Templum Continues Expansion
The financial technology company Templum continues to garner more market positioning. The firm offers the primary issuance and secondary trading of private digital securities. As part of this strategy, Templum recently hired Bernard Van der Lande as Chief Issuance Officer.
New Team Members
Van der Lande has the experience to take Templum to new heights. He is experienced in traditional, cross-border, and digital capital formation strategies according to a recent press release. Prior to his decision to join the Templum team, Van der Lande was the Managing Director of Easterly LLC, as well as, for CBRE Capital Advisors. His experience and network will prove to be priceless as Templum accelerates its strategy to match the growing market trends.
In a past interview, Templum CEO Vincent Molinari explained that the firm seeks to create new standards across the digital securities sector. In order to accomplish this hefty task, Templum developers must help create new infrastructure for these securities, both legally and technically.
Interestingly, the firm petitioned the SEC in April 2019 to provide more clarity regarding mining activities and how they correlate to regulations regarding digital securities. The letter points out that miners, technically, are sending and preparing transaction confirmations when adding blocks to the blockchain. The company wants to ensure that miners are not violating current regulations because they are “effecting transactions.”
As previously reported, Templum partnered with the private blockchain development firm, Symbiont, to build a purpose built chain to handle the company's growing concerns regarding scaling. Symbiont was a wise choice because the firm already has ties with Nasdaq and CitiGroup. Notably, both of these firms invested Templum during its ICO which raised $20 million.
Originally, Templum allowed its users to choose the blockchain they wanted to launch their securities on. Consequently, problems began to arise when clients continued to choose high traffic blockchain such as Ethereum. The ERC-20 token standard is by far the most popular in the space.
Speaking on these concerns, co-founder, Christopher Pallotta, took a moment to explain why using public blockchains hinders the platform's performance. He described how during times of mass congestion, trading is hampered. Specifically, he described how during Ethereum's CryptoKitties craze, transaction delays occurred. A public blockchain can “slow down or stop capacity” during a ten million dollar transaction stated Pallotta.
Additionally, maintaining compliance is much more difficult on a public blockchain. Since anyone can utilize these blockchains, it's nearly impossible to know who are the counterparties in your transaction. Obviously, this is a problem when you are dealing with regulated industries such as securities.
Templum Markets entered the market in September 2017 as a blockchain-powered fintech company focused on secondary trading of digital securities. The firm is based out of New York with additional offices located across the Northeastern US. The company lists Christopher Pallotta and Vincent Molinari as its founders.
A Bright Future
Given the firm's forward-looking stance and experience level, it's easy to imagine a scenario where Templum becomes a major player in the digital securities arena. You should expect to see many more developments from this team as their platform steams ahead.