Recognizing the need, and potential, for services surrounding custody of digital assets, Koine has recently announced their intention to host a $50 million equity raise.
The goal of this move is to facilitate, not only global growth, but the expansion of services offered through their platform.
In an effort to ensure their success, Koine has turned to US Capital Global Securities, placing the company on retainer as a ‘lead financial advisor’.
In the past, we have reported on US Capital Global Securities performing similar roles with other companies involved in the digital securities sector. One example of this, was their role as a placement agent in the CityBlock DSO.
While their suite of services offered will surely grow in time, Koine notes the following current capabilities:
- Custody of Digital Assets
- Real-time Settlement
- FIAT storage and payment gateways
- Online Access & API Connectivity
Upon announcing their partnership, representatives from each, US Capital Global and Koine, took the time to comment. The following is what each had to say on the matter.
Hugh Hughes, CEO of Koine, stated,
“Market reaction to Koine’s scalable, institutional-class solution for custody and settlement has been immensely favorable. As we enter 2020, we are focused on driving and supporting international participation in the digital assets marketplace with our applications for regulatory licenses in other trusted jurisdictions, in line with our aim to become the most highly-regulated solution for custody and settlement of digital assets globally…US Capital Global’s proven experience and valuable insight into capital formation, especially in the FinTech arena, will be tremendously beneficial to us at this crucial time in Koine’s development.”
Charles Towle, CEO of US Capital Global Securities, stated,
“It’s an honor to serve Koine as its placement agent and lead financial advisor for this upcoming investment opportunity as we engage selected dealers to expand the distribution of this offering. Koine is driven by an expansive, forward-thinking vision of the digital assets market that we at US Capital Global find very exciting.”
US Capital Global
In operation since 1998, US Capital Global is a well-known financial group, which is headquartered in San Francisco. One of the company’s affiliates is US Capital Global Securities – a broker/dealer licensed under FINRA.
CEO, Charles Towle, currently oversees operations of US Capital Global Securities.
Founded in 2017, Koine maintains headquarters in London, England. Above all, the company is working on the continued development of their suite of services, meant to solve custody and compliance issues within digital securities.
CEO, Hugh Hughes, currently oversees company operations.
As recently as yesterday, we were reporting on developments pertaining to custody solutions in the sector. With rising institutional interest in digital securities, and blockchain as a whole, these custody based solutions are imperative for ensuring a bright future.
Canadian Companies Involved in Digital Securities
July 1st represents Canada Day in the Great White North. As such, we thought that a quick look at a few Canadian companies involved in digital securities would be appropriate today.
To date, Canada has been one of the leading countries surrounding anything blockchain related. We have seen government adoption, the creation of Ethereum, the first Bitcoin fund listed on a major exchange, and rumblings of a potential central bank digital currency. The following are a few examples of Canadian based endeavours.
Bank of Canada
The Bank of Canada is one of the few of its kind to release official statements regarding the release of a CBDC. It has been established that, while there are no immediate plans for the release of a CBDC, the bank fully intends on being prepared for this, eventuality. This was first made apparent through job postings, such as ‘CBDC Project Manager’, but later through direct commentary.
In recent weeks, the Bank of Canada has gone so far as releasing an ‘analytical note’, which discusses the privacy needs of a potential CBDC. While they note that the goal is to attain privacy, akin to what cash affords its users, currently technology, such as zero-knowledge proofs, are not appropriate, and that both maturation and national-scale implementation first need to occur.
While it may be years before a Canadian CBDC is actually launched, the Bank of Canada is at least making sure the nation is ready for that day.
Operating out of Toronto, Blockstation is a young company, rife with potential. The team behind Blockstation has developed a suite of services which leverage blockchain technology. These services were built to allow “…the traditional financial ecosystem to get in on digital assets, including Bitcoin, Ether, and Tokenized IPOs (Security Token Offerings, or STOs)”
The hard work that went in to establishing these capabilities has not gone unnoticed, as Blockstation has successfully partnered with multiple stock exchanges. One such pilot will soon see the launch of at least 4 tokenized IPOs on the Jamaica Stock Exchange.
To learn about Blockstation in more detail, make sure to peruse our exclusive interview with CEO, Marko Hafez.
This Canadian outfit has recently received the greenlight by the regulatory body ‘Ontario Securities Commission (OSC)’, for the launch of a secondary marketplace.
Dubbed FreedomX, this anticipated marketplace will be one of the first of its kind in Canada. It will offer a home for digital securities to actively be traded, providing higher levels of asset liquidity in the process.
Beyond just operating a regulated secondary marketplace, TokenGX is also working to establish, and deploy, a stablecoin. This will be utilized as the primary means of settlement on FreedomX, and would be tethered to the Canadian Dollar.
The first release by Canada Stablecorp is known as QCAD. This is a CAD backed digital asset, which was structured as such for 3 main reasons.
- Provide its users with easy access to a digital asset, which can provide a reprieve from market volatility.
- Give Canadians a ‘home-grown’ variant; A trait which should appeal to Canadian investors looking to support Canadian companies.
