Tokenization just got a lot easier thanks to the innovative minds behind the Swarm Dapp release. This revolutionary platform allows users to easily, and freely, create and issue security tokens at will. The news shows a shift in strategy from one of the most respected players in the market. It also demonstrates the start of a more robust issuance sector.
SWARM Changes the Game
This week, SWARM developers proved that they are serious about decentralization with their latest release of major upgrades to their smart contract suite. Built atop those smart contracts, the SWARM App by Swarm Capital is a market first in many ways. For one, security token issuance has long been a technically savvy business sector. Now that anyone can create security tokens, market innovation is no longer tethered to a person’s technical know-how. Basically, SWARM just changed the game in a major way.
Notably, Swarm Capital is the first provider to create and release a tokenization UI designed for third-party users. The company’s strategy follows the overall growing trend of B2B2B (businesses that sell services to businesses, that sell services to businesses) service providers taking the lead in the market.
Easy to Use
Swarm’s new Dapp includes a feature-rich UI (user interface) that simplifies the entire token issuance process. Notably, beginners need no training to navigate the free UI. The platform guides users throughout the entire process including classifying the token. The Dapp allows you to configure, mint, and issue tokens at no cost.
Interestingly, Swarm Capital didn’t make the Dapp compatible with just newbies in the blockchain sector. The Dapp has a host of advanced features designed to service the needs of developers, consultants, and advisors. Blockchain experts can even program smart contracts directly within the platform.
The robust smart contract capabilities of the Dapp allow programmers to integrate a wide array of regulatory stipulations into the tokens. These features include the ability to add transfer restriction rules, account freeze, and contract freeze stipulations. You can even couple real-world assets to your security token via the platform.
Swarm White Label
Perhaps one of the best features of the new Dapp is the ability to white label the services. Service providers can use the open tools to build custom UIs for clients. By allowing other service providers to profit off of its UI, the company cements its positioning in the market moving forward.
How Swarm Dapp Works
The Swarm Dapp employs a set of pre-programmed smart contracts. These smart contracts create an alterable framework for companies to build upon. Basically, anyone with a little technical know-how can create a security token using the easy to follow instructions.
Once a user completes the token creation process, the token is then sent to the Ethereum Testnet. Here, developers can experiment with their new tokens in a safe and open environment. Once an issuer completes testing the token’s functionality, publishing the token to the Ethereum Mainnet only takes a few clicks.
Additionally, Swarm’s Stake-to-Issue tokenomics allows users to create and issue tokens with zero fees. Users simply stake their SWM tokens to initiate the contract. You can retrieve your staked SWM simply by completing a burn function with the security tokens.
The SRC20 token standard is a variation on the popular ERC-20 token standard. As such, the token retains the highest level of interoperability available in the market. Importantly, these tokens remain compliant throughout the entire token’s lifecycle, including during secondary trading.
Swarm’s Bright Future
From the looks of these developments, Swarm intends to be a staple in the tokenization community for years to come. As such, the company announced that all tokens issued on the platform will be compatible with upcoming swarm fundraising events. Also, developers seek to include a fundraising model in their next release. For now, Swarm just upped the ante in the security token sector.
Bankhaus von der Heydt Unveils Blockchain Strategy
This week, the German Bank von der Heyd stunned the EU banking community after revealing plans to issue security tokens and offer custodial services in the coming weeks. The news demonstrates further integration of blockchain technology among the EU’s traditional banking sector, as well as, a desire by Bankhaus von der Heydt to become the industry leader.
News of the new services first broke via a press release. In the release, the private bank shed some light on the project and the progress to date. Company documents revealed that the bank completed its first custodial transactions successfully this month. Additionally, the blog gave some insight into the bank’s future intentions.
According to reports, Bankhaus von der Heydt will provide commercial clients the ability to tokenize assets via the platform. In this way, bank officials seek to become a major force in the German blockchain sector. Additionally, the bank has plans to issue a EURO-backed stablecoin in the coming months to supplement its digital asset economy.
The new products make Bankhaus von der Heydt the first German bank to provide a digital asset custody solution to clients. As such, the firm hopes to achieve a significant strategic advantage over the competition. Discussing the new strategy Bank von der Heydt managing director, Philipp Doppelhammer spoke on his firm’s work. He explained that bank researchers spent years observing the blockchain space. This research helped the firm to design relevant products to the current state of the market.
Doppelhammer also explained why these products provide his firm with outstanding added value. As the only German bank to offer licensed digital asset custodial services, Bankhaus von der Heydt is positioned to be a major player in the EU markets. Lastly, he took a moment to let the public know that these products are now ready for the market from a regulatory and technological perspective.
In order to ensure the success of the venture, Bank von der Heydt collaborated with FinTech and blockchain services provider, Bitbond. For its part, Bitbond provided the technical infrastructure surrounding the custodial aspects of the strategy. Additionally, the bank utilized Bitbond’s proprietary technology to develop several asset structuring and asset servicing products as well.
Speaking on the partnership, Radoslav Albrecht, CEO, and founder of Bitbond explained how his firm continues to work with several banks and financial intermediaries to expand the capabilities of the platform. He also touched on the important benefits tokenization brings to the market, such as liquidity.
Additionally, Albrecht described the feeling of excitement surrounding the project. Here he pointed out that this was the first project to use blockchain technology in the area of securitization and private placements in the country. He also stated that his firm was “pleased to cooperate” with the bank, which he labeled a proven industry expert.
