In a recent press release, tZERO has announced that it has finished distributing their native token. This token goes by ‘TZROP’, and is known as a digital security – representing ownership in tZERO itself.
While tZERO finished the token creation process months ago, per regulations, it was mandated that they remain in lock-up for a 90-day period. During this time, tokens were to be held by a third party custodial service. Finally, this 90-day lockup came to an end on January 10th, resulting in the aforementioned distribution and press release.
This issuance process comes months after tZERO completed a wildly successful security token offering, or ‘STO’. For example, taking place over a roughly 2 month span in mid-2018, tZERO was able to raise $134 million USD. In addition, this raise was made possible through investments seen from over 1000 parties worldwide.
Commentary on the Issuance
Multiple representatives from tZERO spoke on the importance of this token issuance.
tZERO Executive Chairman, Patrick Byrne, stated, “The issuance of the world’s first public cryptosecurity, OSTKP, in 2016 was tZERO’s Chuck Yeager moment: we broke the speed of sound by introducing the concept of real-time trade settlement. Today marks our Yuri Gagarin moment, where we leave behind the confines of the known world of traditional capital markets and take the first steps towards a new market powered by blockchain.”
tZERO CEO, Saum Noursalehi, stated, “This is one of the first Security Token Offerings on a decentralized public network, and was conducted in full compliance with the U.S. securities laws…This is an exciting milestone for tZERO, and we are even more enthusiastic about the opportunities this will create for private and public companies wishing to raise capital through security token offerings, and for investors who wish to trade those securities.”
The next step to be taken by tZERO, and the most anticipated by investors, will be the launch of a Security Tokens Exchange. The company originally launched a prototype of this platform on April 9th of 2018. However, it is anticipated that a full launch will occur midway through 2019.
The launch of this platform will facilitate trading via secondary markets. Thereby, imbuing new levels of liquidity to previously illiquid assets.
We have recently reported on progress being made by tZERO. For instance, here are a look at a few noteworthy events from recent days.
tZERO is based out of New York, and is a subsidiary of Overstock.com. Each are products of Patrick Byrne’s, who has recently noted that he will be increasing his focus on the development of tZERO. Above all, this subsidiary acts as a platform to facilitate various services aimed towards security tokens.
Neufund Preps for GREYP Token Sale Upon FMA Approval
FMA Approval in Liechtenstein
In a decision that was long awaited, Neufund has been given more than just the approval to host an upcoming GREYP token sale. The tokenization platform was given the greenlight to host all such offerings, moving forward. This authorization came on behalf of the Financial Market Authority (FMA) in Liechtenstein.
This decision will have huge ramifications for Neufund, as they immediately become one of the few, if not the only, entity that is able to offer such flexibility. This will primarily be seen through their ability to open token sales to a broader range of investors, as minimum purchases can be as low as €10.
Neufund indicates that with the approval of the FMA, they have various token events in the pipeline, spanning various countries. They specifically note India, Croatia, Germany, and Belgium as a few of these.
Go for Launch
GREYP is a smart-mobility company, which strives to develop not only next-gen hardware, but to develop the infrastructure surrounding a ride sharing e-bike platform, enabled through IoT.
With regards to GREYP, in particular, the sale will see Neufund sell and issue digital securities on behalf of the former, which imbue various rights upon their holders. This includes, not only equity within GREYP, but, both, voting rights and dividend rights.
For the finer details on what the tokens entail, check out the Neufund listing page HERE.
Upon announcing this development, representatives from, each, the government and Neufund, took the time to comment.
Adrian Hasler, Prime Minister of Liechtenstein, stated,
“I am pleased that Neufund has decided on Liechtenstein. This shows that Liechtenstein, with its open attitude towards new technologies, is perceived as an attractive location for innovative business models.”
Zoe Adamovicz, CEO of Neufund, stated,
“Today, Neufund delivers on its promise to democratize access to funding for entrepreneurs globally and enable anyone to access most innovative investment opportunities with ease, in a compliant and secure environment. It’s a big day – not just for Neufund, but business and finance communities at large.”
Speaking with Zoe
Earlier this year, we were fortunate to have completed an exclusive interview with Neufund CEO, Zoe Adamovicz. In this discussion we touch on what separates Neufund from the pack, and the benefits of STO-like events.
Neufund was founded in 2016, and maintains headquarters in Berlin, Germany. Above all, the company works to provide a range of services which facilitate tokenization. Neufund was one of the first companies to successfully complete their very own STO in 2019.
CEO, Zoe Adamovicz, currently oversees company operations.
Based in Croatia, GREYP is a tech company, which is working to usher in the next generation of ‘smart mobility’. While young, GREYP, has the backing of companies such as T-Mobile, Porsche, and others. They also have experience to draw upon, as they are a subsidiary of Rimac Automobiles – manufacturers of high-end electric sports cars.
CEO, Mate Rimac, currently oversees company operations.
Harbor Tokenizes $100 Million in Real Estate Funds on ETH
One of the leading tokenization platforms, Harbor announced this week that they successfully tokenized $100 million in real estate funds. The firm tokenized four major funds with the goal to increase liquidity for investors. The move showcases growing interest by investors towards more liquid alternative investments.
