Secondary Market Trading
Much of the appeal towards security tokens is the promise of new found liquidity. More often than not, this liquidity has been promised through the ability to trade these tokens on secondary markets.
We are now reaching a point in time where industry development is seeing through on its promises. Broker/Dealer SharesPost has recently announced that they have successfully completed a trade on their secondary market platform. The tokens used were none other than BCAP – digital securities representative of shares within a fund by Blockchain Capital.
With this, we are one step closer to the goal of unlocking ‘trapped wealth’ in much of the world’s greatest assets.
An Expansion of Services
It should be noted that this is not SharesPost’s first foray into blockchain. The company also offers services ranging from over-the-counter trading to custody solution. The progression to secondary markets through an ATS is only logical.
SharesPost is based out of San Francisco, and was founded in 2009. Above all, SharesPost acts as a trading platform for secondary markets. They are able to do so by being registered with the SEC as a broker/dealer, and Alternative Trading System.
Founder, Greg Brogger, commented on hosting BCAP. He stated, “This is an important milestone for the digital securities ecosystem. Now companies can efficiently raise capital and provide liquidity globally by leveraging blockchain technology in a way that complies with securities laws. We are very excited to be connecting the more than 50,000 institutional and individual accredited investors using the SharesPost marketplace with companies and funds like Blockchain Capital that are leading the way. We believe that over time digital securities will join preferred and common stock as the mainstays of the private capital market.”
Blockchain Capital is based out of San Francisco, and was founded in 2013. Above all, the company looks to usher in the future through blockchain-based venture capitalism.
Cofounder, Bart Stephens, commented on the SharesPost development. He stated, “We are pleased to announce trading of the BCAP token on the SharesPost platform. SharesPost is unique in its support of private companies and funds because they offer a comprehensive platform on which our investors can interact to enable liquidity. SharesPost has traditionally endeavored to provide the Investor community with a wide variety of information, data and analysis on issuers and assets. We’re hopeful that their platform will be a resource to our investors and allow us to deepen our relationship with them over time.”
In other news?
For those interested in learning more about Blockchain Capital, make sure to check out our token listing article. Here we go into further detail on why Blockchain Capital is one of the most promising projects around.
Archax Gears up for Launch with Quod Financial
Today, a forth coming digital securities exchange, Archax, has announced a partnership with Quod Financial. This pairing will see Archax turn to Quod Financial for various services, ranging from smart-order routing, trade automation, to order management and more.
These services are made available through integration with Quod Financial’s ‘Adaptive Execution Platform’. Capabilities made possible through this platform will allow for Archax to effectively deliver their product to institutional investors this coming year. If they achieve this goal, Archax will become – with the help of Quod Financial – one of the first offerings of its type seen in the industry.
In their press release, representatives from both companies took the time to elaborate on the development.
“Archax will be the first venue to bring digital asset trading into the mainstream financial community. Existing crypto venues have been primarily retail driven, and so it has been incredibly challenging for our buy-side and sell-side clients to include any form of blockchain-based instruments in their portfolios as they have lacked a regulated and stable venue. Given the rigorous selection process, we are proud to have been selected for this market-changing project to bring both digital assets as well as our data-driven execution intelligence to a wider audience.”
“We wanted to find a best-of-breed partner with an established and proven trading platform used by both the buy-side and sell-side. And one that was ready to handle the complexities of digital assets. Quod’s open, scalable and robust platform fitted the bill perfectly and we are happy to be able to offer it to clients as one of the ways of accessing our exchange…A key decision when evaluating technology providers from the traditional world was to find a platform that could be fully customised to support the new and developing security token space. Quod’s design, using industry standard architecture, allows easier customisation when required. That, coupled with their experience of handling high throughput trading for many tier-one banks and an array of other established regulated clients, made them an ideal partner.”
Quod Financial is an established company specializing in capital markets. Since their launch in 2004, the company has expanded from London to maintaining offices in New York, Paris, Hong Kong, and Dubai.
Company operations are overseen by CEO, Ali Pichvai.
This London based company was founded in 2018 by Graham Rodford, Matthew Pollard, and Andrew Flatt. The company is aiming for a 2019 launch of their platform, designed to act as an exchange for digital securities.
In Other News
Archax, in particular, has found themselves in our news feed various times in past months. They have had an impressive development period, resulting in investments from SPiCE VC among others. Check out the articles below to learn a little more about Archax.
seriesOne to Utilize ST-20 Standard by Polymath
Various companies have made announcements detailing intended usage of token standards lately. As the development of various crowdfunding platforms in the digital securities sector continues, the time has come for many to choose what they feel is the most promising standard. With this in mind, seriesOne has just announced that they have partnered with Polymath.
