The highly anticipated Swarm 2.0 update went active this month. The update pushes the platform’s already impressive open-infrastructure a step further. Now, businesses can issue security tokens on multiple blockchains at reduced rates. Currently, Swarm can launch security tokens on Ethereum, Stellar, and Tron.
What is Swarm?
Swarm 2.0 is an enterprise-level tokenization and issuance platform. Businesses can tokenize any asset utilizing swarms SRC-20 protocol. Currently, Swarm tokenizes a wide-variety of assets including securities, equities, and even fine art. This strategy lowers investment entry-levels and provides companies with access to a global investment community. Importantly, the platform incorporates some unique features that make it stand out amongst the growing token issuance crowd.
Zero Upfront Fees
Swarm raised eyebrows across the cryptocommunity after announcing a zero upfront fee structure for companies seeking to host an STO. The company’s new pricing model removes the high-costs often associated with crowdfunding ventures. In the past, analysts cited these costs as one of the main roadblocks delaying mass security token adoption. Now, businesses have a cost-effective blockchain-based crowdfunding strategy to utilize.
Swarm is an open-sourced concept which pushes the boundaries of tokenization to the next level. One example of the firm’s advantageous approach to the market occurred in August 2018. At this time Swarm revealed it had tokenized employee equity in the hugely popular Robinhood trading app.
Ironically, Robinhood had no idea, who, or what, Swarm was when questioned about the move. The company never announced or even planned to offer public shares. Luckily, the Swarm functions in a manner in which the company doesn’t require permission to offer these products. Here’s how Swarm managed to pull off this maneuver, without any approval from Robinhood, and why it’s legal to do so.
How Swarm 2.0 Works
In this example, the company utilized a combination of broker partnerships and syndicate managers to source equity from past Robinhood employees. These employees wanted to liquidate their equity prior to the firms IPO. Once enough equity was gathered, it was locked into a shell company. Then, Swarm tokenized shares of the shell company as SRC-20 tokens.
Importantly, SRC-20 tokens integrate automated legal and regulatory compliance considerations directly into the protocol. This makes SRC-20 tokens flexible in their use case scenarios.
Market Access Protocol
Interestingly, Swarm 2.0 utilizes a Market Access Protocol (MAP) to enable seamless cross-blockchain transactions. This feature makes SRC-20 tokens more attractive to investors because it allows the tokens to achieve higher interoperability. Also, MAP can function with other security tokens besides Swarm’s SRC-20 token.
Swarm 2.0 Masternodes
Another key feature to Swarm is the use of Masternodes to keep its blockchain secure. These nodes function similar to Bitcoin in that they verify and add transactions to the blockchain. Masternodes earn SWM tokens for their services. Luckily, anyone can become a Masternode. You just need to Stake 50,000 SWM tokens.
You will be glad to learn that SRC-20 tokens are compatible with the ERC-20 protocol. Consequently, this compatibility means that you can stake your SWM holdings in any ERC-20 wallet. Once you have your tokens gathered, simply download the masternode software and you are official.
Partnerships are an important part of Swarm’s business strategy. Notably, the company partnered with the UK-based crypto custodial service provider, Copper. Speaking on the partnership, Swarm CEO and co-founder, Philipp Pieper, described the compatibility of the companies. He also took a moment to explain why Copper was a great fit. Copper provides institutional grade security for digital assets.
Swarm it Up
Swarm continues to develop its platform in a manner that separates it from the competition. The firm’s use of a zero-upfront fee structure showcases that this firm is serious about pushing crypto adoption further. You can expect to see a “Swarm” of new projects launched from this platform in the coming months.
TokenSoft Launches Major Wallet Upgrade
This week, the SEC-regulated security token issuance platform, TokenSoft introduced a major upgrade. The new functionality comes in the form of a self-managed wallet for traders. The revamped system promises to be an easy-to-use interface coupled with advanced safety measures. Notably, the upgrade falls in line with TokenSoft’s recent expansions in the market.