As part of the tokenization, Harbor provides investors with access to an iCAP-branded platform and private marketplace for secondary transfers. Here, investors can trade their securities in full compliance with the SEC. Speaking on the decision, Harbor’s CEO, Josh Stein described the maneuver as the natural evolution.
The tokenized real estate fund includes a mash-up of 17 broker-dealers, a myriad of placement agents, and approximately 1,100 private investors. Importantly, iCAP Equity is the fund’s manager.
iCAP’s CEO, Chris Christenson spoke on the decision in detail in a recent interview. Here he explained why it was important to create the best investment experience possible for his clients. In his words, the best way to accomplish this monumental task was “providing liquidity for them.”
Harbor Tokenizes Funds on Ethereum Blockchain
Harbor chose Ethereum’s ERC-20 standard for the tokenization of the funds. Importantly, the ERC- 20 token standard is the most popular in use today.
More than Issuance
Stein envisions Harbor as more than just an issuance platform. Now, the company seeks to provide businesses with a solid tokenization infrastructure. In this manner, companies can tokenize their existing assets.
Stein explained that the demand for newly issued tokens was far less than previously expected. Interestingly, Harbor noticed that ICO investors were of the speculative nature versus more traditional alternative investments.
Tokenizing Existing Assets
Notably, Harbor discovered that tokenizing the cap tables of existing assets provides a clear benefit to everyone involved – sponsors, placement agents, and investors. They are also more geared towards the traditional investment community.
Harbor Tokenizes Shares to Add Liquidity to the Market
Traditionally, securities investors agree upon a multi-year lockup. Basically, you can’t sell your shares until an agreed-upon date. The problem here is that in many instances, investors need to access those funds for certain reasons prior to the agreed-upon date.
In the traditional system, an investor would have to wait out the years until granted sales access or find an investor willing to take over the waiting period. Harbor’s platform does away with this nonsense and allows investors to trade their tokenized shares as soon as the SEC mandatory one year lockup period ends.
Experience Equals Lessons
Like any true pioneer, hard lessons were part of the learning process. Last year, Harbor attempted to issue tokenized shares in an apartment building. While the concept was solid, discrepancies arose between the mortgage lender. In the end, the deal was scrapped before launch.
Harbor Tokenizes the World
Harbor appears to have the flexibility and forward-thinking needed to adjust to the ever-changing crypto landscape. You can expect to see more major players in the tokenization sector begin to duplicate this strategy in the coming months. For now, Harbor appears to be a step ahead of the curve.
Prometheum Acquires InteliClear Post Trading Systems
The popular security token exchange Prometheum announced the acquisition of the InteliClear clearing system this month. The addition places Prometheum as the front runner to be the first SEC-registered all-inclusive Alternate Trading System (ATS). The news showcases the growing competition in the sector and symbolizes a shift in strategies amongst the top exchanges.
An Industry First
Currently, no ATS has the ability to clear transactions in house. Traditionally, exchanges utilize a third-party clearinghouse to complete trades per the Security Exchange Act (SEA). This process adds time and additional fees to the transaction. Prometheum seeks to speed up the entire process via the InteliClear integration. Now clients can settle transactions in hours versus days.
Discussing the maneuver, Prometheum CEO, Aaron Kaplan called the acquisition a “milestone” for the security token industry. He spoke on why InteliClear’s system is an excellent addition to the company’s portfolio. Finally, he discussed the importance of Prometheum becoming the first end-to-end security token trading solution.
The Prometheum exchange entered the market with the goal to provide users with a complete ecosystem for tokenized securities. The New York-based firm was one of the first SEC approved tokenized securities platforms available to the public. The company originally filed with the SEC back in November 2017.
Today, the platform hosts some of the most notable security tokens ever launched including Lottery. The Lottery STO made headlines after providing investors an opportunity to participate in revenue derived from the company’s gaming platform for charitable fundraising.
Investors now gain access to more value after the InteliClear acquisition. InteliClear provides businesses with a host of helpful pre and post-trade services. The company uses a custom-built transaction engine that enables importation of trades and transactions from multiple sources. These turnkey and custom solutions enable businesses to fulfill their STO ambitions with the least amount of funding necessary.
The InteliClear system supports tokenized equities, options, fixed incomes, mutual funds, money/market products, and of course, tokenized assets. The global network is able to utilize a host of national currencies and can handle real-time, high volume, operations. The platform automatically calculates trade compression, fees, commissions, and billing to simplify the entire process for businesses.
Security Token Sector Gets More Competitive
The security token arena continues to see more competition develop. The recent SEC approval of numerous A+ filings enables platforms such as Prometheum to take its platform to the next level. Today, the number of security token exchanges in operation continues to expand at an impressive rate. Already, the SEC approved Blockstack, the Props Project, and YouNow’s STO platforms this year. After taking over a year to approve some of these projects, the news is welcomed by the cryptocommunity.
Prometheum Leads the Race
Prometheum now has the tools and capabilities to take a strong lead in the developing security token sector. You can expect to hear more from this exchange as it continues on its STO launch course. For now, Prometheum is the only security token exchange to provide such robust functionality in the market.