Security Token News
The Top 3 Government Security Token Programs (Global Edition)
Security tokens continue to see increased adoption in the cryptospace. The added protections built into these unique tokens make them ideal for use by both governments and traditional investment firms seeking to enter the blockchain space in a cautious manner.
Investors aren’t the only ones to realize the capabilities of these regulated tokens. Today, there are a growing number of government programs in the works that utilize security tokens. Governments from across the globe continue to develop systems that integrate security tokens as a core component of the protocol’s functionality. Below are the top three governmental security token programs currently under the microscope.
Singapore Settlement System
The government of Singapore is a strong supporter of cryptocurrencies. Government officials took a pro-active role in the market by creating favorable blockchain regulations. As a result, the country is now home to some key players in the industry such as the cryptocurrency NEM.
Singapore via Variety
Earlier in the month, the government revealed an automated payment platform that will allow users to settle security token transactions across multiple blockchains. The program involved numerous parties including the Monetary Authority of Singapore (MAS), Singapore Exchange, and Nasdaq. Nasdaq’s senior vice president, Magnus Haglind spoke on the magnitude of the project. The ability to complete cross chain transactions is a “major step” in the integration of blockchain tech into the traditional market.
US Department of Defense
The US Depart of Defense is interested in blockchain technology in a major way. DARPA, the Defense Advanced Research Projects Agency plans a blockchain workshop for February 2019. According to a public post, DARPA is curious about utilizing the new technology in a couple of different ways including for logistical support, supply chain management, and crowdfunding operations.
DARPA is interested in using security tokens to crowdfund certain aspects of their operations. The concept is revolutionary, and it could lead to a boost in the already multi-trillion-dollar budget the organization enjoys. Additionally, DARPA wants to study the possibilities of a cryptocurrency communication network and a blockchain-based supply chain management system.
Russia Tokenization
A joint venture between The National Settlement Depository (NSD) and the Russian state-owned bank, Sberbank CIB is currently underway to explore the full possibilities of tokenizing assets. Security tokens are ideal for the tokenization of major assets that require that government regulations be adhered to. The intent is to tokenize items such as securities, private equity, and real estate,
One of the main goals of the project is to bring more transparency and consumer protection into the Russian cryptomarket. The hope is that security tokens can bridge the gap between the cryptomarket and traditional investors. The program began over the summer and is currently in the beta testing stage.
It’s Just the Beginning
All of these programs showcase how important security tokens are to the development of the crypto space. The security token sector continues to see more participants as the unique benefits of these tokens come to light. You can expect to see many more government security token projects enter the market in the near future.
The largest decentralized exchange in the world, Vtoken, obtained its SEC filing from the United States Treasury Department this week. The firm took to the world-famous NASDAQ billboard in Time Square to celebrate the move. This is the second time the company graced this iconic attraction seen by millions. Also, the move symbolizes further blockchain integration into traditional securities markets.
Speaking on these developments, Vtoken’s Chief Advisor to the Asia Pacific Region explained how his firm plans to cultivate a robust blockchain ecosystem. He took moment to discuss recent global developments in the security token space. Specifically, he touched on how both Chinese and American markets experienced a huge surge in blockchain-based firms.
Vtoken Platform
The Vtoken combines the regulatory protections found in the traditional securities markets with the efficiency of a blockchain -based system. The company offers transfer agents flexible solutions to many of the current issues plaguing the securities markets.
For example, traditional securities can take three days for trades to complete. This delay leaves investors in a less than optimal position. In contrast, Vtoken’s blockchain-based system can complete trades in a matter of hours. Consequently, the platform enables a more nimble trading experience.
Vtoken via Homepage
Real World Experience
Vtoken is a unique hybrid of technology, compliance, experience, and professional customer service. The firm handles a wide range of clients but specializes in Regulation A transactions. To date, Vtoken’s clients include NASDAQ, NYSE, OTC-listed firms, IPO-issuers, and private investors.
Vtoken’s strategy is unique in that the firm created a complete blockchain ecosystem. Here, investors can get all the information they need to host a compliant STO. The company offers a full range of solutions for both enterprise and private investors. These services include pre and post token issuance and management, smart contract programming, and ownership protection.
The latter feature is unique to V-token. This functionality allows investors to restore lost or stolen tokens, an option not usually available in the blockchain space. More importantly, Vtoken is now in a very exclusive class of decentralized exchanges registered with the SEC.
Vtoken
Vtoken shares many of its core developers with Ripple. Additionally, Vtoken utilizes graphene underlying technology. The token has a trading gateway that is similar to Stellar Lumens. This enables the platform to maintain optimal transaction speeds. Currently, Vtoken can process transactions faster than the third-generation crypto EOS.
Partnerships
Last month, Vtoken made headlines after forming a strategic partnership with blockchain payment platform PayDex. The PayDex platform functions on Vtoken’s public blockchain. The system provides global crypto settlement with support for BTC, ETH, VToken, USDT, VRT, YEC, EOS, LTC, and VUST. PayDex seeks to bring crypto payments to the masses through a simplistic mobile interface.
