Securitize, an industry leading issuance platform, has just announced the launch of their ‘pre-trade verification’ tool.
This launch represents another step forward in functionality within their platform, by offering investors the ability to ensure the successful trading of digital securities.
Due to the complex nature of digital securities, it is not as simple as sending tokens from one person to another. A series of checks must first be made to ensure that both wallets are compatible from both a functionality, and regulatory, standpoint. In addition, a user must determine an appropriate amount of gas to ensure the transaction is processed.
This new tool automates these steps, making the entire process much easier for users. Securitize had the following to say in their announcement of this new service.
“This tool utilizes one of the features of Securitize’s DS Protocol to pre-validate any proposed trade of a DS Protocol-powered digital security. Simply by entering the wallet addresses, you can verify if a transaction will be authorized according to the restrictions and regulations specific to the chosen token. By using the Pre-Trade Verification Tool, you can avoid spending any gas for a trade that’s not going to go through, and in many cases the tool will even provide a reason as to why a trade is not possible.”
Gas refers to what is essentially the ‘fuel’ needed to complete a transaction on the Ethereum blockchain. With the network still utilizing a proof-of-work protocol, successful transactions are contingent on a group of miners lending their computational power to the process. Miners are not in the business of processing transactions for free, however. Gas is, simply put, the amount of compensation, in the form of ETH, required by miners in order to complete a transaction on the network.
While there are varying minimums of Gas needed for a transaction to be successful, network users can opt to contribute greater levels of Gas, if they are looking for their transaction to be processed more quickly.
With regards to the DS-Protocol, Gas is still needed, as it is a specialized variant of the popular Ethereum based, ERC-20 standard. While the amount of Gas used per transaction is minimal, it still adds up with time. By gaining the ability to verify if a transaction will be successful through the use of Securitize’s Pre-trade verification tool, users can be more efficient in, both, their spending and time management.
Securitize has been one of the busiest issuance platform to date, with 10 tokens issues – and growing. The following are the crop of tokens supported in the pre-trade verification tool, at the time of writing.
- SPiCE VC
- Blockchain Capital
- Science Blockchain
- LDC Crypto Universal PLC Digital Securities
- Protos Token
- Cityblock Capital
In a recent positive move, Securitize was designated a transfer agent by the SEC. This now places them as direct competitors to companies such as VStock Transfer and Horizon Globex.
The SEC breaks down the role of a transfer agent into 3 main categories. They are as follows:
- Issue and cancel certificates to reflect changes in ownership
- Act as an intermediary for the company
- Handle lost, destroyed, or stolen certificates
While DS-Protocol is the in-house speciality of securitize, various other companies have decided to forge their own path and create their own variant. The following protocol standards are a few of the leading competitors.
- Regulated Token Standard ( R-Token)
Securitize is an issuance platform that was founded in 2017. Operating in the United States, they have managed to establish themselves as, arguably, the industry leader with regards to digital securities. While most issuance platforms are still working to get off the ground, Securitize has already successfully helped 10 outfits through the tokenization process.
CEO, Carlos Domingo, currently oversees company operations.
In Other News
The following articles delve a little bit deeper into the various designations doled out to participants within the digital securities sector – with Securitize holding multiple of these. Check them out to learn more about these, and the most recent tokens made available by Securitize!
Validity Labs Joins the International Token Standardization Association ITSA
This week, the Swiss-based blockchain educational and infrastructure platform, Validity Labs confirmed the firm joined The International Token Standardization Association (ITSA). The decision to join the ITSA comes at a crucial stage of the EU’s STO regulatory development. The move demonstrates a further push for a more robust framework to support the expanding security token sector.
Validity Labs is one of the leading providers of blockchain-based decentralized applications in the region. The firm gained notoriety as an early mover when it entered the market back in 2015. At that time, the firm was the first blockchain education company in Switzerland.
Validity Labs – A Premier Blockchain Service Provider
Since then, Validity Labs assisted numerous developers and startups with educational and technical support. This support included hands-on workshops that covered a wide range of blockchain-related subjects. These topics include subjects like learning to program smart-contracts. Additionally, the firm provided educational classes for legal professionals, issuers, accountants and asset managers.
Today, Validity Labs is one of the premier platforms for blockchain-powered decentralized applications. Importantly, the firm now offers end-to-end STO implementation services with the goal to bridge the line between technology and legal compliance within the sector.
International Token Standardization Association (ITSA)
ITSA is a Non-profit German law association that specializes in token taxonomy. Token taxonomy is the identification, classification, and analysis of blockchain-based tokens. As such, the group is a leading voice for the promotion, development, and implementation of comprehensive security token market standards.
Token taxonomy continues to be a hot point of discussion within the market. Recently, regulators started prosecuting tokens that they believe violated the current securities laws. As more regulations come into place, a token’s classification can have a huge impact on the overall liquidity, profitability, and functionality a token possesses. Consequently, a token’s profitability depends on its classification in many instances.
ITSA Sees Growth
ITSA continues to see expansion in the EU market. To date, the firm includes some of the biggest names in both the finance and blockchain spaces. For example, the group already works with a host of universities including the Frankfurt School of Finance and Management, University of Mainz, TU Munich, and the UCL Centre for Blockchain Technologies in London.
Additionally, the group secured many important bank members over the last two years. These organizations include. Commerzbank’s Main Incubator, Bank Frick, MME, Börse Stuttgart, Bundesverband Deutscher Banken, and the German Investment Funds Association BVI).
ITSA Prepares for the Digitized Economy.
Importantly, ITSA provides startups with a plethora of helpful information. Startups can seek out support and know-how in the areas of blockchain-enabled solutions, decentralized applications, tokenization, and security token offerings. To date, the group already has helped startups SolarisBank, CryptoTax, and Ambrosus achieve growth.
