Syed Hussain is the co-founder and CEO of Liquidity Digital, a blockchain based fintech firm that is building an end-to-end investment banking ecosystem for the digital economy.
Prior to this, Syed had served as the CEO of the Americas for BANKEX, a global blockchain firm focusing on the tokenization of assets; as the Director of the Eastern US for Blueprint Technologies, a digital transformation consultancy
Antoine: You have quite the background in tokenized securities having previously being CEO of BANKEX. Could you tell us a bit about your experience with BANKEX, and how it has prepared you to be the co-founder and CEO of Liquidity Digital?
Syed: In times of struggle, I become stronger. My character is defined not by my successes, but by my reactions to disappointment. BankEx under delivered on its promises to the market. The excess of funding created a lack of focus rather than a platform of support. I have learned. I will apply the knowledge, strength of character and a team that shares my vision, we will succeed.
Antoine: What inspired you get involved in digital securities initially?
Syed: My love for solving problems. I was inspired by the intellectual design of Satoshi’s whitepaper on Bitcoin and was searching for a practical, business use case for this new technology. Digital securities provide me with this stimulation and opportunity to learn an impressive team to grow a solid, revenue generating organization in this new industry.
Antoine: Liquidity Digital is developing a regulatory compliant ecosystem for the creation of digital assets. This is a three-step process which includes Security Structuring, Regulatory Compliance Issuance, and Post Issuance Modules. Could you tell us about the security structuring and how Liquidity Digital handles this?
Syed: We initially consult directly with clients to understand their business needs. Internally we structure a deal that is suitable for their use and will hire outside consultants on a per need basis. We will also refer to third party legal and accounting teams to provide a due diligence analysis of the issuer and then of the security and the structure.
Antoine: The second step is the regulatory compliance which is what many are most concerned about. Can you let us know how Liquidity Digital handles this?
Syed: We will be relying on third party legal on a per issuance basis. Most likely we will be using a combination of Reg D and Reg S offerings.
Antoine: Do you also handle international regulatory compliance?
Syed: Yes, we will be relying on legal counsel as well as broker-dealers who are registered in their operating regions per that local jurisdiction.
Antoine: The third step is the Post Issuance models. Is this managing cap tables? What else does it involve?
Syed: Yes, cap table is part of post-issuance. As is tax reporting, investor relations, voting rights management, dividend distributions and buybacks. What we do not do is secondary trading. For this service, we will be relying on a network of partners who are registered to handle digital securities in their jurisdiction.
Antoine: For a company who is interested in signing up with Liquidity Digital. What do they need to have ready before they approach you?
Syed: The ability to pass audit by a big four accounting firm. $150,000 in fees to Liquidity Digital due before raising capital to cover our advisory and technology costs. Another $200k – $300k set aside to create offering documents and for marketing and roadshow expenses.
Antoine: Are you currently only accepting United States clients? Are there restrictions on where corporations should be incorporated?
Syed: No, however we prefer US based clients due to the higher reporting and compliance standards. For clients incorporated outside of the US they would have to be able to also pass third party auditing from a large US-based accounting firm.
Antoine: Is there anything else that you would like to tell us about Liquidity Digital?
Syed: We eat securities for breakfast and shit them out as digital blocks.
To learn more visit Liquidity Digital.