Vtoken Ecosystem
Vtoken’s all-inclusive approach to the market is crucial to its overall strategy. V-Token provides users with everything they need to become a player in the security token market. You can expect to see this firm continue to make headlines s the platform expands in the coming months.
Secondary Markets
‘Making Illiquid Assets Liquid’ – That is the guiding sentiment behind AlphaPoint, a young company which utilizes blockchain to facilitate tokenization.
This idea is one step closer to becoming a reality, as AlphaPoint has just announced a partnership with Elevated Returns – A forward thinking company which specializes in real-estate.
In this announcement, the pair has indicated that they will be developing a secondary market for trading digital securities backed by real-estate. It is through secondary markets that traditionally illiquid assets, such as real-estate, will become easily tradable – all the while opening up fractionalized ownership, and opportunity for exposure to retail investors.
Elevated Returns will focus these efforts on Asian markets, following their expansion into the region roughly one month ago. At the time, the company acquired a large share in a Thai broker-dealer – a move allowing for them to commence operations through previously attained licensure.
Commentary
In their press release, Stephane De Baets, President of Elevated Returns, commented on this development. The following is what he had to say on the matter.
“Elevated Returns prides itself on our reputation as a pioneer in the digital securities space. To that effect, we have a policy to partner with the best in class companies across industry verticals; AlphaPoint’s technology solutions for unlocking digital asset liquidity are unparalleled. Having already demonstrated the capability to integrate with the token standard that we are developing on the Tezos blockchain, AlphaPoint was the clear choice to facilitate the adoption of our tokenized real estate initiatives.”
AlphaPoint
AlphaPoint is a United States based company that was founded in 2013. With their sights set on ‘making illiquid assets liquid’, AlphaPoint has successfully serviced global customer through their various service offerings.
Since opening their doors, AlphaPoint has seen their diligent work towards growth land them customers in 5 continents, to date.
Company operations are overseen by CEO, Salil Donde.
Elevated Returns
Elevated Returns is a United States based company, which specializes in investments surrounding real-estate. Recognizing the potential of digital securities, Elevated Returns operates with a goal of acquiring assets viable for tokenization.
One such example was the noteworthy tokenization of the St. Regis Resort; A high-end ski resort that successfully sold digital securities representing ownership within the resort, becoming one of the first to do so.
Company operations are overseen by President, Stephane De Baets.
In Other News
We have detailed developments pertaining to both AlphaPoint and Elevated Returns in the past few months. Check out the following articles to learn a bit more about what each of these companies has been up to in this time.
Laureate Digital Partners with AlphaPoint on New Security Token Exchange
Elevated Returns and Securitize to Utilize Tezos for Digital Securities
Deadline Missed
Today, tZERO issued a statement to their shareholders, commenting on their ongoing investment by Makara Capital, which we previously detailed.
In this statement, they indicate that while this investment is on-going, further delay is unavoidable. After initially setting a mid-April deadline, the due diligence process is simply more time consuming than initially thought.
Commentary
In the update, distributed to its shareholders, Patrick Byrne expressed praise for Makara, while commenting on the tenuous nature of the deal and reassuring readers at the same time. The following are a few excerpts from this statement, highlighting these sentiments.
‘Makara’s due diligence has progressed, and in the course of its due diligence Makara has proven to be a professional and serious fund. Still, the parties will not have a definitive deal in place by the mid-April target.’
‘tZERO plans to continue facilitating Makara’s diligence, but is not under any exclusivity with Makara or GSR and has retained advisors to pursue parallel alternatives. We will update shareholders after tZERO signs definitive documents.’
‘Our retail firm is recovering more dramatically than I anticipated and discussed during our Q4 2018 earnings call. In addition, tZERO is on track to introduce the products described in that phone call. Our intense focus on execution is paying off.’
Many Pots
This news may be slightly disheartening, as it represents, not the first, but second hiccup in the investment process. Despite this setback, tZERO has been on a tear over the last year. They are not being held back by this process.
tZERO has their hands in many pots, with endeavours resulting in the launch of a trailblazing secondary market for digital securities. Beyond this, tZERO has seen progress through adoption, and the awarding of patents.
tZERO
tZERO is a United States based company that was founded by Patrick Byrne. A subsidiary of Overstock, tZERO functions as a platform catering towards the digital securities sector.
Founder, Patrick Byrne, has reiterated his strong belief in digital securities multiple times over the past year. He has gone so far as to shift his entire focus from Overstock to tZERO and its ongoing development. Unmoved by ‘crypto winter’, Patrick Byrne has, in the past, commented to The Wall Street Journal, on the potential of tZERO. He stated, “I don’t care whether tZERO is losing $2 million a month…We think we’ve got cold fusion on the blockchain side.”
In Other News
tZERO is a regular in our news feed, as they have been pivotal in establishing the digital securities sector in its infancy. Below are a few articles detailing past developments pertaining to this impressive and important company.
GSR Capital turns to tZERO for the Tokenization of Cobalt
tZERO Completes Distribution of Security Token
Overstock Repositions Blockchain Executives as tZERO Launches