Global Digital Finance Registry
In a rapidly developing industry, a growing list of companies have recognized a need for, not only uniformity in the interpretation of regulations, but accountability as well. To facilitate these goals, a non-profit organization, known as Global Digital Finance Registry, has been formed. This organization operates under the following mission statement:
‘The global formation and distribution of capital has value to both new market entrants and incumbents in financial services. Global Digital Finance endeavours to drive efficient, fair and transparent crypto asset markets by building a knowledge base and best practice for “Truly Digital” finance and the benefits tokens can bring all market participants.’
Simply put, its purpose is to create a community comprised of industry participants, in an effort to foster industry growth in a fair and transparent manner.
Members of the registry are able to indicate their adherence to a variety of code-of-conducts, outlined by the GDF. Tokeny in particular attests to Codes 1,2, and 3.
- Overarching Principles
- Principles for Token Sales
- Principles for Token Platforms
- Principles for Funds and Fund Managers
- Principles for Ratings Websites
The GDF launched in 2018, and maintains headquarters in London, United Kingdom.
The founding members of the Global Digital Finance Registry were announced roughly 6 months ago. These members consisted of the following companies.
- DLA Piper
- Hogan Lovells
To meet the goals of the endeavour, new participants are needed to ensure continued expansion and adoption of the code of conduct. Upon applying for membership, entrants are able to indicate which of the 5 codes-of-conduct they pledge an adherence to.
We reached out to Tokeny for comment on their decision to join this registry, and what benefits it will afford both Tokeny and their clients.
Luc Falempin stated,
“In order for digital securities to succeed it is essential there is a standardised association across global jurisdictions and regulators. By joining the GDF, we are helping drive this digitisation of capital markets by contributing to a community that is helping shape this standardisation of conduct.” He continued, “We are joining a community of policymakers, regulators, bankers and other market participants to encourage and develop best practices in the issuance of digital securities.”
Tokeny had to following to say upon announcing their participation in the GDF. It was stated,
“For digital assets to gain mainstream adoption it’s imperative there is a co-ordinated response across global regulators and jurisdictions. Key to this is standardised terminology. To help encourage this we’ve registered with the Global Digital Finance Code of Conduct, an industry-led initiative driving best practices to enable the digital assets industry to flourish.”
Tokeny is a Luxembourg based company that was founded in 2017. CEO, Luc Falempin, has guided this young company along its path towards transforming digital securities. The Tokeny platform has seen modest levels of adoption in recent months, as they have played host to a variety of STOs. These events have/will see Blockport, VR Bank, and others tokenize and distribute assets.
In Other News
The Global Digital Finance Registry is not the only grouping of companies hoping to secure a bright future for digital securities. In recent months, we have seen the formation of the ‘Millbrook Accord’, and the ‘Digital Securities Alliance’, among others. Here are a couple of articles detailing each of these groups.
Agora Innovation Secures Funding for IVE.ONE Platform
This week, the security token issuance platform, Agora Innovation announced that the firm successfully completed a seven-digit pre-series A investment round. Notably, the main investor was FinLab EOS VC. Now, Agora Innovation is set to expand its capabilities. Specifically, Agora seeks to launch its highly-anticipated IVE.ONE security token ecosystem in the coming weeks. The news showcases more demand for tokenization platforms within the EU and Asian markets, as well as, a major milestone for the IVE.ONE team.
IVE.ONE is a regulated issuing and investment platform for trading tokenized securities. Importantly, the platform enables the global trading of digitized securities within the legal framework of a specific region. The use of blockchain technology provides more efficiency in the sector because it enables developers to integrate compliance mechanisms directly into the platform’s tokens.
One of the main concerns for developers of the IVE.ONE platform was scalability. Scalability continues to plague Proof-of-Work blockchains such as Bitcoin. In order for large blockchain adoption to increase, projects need to emerge with the highest scalability possible. As such, IVE.ONE utilizes a unique dual-blockchain setup. The platform can accommodate both ERC20 and EOSIO blockchain tokens.
IVE.ONE promises to deliver some unique and powerful tools to the market. The platform enables advanced tokenization and investments into regulated securities. On top of the tokenization benefits, the firm also provides a proprietary verified digital identities system.