This partnership will see seriesOne utilize the ST-20 token standard to issue and manage digital securities. The ST-20 protocol is based off of the Ethereum blockchain, and will allow for seriesOne to maintain compliance with global regulations governing the industry.
The Future is ST-20
For seriesOne, it was a simple choice to settle on ST-20. This token standard was one of the first to be developed specifically with digital securities in mind. As such, Polymath has had more time than most to develop, hone, and market their offering. This effort has seen the standard adopted by various companies, with seriesOne being the most recent.
In their press release, the CEOs of each company took the time to express their thoughts on the announced partnership.
“Investors around the world trust Polymath, which was fundamental to our decision to work together…We are confident that working with the Polymath team using the ST-20 protocol will enhance the process of raising capital on our platform.”
“Polymath is proud to work with innovative partners like seriesOne, who has fulfilled a specific demand for a turnkey financing portal for any fundraising process…We are thrilled to be the chosen technology standard for the seriesOne platform, and we look forward to demonstrating yet again how industry can work together to set a standard for creating and managing a successful Security Token Offering (STO).”
seriesOne is a crowdfunding platform, which specializes in the issuance, distribution, and management of digital securities. Through their platform, issuers are able to effectively, and efficiently, host security token offerings. The company is based out of Miami, and was founded in 2013.
Polymath is a Canadian company, which maintains headquarters in Toronto. The company was established in 2017, and is spearheaded by CEO, Kevin North.
To date, Polymath and their token standards remain one of the most adopted solutions in the young world of digital securities. Their own utility token is available for trading on various industry leading cryptocurrency exchanges such as Poloniex and Bittrex.
In Other News
Each of these companies discussed here today have found their way into our headlines in recent months. For a look at what they have been up to recently, make sure to check out the few articles listed below!
Assurely presents the CrowdProtector
In a recent announcement, Assurely and AXA XL have indicated they are teaming up. The result of this partnership is the launch of the CrowdProtector insurance service.
In this relationship, AXA XL provides the insurance, while Assurely has developed the platform to deliver this service within the blockchain industry.
CrowdProtector is a service that was designed by Assurely, with the intent to provide all participants in crowdfunding events with insurance. The crowdfunding events that this product is tailored towards includes the increasingly popular, STO.
The product works on two main fronts.
- Protect the issuer
- Ensures protection from potential lawsuits brought forth by disgruntled investors
- Protect the investor
- Ensures issuers remain compliant with obligations and transparent with operations, with compensation otherwise
With one of the main draws behind STOs being the safety associated with the process, it is only logical that a third party insurance service would be developed. A service such as CrowdProtector should come as a welcome development for conservative investors looking to partake in the growing sector.
Despite only recently launching, the CrowdProtector service has seen early adoption through various platforms. A few examples of these include TruCrowd, CryptoLaunch, Silicon Prairie, Fundanna, and Nvsted.
In their press release, representatives from both Assurely, and AXA XL, took the time to comment on this development.
“New economic markets, such as crowdfunding or online capital formation, create great new opportunities for the Main Street investor, but also pose new risks…To combat new risks in new markets, investors look for a symbol of safety, validity, and trust. Online capital formation and crowdfunding – both equity and STOs – lack this symbol today. This marketplace needs trust, safety, and confidence among both issuers and investors to thrive; something that regulations and funding portals alone may not completely satisfy.”
Dan Kumpf, CUO of AXA XL, stated,
“We are excited to partner with Assurely and their technology-based underwriting of CrowdProtector™ policies…This solution demonstrates the value of insurance in helping opportunities move forward. New crowdfunding practices are proliferating today. Without proper coverage, millions are at risk. Our work with Assurely is a great example of innovation in the industry. Collaboration between incumbents and innovative InsurTech startups such as Assurely, will yield a positive result for the industry and advance it as a whole.”
AXA XL is a branch of the world renowned insurance provider AXA. They are a company which employs thousands of individuals globally. They maintain 19 offices in 17 different countries.
This New York based company was founded in 2016. They have strived since, to develop a platform allowing for the integration of traditional insurance services within the world of blockchain. The culmination of these efforts, since launch, have led to the aforementioned CrowdProtector Platform.
- Equity Tokens vs Security Tokens March 20, 2019
- Archax Gears up for Launch with Quod Financial March 20, 2019
- seriesOne to Utilize ST-20 Standard by Polymath March 20, 2019
- Assurely presents the CrowdProtector March 19, 2019
- Verseon to use BlockRules Platform for Upcoming Security Token Offering March 18, 2019