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SEFtoken to host Security Token Offering

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Digital Warrant Offering

In a recent press release, SEFtoken has announced their intention to host an upcoming Digital Security Offering (DSO). The company is undergoing this fundraising to continue the development of their Licensed Exchange Infrastructure.

Securitize – a market leading end-to-end issuance service – will provide the services needed to undertake this DSO.

SEFtoken is offering a product that is unique from what the market has seen to date. The plan is to offer what SEFtoken refers to as a ‘covered warrant security token’.  A ‘covered warrant’ refers to the ability for an investor to purchase a security at a specific price. This purchase must take place prior to a predetermined deadline.

Each token is representative of a warrant, which can later be converted into equity through use of the company’s Financial Market Infrastructure.

This is a unique approach, and a first, in the world of digital securities.  As it is another potential means in which blockchain technology can be used to advance finance, many eyes will be watching the success of the product.

SEFtoken

SEFtoken is a Delaware based company. They are a young company looking to make their mark on the industry. However, by turning to Securitize, they now have the means to successfully launch their world’s-first ‘covered warrant security token’.

Director of SEFtoken, Brian Price commented on the product in their press release. He stated, “The use of the covered warrant structure in the digitized security token era of 2019 introduces a critical structural enhancement to the industry overall and we are pleased to be able to grant potential investors with actual asset ownership via SEFtoken.”

He further added that, “Through our SEFtoken structure, we are committed to providing investors with what they are demanding, namely transparent and compliant ownership of a credible asset. If the offering hard cap is met, that ownership means SEFtoken holders will own 47 percent of the underlying asset and as a block will become the largest shareholder of the asset.”

Securitize

Securitize is based out of San Francisco, and was founded in 2017. For companies looking to issue digital securities, Securitize offers an end-to-end solution, guiding them through the process.

Securitize CEO, Carlos Domingo, commented on the SEFtoken announcement. He stated, “We at Securitize are very excited to kick start the new year by helping SEFtoken issue the first ever covered warrant structured digital securities. Innovative structures like these help showcase blockchain technology’s potential to unlock illiquid assets in a compliant way for asset holders.”

In Other News

Securitize is shaping up to be a leader within the digital securities sector. In fact, they were the ones to coin the term ‘digital securities’, as they believe it is better representative of the described asset.

Beyond that, Securitize has caught our attention multiple times in the last month. From reporting on a $12.75 million Series A, to being major players in an upcoming conference, Securitize means business.

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Joshua Stoner is a multi-faceted working professional. He has a great interest in the revolutionary 'blockchain' technology. In addition to this, he is a licenced Paramedic in Nova Scotia, Canada. As such, he can provide emergency care/medicine to any situation necessitating it.

Security Token News

Security Token Issuers to Benefit from alliance of ‘Issuance’ and ‘VStock Transfer’

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Issuance partners with VStock Transfer

Just announced today, deal marketing platform, Issuance, has partnered with stock transfer agent, VStock Transfer. This alliance was formed as Issuance saw a need on behalf of security token issuers.  This was the ease of token registration and transfer.

As a result, partnering with a transfer agent such as VStock Transfer, allows companies having completed a digital security offering the ability to utilize services and experience based upon decades of experience in securities law.

These teams should be able to hit the ground running, as Issuance CEO, Darren Marble, has had previous experience working with VStock Transfer. Through their ability to provide experience, along with cost saving measures, it’s no wonder why Issuance has partnered with VStock Transfer.

Commentary

The CEOs of each company discussed the partnership at hand.

Yoel Goldfeder, CEO of VStock Transfer, stated, “As an SEC-compliant transfer agent who has had the pleasure of working with a range of companies from private to pre-IPO issuers to NYSE American, NASDAQ and OTC listed companies, it was a seamless pivot into digital securities…We look forward to working with Issuance, an industry pioneer who will help to fuel the capital raising component for our clients.”

Darren Marble, CEO of Issuance, stated, “As digital securities continue to merge with the capital market infrastructure, support from companies such as VStock Transfer are critical to remain compliant throughout the lifespan of a DSO…We are thrilled to add VStock Transfer to our growing network of strategic partners and provide valuable registry and transfer services for our clients and their shareholders.”

VStock Transfer

VStock Transfer is based out of Woodmere, New York, where they provide services as an SEC registered ‘stock transfer agent’. The company is spearheaded by CEO, Yoel Goldfeder – a seasoned attorney specializing in corporate and securities law.

For a deeper look at what services VStock Transfer is able to provide, make sure to visit their website HERE.

Issuance

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, this means 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.

Recent News

Issuance is rapidly developing into a well-rounded company.  For instance, this marks just one of various strategic partnerships announced in recent weeks.

Here is a look at a few of our other articles detailing those endeavours.

Issuance and Tokeny – Partnering with a Goal of Interconnectivity

‘PCG Holdings’ Shows Belief in Security Tokens with Investment in Issuance

Exclusive Interview with Issuance CEO – Darren Marble

Issuance partners with Prime Trust

Vertalo and Issuance join Forces

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Security Token News

Digital Securities Platform DX.Exchange, Survives First Week Scare

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Dx.Exchange has had quite the tumultuous week. As the exchange closes its first week of operation, the team behind the project was able to dodge a potentially damaging situation.