This system utilizes a blockchain verification system to link users to their respective blockchain wallet addresses. Once linked, the platform employs a rule engine to ensure all the tokens remain aligned with the varying national regulatory requirements set forth.
Agora Innovation – Dual Blockchain Approach
Discussing the new platform’s capabilities, Evgeny Matershev, Agora Co-Founder and Chief Product Officer described the excitement felt by developers after gaining access to the EOS blockchain. Matershev described how the dual-blockchain approach provides greater flexibility for issuers and investors. Additionally, he spoke on how recent updates to EOSIO can ensure the future scalability of the entire project.
Also, Phong Dao, Agora Co-Founder, and CEO chimed in on the status of the project. He described how his firm utilized a seed investment from HTGF one year ago to bring the project to fruition. Notably, he touted how the project provides a better ecosystem for digital assets on the blockchain
Dao explained that the firm will now expand marketing and sales activities into the Asian market. He also stated that the eventual goal is to expand into the EU within the coming year. Lastly, he spoke on the firm’s next moves. These maneuvers include an STO scheduled for the second quarter of 2020.
FinLab EOS VC
Importantly, FinLab EOS VC was the main investor during this funding round. FinLab EOS VC is one of the first and largest investors focused specifically on financial services technologies in the EU market. Also, Stefan Schütze, Managing Director of FinLab EOS VC Fund spoke on how the platform incorporates a complete and automated regulatory framework with an easy to navigate interface.
IVE.ONE is Set to Launch
Considering the added usability and functionality IVE.ONE promises to investors and issuers, there are sure to be some significant advantages over the competition. You can expect to hear more about this exciting project as the launch date approaches.
Australian Securities Exchange (ASX) Prepares Blockchain Clearing System Launch
This week, executives from the Australian Securities Exchange ASX made some encouraging statements regarding the firm’s shift towards blockchain technology. The company has spent several years contemplating how to best upgrade its current outdated clearing and settlement system – CHESS. Now, thanks to a team of ingenuitive developers, the entire Australian securities market will now enjoy more efficiency, transparency, and security.
Importantly, ASX was one of the first major securities firms to embrace blockchain technology in the country. Over the last few years, the company shifted its attention to tokenization and security tokens. These technologies are far more efficient than the current business systems in place.
Discussing the upgrade in a recent interview, ASX CEO, Dominic Stevens described the excitement surrounding the entire project. He explained how the new system provides the entire industry with a more streamlined alternative. Specifically, Stevens touted the improved clearing and settlement times the system boasts.
Traditionally, clearing and settlement can take upwards to a week to complete. This delay is due to the involvement of a host of third-party verification systems. All of which add to the total costs of the transaction. In comparison, tokenized securities can settle in hours because they operate in a trustless manner that requires no other verification.
Stevens also spoke on the power of risk management and process automation that the new system brings to the market. In terms of risk management, security tokens create liquidity in the sector. As such, this liquidity provides investors with more options. Additionally, smart contracts provide issuers with the ability to integrate certain processes and regulatory requirements directly into a token’s protocol.
In order to create a new clearing system that could accomplish all the required tasks, ASX made a strategic partnership with the US-based firm Digital Asset (DA). For its part, DA agreed to create and manage the blockchain underpinnings of the platform.
DA is a blockchain infrastructure provider that serves enterprise-level clientele. The firm is well-recognized in the sector. Previously, DA made global headlines after the firm secured $35 million in Series C financing from ASX in December 2019. Today, you can see that funding went to good use.
ASX Prepares to Launch New System
According to company documentation, ASX seeks to begin industry testing as early as July 2020. Unfortunately, the firm provided no additional information as to exactly how, and who would participate, in the new system’s launch.
The land down under continues to shine in the blockchain realm. Ever since government officials proclaimed cryptocurrency legal way back in 2017, the entire industry has experienced growth. Today, Australia holds the registration to 312 exchanges.
ASX – Taking the Australian Blockchain Market to New Heights
This latest news is sure to spark the interests of securities firms globally. Many of these firms have been on the fence regarding blockchain integration. For now, ASX is set to take a leading role in the global market pending a successful launch of its new clearing system.
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.