Bankhaus von der Heydt Takes the Lead
It now appears that Bankhaus von der Heydt will have a strong positioning in the market moving forward. This firm continues to utilize its unique stance to keep up-to-date on all the latest FinTech trends. You can expect to hear a lot more from this group as its new projects gain popularity in the coming weeks.
CFTC to Give its Stance on GRAM Token Classification
This month, the Securities and Exchange Commission (SEC) stepped up its battle against the mobile messaging giant Telegram. For months, the two groups have been enthralled in a trial to determine the classification of Telegram’s GRAM token. This week, in an attempt to break the legal stalemate, the SEC reached out to the Commodity Futures Trading Commission (CFTC) to hear its stance on the project.
According to reports, a letter was sent from the federal judge presiding over the case, Kevin Castel, directly to the Office of General Counsel of the United States Commodities Futures Trading Commission. Specifically, the letter asks the organization to determine if the GRAM token is a security or not.
As such, the importance of this document can’t be overstated. The court’s determination will have a direct effect on the classification of certain types of cryptocurrencies within the United States moving forward. For its part, the SEC argues that the GRAM token is, in fact, a security.
Regulators stated that the entire crowdfunding event, which raised around $1.7 billion, violated the Securities Act of 1933. On top of the claim, SEC alleges that Telegram participated in the unauthorized sale of securities. Lastly, the SEC also claims the group convoluted the difference between a purchaser’s investment in the digital asset and the delivery of the asset itself.
Telegram Refutes the Charges – GRAM
Despite the heavy-handed approach the SEC has taken, Telegram continues to stand its ground. The firm insists that its GRAM token is a commodity. As such, Telegram stated that GRAM tokens do not fall under the SEC’s jurisdiction.
Recent court filings shed some light on the details of Telegrams 2018 ICO. According to these documents, Telegram raised $1.7 billion from 171 investors. Of these investors, $424.5M came from 39 US-based investors. The remaining $1.28 billion in funding came from international participation from 132 additional investors.
What is the GRAM Token?
The GRAM token project originated with the goal to provide Telegram users with an online currency to supplement the Telegram platform. Developers envisioned a cryptocurrency that saw global usage among Telegram’s 300 million subscribers. According to company executives, the hope was to spur the growth of a new economy that would use Telegram as the man medium of communication.
So Are GRAM Tokens Security Tokens?
While the SEC continues to drive home their perspective on Telegram’s blockchain projects, the cryptocommunity awaits a final answer. As it stands today, several filings were made with no relevant determinations yet. Telegram executives and regulators are keen to the fact that this case would set a major precedent across the entire US blockchain sector.
When you consider the ramification of the Telegram trial, it’s easy to see why company executives are not willing to bow to the SEC’s pressure. For one, the firm has billions in funding to fight a long-drawn-out court battle. Additionally, Telegram executives have put forth a lot of effort into the creation and maintenance of the GRAM ecosystem. To lose these funds, would be a huge hit for the firm.
Securitize Receives Backing from Sony
In a sign of the changing times, the Japanese conglomerate Sony announced an investment into the security token issuance platform, Securitize. Sony now joins a long list of global tech giants entering the blockchain sector. This latest maneuver demonstrates the maturing of the Japanese security token market, as well as, a major milestone for Securitize.
Discussing the monumental achievement, Securitize CEO and co-founder Carlos Domingo spoke on what the investment means to the industry. He explained that Sony’s decision validates Securitize as one of the chief “architects of digital capital markets.” He also touched on Sony’s coveted brand and how the firm’s reputation is sure to bolster further interests in the security token sector.
Sony Financial Ventures (SFV)
Sony made its investment into Securitize via one of its main subsidiaries – SFV.GP. Notably, SFV.GP’s management responsibilities are split between Sony Financial Ventures (SFV) and Global Brain. Speaking On the news, SFV director Junji Nakamura explained the new capabilities blockchain tech brings to the table. He described the ability to create new asset classes and add liquidity to the market. Finally, he welcomed the challenges that his firm will encounter on their journey.
SFV is part of the Sony Financial Group. The Tokyo-based Sony Financial Group is a much larger financial services firm that includes numerous holdings on behalf of Sony. These holdings include Sony Life Insurance, Sony Assurance, Sony Bank, Sony Payment Services, and Sony Lifecare, just to name a few.
The Sony Financial Group has a reputation for investing in startups with the potential to disrupt markets. Currently, the firm has investments in Asia, North America, and Europe. These investments span the gambit of upending technologies including artificial intelligence (AI), the Internet of Things (IoT), and robotics.
The decision to invest in Securitize by Sony comes on the heels of a successful funding round for the firm. Securitize secured $14 million in investment funds from a wide variety of global investors. These investors included Nomura Holdings, MUFG Innovation Partners, Santander InnoVentures, and Blockchain Capital.
Securitize Making Moves
This year started off with a bang for Securitize. In January, the firm finalized a deal with AltoIRA. This deal was a major milestone for the entire security token sector because it was the first time that a platform received approval to allow US investors to invest in digital assets directly from their IRA. This momentum now continues with Sony jumping on board.
A Leader in the Blockchain Sector
Its been exciting to watch Securitize develop over the last few years. The firm has gone from a concept to a major player in the market. Today, Securitize is one of the most respected names in the game. Its no doubt that this stellar reputation is what caught Sony’s attention.
One thing is for sure, considering the level of interests Securitize garnished with this latest investor, its goal to modernize the capital markets is is in full swing.
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