Importantly, the new wallet features a less technical user interface. As such, users can easily maintain and manage investments directly from the wallet portal. Additionally, the new wallet integrates a host of regulatory-compliant safety measures, most similar in nature to Ethereum’s ERC-1404 protocol. Also, the wallet includes benefits for issuers as well. For example, there is built-in reporting to simplify auditing systems. Additionally, users receive automated dividend distributions, which also reduces transaction costs.
ITokenSoft added some important security updates to their wallet as well. For accounts that hold over $1 billion in investments, a new Multi-signature system is available. The system utilizes a key mannequin to provide the highest level of protection for your digital assets. Multi-signature wallets provide more protection than traditional wallets. Mainly because there are multiple keys required to complete a transaction.
Discussing the upgrade, TokenSoft CEO, Mason Borda described the excitement surrounding the project. He explained how the new wallet pairs a “safety package” with a simplified UX. This simplification of the STO process is sure to benefit the firm’s 100,000 registered traders.
Additionally, Jordan Davis, Director of Enterprise, described the effect of the upgrade within the financial markets. He stated that these new features apply pressure on traditional financial institutions to reply with a similar product. In turn, all investors benefit because of the new administration instruments. Davis envisions a day where you can easily choose what providers have access to your account, as easy as you choose Netflix shows to watch.
Last Wallet Upgrade
TokenSoft’s last major wallet upgrade came in January 2019. At that time, the firm announced the launch of its Knox Wallet. Impressively, the Knox Wallet was one of the first mobile, cold-storage solutions for securing digital securities.
TokenSoft entered the market in 2017 with the goal to simplify the issuance and management of digital securities on the blockchain, at scale, and within compliance. The San Francisco-based firm currently offers a full suite of security token and tokenization services. Since its inception, the company continued to gain popularity. Today, TokenSoft is one of the most recognizable names in the market.
In December, the firm’s subsidiary, DTAC LLC registered with the SEC as a Transfer Agent. Importantly, the firm also partnered with Ex- Israeli military cybersecurity firm – HUB Security this month. HUB now provides TokenSoft advanced end-to-end encryption protection on USB and Bluetooth devices.
TokenSoft Gains Momentum
TokenSoft continues to make headlines across the sector for its innovative approach to the market. The firm consistently advances its functionality and positioning. You can expect this latest upgrade to further cement TokenSoft as an industry leader.
TokenSoft Partners with Ex-Military Cyber Firm Hub Security
This week, the token issuance platform, TokenSoft made major upgrades to the security of its systems via a partnership with Israel’s ex-military cyber firm Hub Security. The maneuver gives Tokensoft access to some of the most advanced security features in the world. As such, the partnership bolsters the firm’s market positioning in a major way.
Discussing the new partnership, Mason Borda, TokenSoft’s CEO explained his firm’s dedication to customer security as a key priority. Additionally, he spoke on how the current state of the market lacks access to institutional-grade technology solutions for security tokens. Borda stated that his firm was “delighted” to partner with such a reputable security service provider.
Consequently, Tokensoft now offers users top-tier, military-grade protection for their tokens, keys, and assets. The integration gives Tokensoft the most advanced key management solution available in the market today.
Specifically, clients of TokenSoft’s transfer agent, DTAC are now privy to military-grade cybersecurity tactics. These security upgrades include FIPS140-2 Level 4 protection. On top of this protection, TokenSoft now offers a combination of hardware and software solutions to keep your tokens safe. These features include a multi-signature vault, a hardware firewall, and access control. Notably, the platform also integrates a neural network learning system designed to anticipate cyberattacks
Hub Security’s miniHSM solution provides governments, militaries, and companies end-to-end encrypted USB and wireless Bluetooth connectivity. This strategy creates a cryptographic environment for the whole lifecycle of digital assets. Developers believe this approach will help curb attacks from organized crime and hackers in the future.
Additionally, TokenSoft now gains access to Hub’s management solution. This suite of products includes Hub Security’s HSM device and independent OS for the encryption, management, and distribution of keys.
