exemptions.
In a recent interview, OFN CEO Juan Hernandez praised the benefits of Reg A+ listings. He spoke on how companies can list tokens faster and with fewer requirements. Also, firms can raise up to $50 million in each Reg A+ campaign. When tokenized, Reg A+ crowdfunding events provide even further incentives.
For example, in the past, only accredited investors could participate in these events. An accredited investor must show at least $1 million in liquid assets. As you could imagine, the majority of investors were left out of the loop. This strategy hurt companies the most because they were unable to accept more funds. Tokenization allows companies to receive funding from any investor globally.
SEC Opens Doors to Reg A+ Token Offerings
The SEC’s recent decision to begin Reg A+ approvals provides companies with some guidance as to how to proceed with an STO legally. In the past, companies complained about a lack of transparency in the sector. This lack of clarity creates a roadblock to large scale adoption. Today, Hernandez believes the advantages of tokenization are undeniable, and that investors will steer the market towards these services as they become more widely understood.
Protos Envisions the Future
The Protos hedge fund is a glimpse of what the financial markets will hold in the future. The fund’s diverse holdings are ideal for investors that desire to own a piece of the most important crypto projects released to date.
SpaceFund One Invests in a Promising Trio
It was recently announced that SpaceFund has completed the first round of investments for their ‘SpaceFund One’ portfolio.
This marks an important step forward for the company, as it marks the transition from potential to actuality in their plans.
What is it?
SpaceFund hosts investment portfolios, curated by a team of forward thinking professionals, enveloped and shaped by Space based ventures. The first fund created by the team is known as ‘SpaceFund One’, and is still open for further investments by accredited investors.
The team behind the project makes use of blockchain technologies to tokenize ownership of the companies it chooses to invest in. In turn, start-ups working toward the future of space based endeavours gain access to much needed capital, while investors can play a role in helping them succeed – all the while benefiting from increased liquidity on their investment. Such liquidity is made possible by platforms such as OpenFinance, which supports secondary market trading of digital securities (including SpaceFund tokens ‘SF1’).
When SpaceFund was first getting off the ground, securities.io CEO, Antoine Tardif, took the time to share his thoughts on the company. Make sure to peruse the following article to learn more about the team behind the project, and what it is they are trying to achieve.
The first round of investments for their first fund is comprised of three promising companies – each vastly different from the other.
Made in Space
3D printing has improved by leaps and bounds over the past decade. The next leap for this useful technology will see it put to use in Space. The potential that 3D printing holds for cost savings, surrounding space based endeavours, is staggering; Enough so that Made in Space caught the attention of NASA in early 2019 – resulting in a $73.7M contract by the authorities on space.
CEO, Andrew Rush, currently oversees company operations.
Commercial space travel has captivated the imaginations of humans around the world for years now. However, for this to become a reality, there needs to be a commercial based space station. Axiom looks to make this a reality by learning from, and improving on, the International Space Station (ISS). In fact, the Axiom station will begin its life as an extension, or ‘node,’ of the ISS. This relationship benefiting both, with the ISS seeing increased crew capacities and research capabilities.
Operations at Axiom are overseen by CEO, Michael Suffredini.
With a means of perpetual energy yet to be discovered/developed, Earth’s satellites and Space based vehicles are dependent on more traditional forms of fuel. Orbit Fab looks to service this need by developing technologies and infrastructure to support space based refuelling stations. While this may seem like a simple concept, the execution is anything but.
Orbit Fab sees their operations spearheaded by a pair of co-founders – Daniel Faber and Jeremy Schiel.
Founded in 2018, SpaceFund maintains headquarters in Houston, Texas. Above all, the company operates as a VC firm, with a focus on utilizing blockchain technologies to facilitate space based endeavours.
Founding Partner – Rick Tumlinson, currently oversees company operations.