From hordes of investors signing up pre-launch, to potentially disastrous glitches, here is a brief look at the problems that plagued week 1.

Details of the Problem

Upon launch of the platform, an anonymous user took it upon themselves to evaluate DX.Exchange. Shockingly, the user found information leaks that could potentially be harmful to a variety of parties.

Information being leaked ranged from password reset links, to names, email addresses, and more. With this, if someone were so inclined, they would be able to create backdoor entrances to user’s accounts.

It isn’t hard to imagine what kind of havoc a malicious individual could wreak.

Problem Solved

In an attempt to allay investor’s fears, Dx.Exchange has reached out the public with the following statement.

“We would like to thank the vigilant reporter, and our supportive community, who together with, brought his issue to our attention. We are happy to report that the vulnerability has been successfully patched, and no user funds were compromised. Our launch was met with a stellar response from our community eager to trade cryptocurrencies and digital stocks. Customer funds were always safe, our multi layer advanced monitoring and defense mechanism was able to avoid any further issue.”

This statement came after the company scheduled platform maintenance within hours of the news breaking.

Caught out Attention

DX.Exchange originally caught our attention due to the manner in which they offer their services. Rather than hosting digital securities of companies that have decided to tokenize, DX.Exchange has taken a different approach.

They are purchasing traditional shares of publically traded companies, and then issuing their own security tokens to investors, representing ownership of the shares. Due to the method in which this transaction takes place, the shares are held by DX.Exchange. However, investors holding the associated security token receive the full range of benefits associated with them (dividends, equity etc.).

Examples of these companies notably include Apple, Tesla, Amazon, and others.

Skeptics Abound

The CEO of DX.Exchange has stated that due to their licencing and region of operation, the SEC has no means in which to stop them from offering these services.

However, there are many skeptics of the exchange that believe it will eventually face due recourse. Through what means is unclear, but there are certainly going to be companies that do not want their shares tokenized in such a fashion.

Dx.Exchange

DX.Exchange is based out of Estonia, and was founded in 2018. Above all, the company acts as an online exchange, providing investors access to a variety of digital assets.

Prior to the events discussed here today, we recently spoke about DX.Exchange and the companies recent launch. To learn more about DX.Exchange, make sure to read the article below.

DX.Exchange to Tokenize Publically traded Securities

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Security Token News

tZERO Completes Distribution of Security Token

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Token Issuance

In a recent press release, tZERO has announced that it has finished distributing their native token. This token goes by ‘TZROP’, and is known as a digital security – representing ownership in tZERO itself.

While tZERO finished the token creation process months ago, per regulations, it was mandated that they remain in lock-up for a 90-day period. During this time, tokens were to be held by a third party custodial service.  Finally, this 90-day lockup came to an end on January 10th, resulting in the aforementioned distribution and press release.

Successful STO

This issuance process comes months after tZERO completed a wildly successful security token offering, or ‘STO’.  For example, taking place over a roughly 2 month span in mid-2018, tZERO was able to raise $134 million USD.  In addition, this raise was made possible through investments seen from over 1000 parties worldwide.

Commentary on the Issuance

Multiple representatives from tZERO spoke on the importance of this token issuance.

tZERO Executive Chairman, Patrick Byrne, stated, “The issuance of the world’s first public cryptosecurity, OSTKP, in 2016 was tZERO’s Chuck Yeager moment: we broke the speed of sound by introducing the concept of real-time trade settlement. Today marks our Yuri Gagarin moment, where we leave behind the confines of the known world of traditional capital markets and take the first steps towards a new market powered by blockchain.”

tZERO CEO, Saum Noursalehi, stated, “This is one of the first Security Token Offerings on a decentralized public network, and was conducted in full compliance with the U.S. securities laws…This is an exciting milestone for tZERO, and we are even more enthusiastic about the opportunities this will create for private and public companies wishing to raise capital through security token offerings, and for investors who wish to trade those securities.”

Next Up?

The next step to be taken by tZERO, and the most anticipated by investors, will be the launch of a trading platform. The company originally launched a prototype of this platform on April 9th of 2018.  However, it is anticipated that a full launch will occur midway through 2019.

The launch of this platform will facilitate trading via secondary markets.  Thereby, imbuing new levels of liquidity to previously illiquid assets.

Recent News

We have recently reported on progress being made by tZERO. For instance, here are a look at a few noteworthy events from recent days.

tZERO is rounding into Form, After Being Awarded a Recent Patent

GSR Capital turns to tZERO for the tokenization of ‘Cobalt’

tZERO

tZERO is based out of New York, and is a subsidiary of Overstock.com. Each are products of Patrick Byrne’s, who has recently noted that he will be increasing his focus on the development of tZERO.  Above all, this subsidiary acts as a platform to facilitate various services aimed towards security tokens.

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