Speaking on the development, Eyal Moshe CEO of Hub Security touted the reasoning behind an end-to-end approach to the development and delivery of hardware and software components. He described why this strategy provides the highest level of security throughout the entire product lifecycle. Interestingly, he pointed out that the Covid-19 pandemic prevents people from “operating the on-premise security systems that controls large amounts of assets.”
Tokensoft entered the market in 2017 with the goal to simplify the processes involved for companies seeking to issue and manage digital securities on the blockchain, at scale, and within compliance. Recently, the firm acquired a stake in an SEC-regulated firm in a move that allows the company to operate as a registered broker-dealer in the US.
Hub Security entered the market on Nov 1, 2017. The firm offers hardware security solutions for regulation, privacy, fintech, cloud, and blockchain systems. Specifically, the company specializes in blockchain, cybersecurity, financial services, FinTech, information technology, and privacy products.
TokenSoft – Security First
TokenSoft is now ready to continue on its path towards tokenizing the global markets. This company made the right move when it decided to beef up its security via Hub. Now, the platform can offer its users the highest level of protection available. This added protection is critical when you consider the number of attacks these platforms continue to encounter. Hopefully, the new security measures will prove effective at protecting users tokens in the future.
Blockpulse – Lemonway Receive Registration from ACPR Banque de France
This week, the French tokenization startup Blockpulse received registration from the ACPR Bank of France. The regulatory approval allows Blockpulse to move forward with its tokenization platform. Importantly, the registration makes Blockpulse the first STO platform to achieve registration from French financial regulators. Now, French investors have access to all the benefits provided by tokenized securities
As a registered STO platform, Blockpulse gains significant rights in the marketplace. For one, the registration with ACPR Banque de France allows them to add functionalities concerning the Euro. Specifically, the registration allows Blockpulse to manage euro payments for financial instruments, transfers, and token issuances.
In a recent interview, Blockpulse COO Marien Irzykiewicz spoke on his firm’s achievements. He described how the company registered at ACPR Banque de France with its partner, Lemonway, to bring the concept to reality. Importantly, Lemonway is a leading European digital payment solution provider for investment platforms.
The partnership allows the firm to simplify its business systems, For example, the strategy provides the firm the ability to manage both cash and securities flows on the same blockchain. Additionally, the company plans to automatize critical actions through the use of smart contracts. These actions could include payment disbursements, investor verifications, and token issuances.
Blockpulse entered the market in 2018 with the goal to create an all-in-one box of tools to better serve the STO community. Today, this privately owned company focuses on solutions to raise funds, associate employees and manage investors. Notably, French companies can manage their fundraising in a manner that was previously not possible using the platform. As such, the platform allows companies to create legal documentation, electronic signatures, online payments, cap tables and registry of share movements directly.
For its part, Lemonway provides Blockpulse with top-tier KYC / LCBFT services. Recently, Blockpulse developers described the partnership as a success. They explained that the partnership brings more liquid management to the market. Also, it ensures that Blockport meets all the EU’s stringent securities regulations.
At this time, Blockpulse is only available to French residents. The company’s CEO stated that the firm intends to “expand in the European Union through Benelux and Spain” in the coming months. For now, investors outside of France can participate in sales, but only meeting pending regulatory restrictions.
French Pivot to Blockchain
As of last year, French regulators began an open policy towards STO integration. Notably, in September 2019, the French Central Bank Governor, Villeroy de Galhau, stated that the bank was observing tokenized securities with “great interests.” Earlier in the same year, Societe Generale, the third-largest bank in the country, issued a €100 million tokenized bond. This latest registration demonstrates that regulators are ready to push blockchain integration to new heights.
Feel the Blockpulse
Blockpulse receiving registration from the ACPR Banque de France is a huge step forward for the entire EU market. The French STO sector could use this momentum to catch up to its EU counterparts in the coming months. As it stands today, the company has the positioning to become the premier STO platform in the country.
- Kin Releases its Transparency Report
- Raiffeisen Bank in Cooperation with FinTech Billon to Pilot Digitized National Currency
- Security Token Group Study Reveals Investors Hedging US Markets with Security Tokens
- France’s Central Bank Completes Security Issuance with Digital Euros
- DTCC Unveils Two Security Token Research Platforms