In Other News
While SpaceFund remains quite unique with regards to the nature of companies they are looking to invest in, the idea of a tokenized investment fund has become quite popular. The following articles are just a few which shed light on other funds which make use of a similar approach to their structuring.
Coinbase Custody Adds Support for Digital Security ‘BCAP’
This means that investors now have a reliable service to not only store their BCAP tokens, but to deposit and withdraw them as well.
Ideally, this announcement of support will have broken the ice – meaning we will hopefully see Coinbase Custody bring support for an increasing amount of similar tokens.
Since day one, reliable custody solutions have been noted by many as one of the major hurdles to achieving mainstream adoption of digital securities. Recognizing this, various companies have been working hard to develop their own solution. Coinbase custody represents one of these offerings, and in its short time since launch, has become one of the industry’s most popular services.
To date, Coinbase custody manages over $1 billion in funds, represented by over 30 assets – now including BCAP.
— Coinbase Custody (@CoinbaseCustody) June 5, 2019
Beyond the Coinbase tweet, multiple noteworthy names in the sector commented on the announcement. This includes, both, Carlos Domingo (CEO of Securitize) and Jamie Finn (President of Securitize).
— Carlos Domingo (@carlosdomingo) June 5, 2019
— 🙈 Jamie Finn (@finnstr) June 5, 2019
Beyond the service they offer, Blockchain Capital is notable as they represent one of the very first security tokens to be offered to investors. This digital security was developed through use of the ‘DS Protocol’ – a product of industry leading issuance platform, Securitize.
Company operations are headquartered in San Francisco, and overseen by Managing Partners, P. Bart Stephens and W. Bradford Stephens.
Coinbase is a Seattle based company, which operates as a service provider within the world of cryptocurrencies and blockchain. These range from merchant services, to custody solutions, and trading capabilities.
Despite their standing within the industry, and the services developed by their team, Coinbase has notably struggled to retain talent in recent months. We have seen the departure of multiple high-level employees. The most recent of which is the Coinbase CTO, Balaji Srinivasan.
Company operations are overseen by CEO, Brian Armstrong.
In Other News
Custody solution are a vital component to creating a flexible and reliable foundation within digital securities. Here are a few articles discussing the adoption, and launch, of various custody solutions over recent months.
SPiCE VC Continues Portfolio Expansion with InvestaCrowd
Through this investment, SPiCE token holders will now gain exposure to the growing InvestaCrowd. A digital securities platform that operates under a licence given by the Monetary Authority of Singapore. The goal of InvestaCrowd is to not only provide services as an issuance platform for digital securities, but to develop a trading exchange. The development of an exchange is key to achieving the oft touted liquidity that digital securities stand to offer investors.
With this news, the SPiCE VC portfolio now totals 11 promising companies. The following is a list of these projects.
As made obvious by this list, SPiCE VC is comprised of both promising start-ups and heavy hitters within the burgeoning digital securities sector.
The following was a statement made in the press release, regarding the inclusion of InvestaCrowd into the SPiCE VC portfolio.
Tal Elyashiv, Co-Founder of SPiCE VC, stated,
“We are excited about this investment and the partnership with InvestaCrowd. As one of the leading investment banking platforms, and in light of the strong expected growth in tokenizing assets through Digital Securities, InvestaCrowd is set to be one of the fastest growing platforms in the region.”
InvestaCrowd is a Singaporean company, which was founded in 2015. They market themselves as the leading digital securities platform within Asia. They have accomplished this by offering not only the issuance of digital securities, but promise of eventual secondary market trading as well.
SPiCE VC is a venture capital fund tailored towards companies in the blockchain industry. Led by Carlos Domingo, Tal Elyashiv, and Ami Ben-David, SPiCE was one of the first in the world to successfully complete their own digital security offering.
The aforementioned DSO took place in the tail end of 2017.
In Other News
Here are a few articles detailing recent events in the world of digital securities. Of note, is a recent article detailing the very same SPiCE VC discussed here today.