Validity Labs – A Bright Future
The decision to join the ITSA was a smart maneuver. On top of all of the technical and legal support the firm now has access to, they also are a part of a huge network of blockchain professionals. This network will help Validity Labs achieve its lofty goals in the market.
Agora Innovation Secures Funding for IVE.ONE Platform
This week, the security token issuance platform, Agora Innovation announced that the firm successfully completed a seven-digit pre-series A investment round. Notably, the main investor was FinLab EOS VC. Now, Agora Innovation is set to expand its capabilities. Specifically, Agora seeks to launch its highly-anticipated IVE.ONE security token ecosystem in the coming weeks. The news showcases more demand for tokenization platforms within the EU and Asian markets, as well as, a major milestone for the IVE.ONE team.
IVE.ONE is a regulated issuing and investment platform for trading tokenized securities. Importantly, the platform enables the global trading of digitized securities within the legal framework of a specific region. The use of blockchain technology provides more efficiency in the sector because it enables developers to integrate compliance mechanisms directly into the platform’s tokens.
One of the main concerns for developers of the IVE.ONE platform was scalability. Scalability continues to plague Proof-of-Work blockchains such as Bitcoin. In order for large blockchain adoption to increase, projects need to emerge with the highest scalability possible. As such, IVE.ONE utilizes a unique dual-blockchain setup. The platform can accommodate both ERC20 and EOSIO blockchain tokens.
IVE.ONE promises to deliver some unique and powerful tools to the market. The platform enables advanced tokenization and investments into regulated securities. On top of the tokenization benefits, the firm also provides a proprietary verified digital identities system.
This system utilizes a blockchain verification system to link users to their respective blockchain wallet addresses. Once linked, the platform employs a rule engine to ensure all the tokens remain aligned with the varying national regulatory requirements set forth.
Agora Innovation – Dual Blockchain Approach
Discussing the new platform’s capabilities, Evgeny Matershev, Agora Co-Founder and Chief Product Officer described the excitement felt by developers after gaining access to the EOS blockchain. Matershev described how the dual-blockchain approach provides greater flexibility for issuers and investors. Additionally, he spoke on how recent updates to EOSIO can ensure the future scalability of the entire project.
Also, Phong Dao, Agora Co-Founder, and CEO chimed in on the status of the project. He described how his firm utilized a seed investment from HTGF one year ago to bring the project to fruition. Notably, he touted how the project provides a better ecosystem for digital assets on the blockchain
Dao explained that the firm will now expand marketing and sales activities into the Asian market. He also stated that the eventual goal is to expand into the EU within the coming year. Lastly, he spoke on the firm’s next moves. These maneuvers include an STO scheduled for the second quarter of 2020.
FinLab EOS VC
Importantly, FinLab EOS VC was the main investor during this funding round. FinLab EOS VC is one of the first and largest investors focused specifically on financial services technologies in the EU market. Also, Stefan Schütze, Managing Director of FinLab EOS VC Fund spoke on how the platform incorporates a complete and automated regulatory framework with an easy to navigate interface.
IVE.ONE is Set to Launch
Considering the added usability and functionality IVE.ONE promises to investors and issuers, there are sure to be some significant advantages over the competition. You can expect to hear more about this exciting project as the launch date approaches.
Australian Securities Exchange (ASX) Prepares Blockchain Clearing System Launch
This week, executives from the Australian Securities Exchange ASX made some encouraging statements regarding the firm’s shift towards blockchain technology. The company has spent several years contemplating how to best upgrade its current outdated clearing and settlement system – CHESS. Now, thanks to a team of ingenuitive developers, the entire Australian securities market will now enjoy more efficiency, transparency, and security.
Importantly, ASX was one of the first major securities firms to embrace blockchain technology in the country. Over the last few years, the company shifted its attention to tokenization and security tokens. These technologies are far more efficient than the current business systems in place.
Discussing the upgrade in a recent interview, ASX CEO, Dominic Stevens described the excitement surrounding the entire project. He explained how the new system provides the entire industry with a more streamlined alternative. Specifically, Stevens touted the improved clearing and settlement times the system boasts.
Traditionally, clearing and settlement can take upwards to a week to complete. This delay is due to the involvement of a host of third-party verification systems. All of which add to the total costs of the transaction. In comparison, tokenized securities can settle in hours because they operate in a trustless manner that requires no other verification.
Stevens also spoke on the power of risk management and process automation that the new system brings to the market. In terms of risk management, security tokens create liquidity in the sector. As such, this liquidity provides investors with more options. Additionally, smart contracts provide issuers with the ability to integrate certain processes and regulatory requirements directly into a token’s protocol.
In order to create a new clearing system that could accomplish all the required tasks, ASX made a strategic partnership with the US-based firm Digital Asset (DA). For its part, DA agreed to create and manage the blockchain underpinnings of the platform.
DA is a blockchain infrastructure provider that serves enterprise-level clientele. The firm is well-recognized in the sector. Previously, DA made global headlines after the firm secured $35 million in Series C financing from ASX in December 2019. Today, you can see that funding went to good use.
ASX Prepares to Launch New System
According to company documentation, ASX seeks to begin industry testing as early as July 2020. Unfortunately, the firm provided no additional information as to exactly how, and who would participate, in the new system’s launch.
The land down under continues to shine in the blockchain realm. Ever since government officials proclaimed cryptocurrency legal way back in 2017, the entire industry has experienced growth. Today, Australia holds the registration to 312 exchanges.
ASX – Taking the Australian Blockchain Market to New Heights
This latest news is sure to spark the interests of securities firms globally. Many of these firms have been on the fence regarding blockchain integration. For now, ASX is set to take a leading role in the global market pending a successful launch of its new clearing system.