- Leveraging the strength, and stability, of CAD. The Canadian dollar is typically accepted on a world stage, and benefits from a nation which typically remains removed from divisive world events.
While QCAD has not established itself to the extent shown by Tether, GUSD, and USDC, the potential is there.
Onwards and Upwards
Unfortunately, not all of the promising companies coming out of Canada could be discussed here today. Those discussed represent a fraction of the activity taking place in the great white north.
If one thing is clear from this activity, it is that Canada has been/is playing an important role in the forwarding of blockchain and the digital securities sector.
Happy Canada Day!
Monaco Chooses Tokeny as Sole Provider for Tokenization Services
While a tiny nation, endorsement and usage from the Government of Monaco is a huge step for Tokeny; It validates the work they have been doing, and the potential of what they are yet to achieve.
As it stands, the agreement between Monaco and Tokeny exists as a memorandum of understanding (MOU). While not a binding contract, the MOU essentially means that formal documents have been signed by each of the parties, indicating their intent to work together.
Upon announcing this new development, representatives from each, Tokeny and the Principality of Monaco, took the time to comment.
Luc Falempin, CEO of Tokeny Solutions, stated,
“The lack of high quality tokenized assets has been a stumbling block in the tokenization industry. With the mandatory label, projects selected by the Principality of Monaco will be easily recognized by investors as serious and quality investment opportunities. Then, the rights of investors will be guaranteed by their onchain identity. For the issuer, AML and KYC will be automatically enforced in any transfer.”
Frédéric Genta, Delegate for Digital of affairs Chief Digital Officer of the Principality of Monaco, stated,
“Monaco is moving towards its ambition to become a funding nation for progress with our STO framework. Two key milestones were achieved; a dedicated STO law was voted by the National Council and we are welcoming Tokeny to the Principality to operate our STOs.”
More than Promise
News of this newly established MOU goes beyond just promise, though. Tokeny has announced that they already have companies lined up, waiting to capitalize on their services and friendly regulations.
The first example of which, is IceBreaker. This production company hopes to leverage the benefits of hosting an STO, in order to fund and monetize content such as films and exhibits. IceBreaker is spearheaded by, Acadamy award winning filmmaker, Luc Jacquet.
He commented on plans at IceBreaker, stating,
“IceBreaker intends to leverage blockchain technology to facilitate the financing of meaningful content production while retaining all associated rights enabling new monetization opportunities via films, exhibitions, etc. March of the Penguins and the subsequent Antarctica exhibition have demonstrated that the model can be a profitable one making it appealing to investors while preserving the freedom to express my creativity and promoting the virtuous value of the projects I carry”.
With a population of roughly 40,000, and a geographical footprint of just <1sq mile, Monaco holds the title of the second smallest country on Earth. Despite this, it remains one of the wealthiest nations, as well, with over 30% of the population being millionaires.
Founded in 2017, Tokeny is based out of Luxembourg. Above all, the team at Tokeny has been working to develop, and spur adoption of, a suite of services tailored towards the digital securities sector.
CEO, Luc Falempin, currently oversees company operations.
Speaking with Luc
If interested in learning more about Tokeny, and what the company has to offer, make sure to peruse our past interview with CEO, Luc Falempin. In this discussion Luc Falempin touches on his personal discovery of blockchain, and what makes Tokeny special.
Real Estate Increasingly Popular within Digital Securities – Vertalo and Tokensoft each Launch New Platforms
On The Hunt
Blockchain based endeavours, such as cryptocurrencies, are only now beginning to grasp where they can thrive. It has taken a decade, but there are finally a crop of ‘killer applications’ being developed. This is most recently evident through the growth of decentralized finance (DeFi).
Digital securities are a step behind cryptocurrencies, and are still in the searching phase. With the sector first being distinguished only a few years ago, it is still in its infancy. In time, will it be tokenized art that catches on? Or maybe it will be supercars?
Multiple companies believe that they have determined the best use case for digital securities, and their accompanying services – Real Estate.
There are a variety of reasons which make real estate the perfect asset class to undergo restructuring with digital securities.
- Traditionally, real estate suffers from low-liquidity
- High fees and various ‘middlemen’
- Restrictive access
While each of these issues may not stand out as being blatantly detrimental, they most certainly hold back the potential of an industry, ripe for change.
Through the use and implementation of digital securities, each of these points can be addressed. In doing so, opportunities will arise where there were none before; All the while, giving more people access to a newly liquid asset class.
To learn more about why digital securities and real estate are a perfect fit, check out Vertalo’s FAQ on the subject HERE.
In the past week, we have seen two big announcements surrounding digital securities and real estate. These have come from a pair of U.S. based companies, each quickly becoming leaders within their space – Austin based, Vertalo, and San Francisco based, TokenSoft.
Vertalo Real Estate
An influx of digital securities into real estate has shown enough promise, that Vertalo has just formed/launched an entire new branch of their company named Vertalo Real Estate (VRE).
In order to hit the ground running, Vertalo hired the full team at Advantage Blockchain. With this experienced team spearheading the new endeavour, there will, surely, be new and positive developments announced in the coming months.
Among the talent coming on board from Advantage is RECM President, Gary Brandeis. In this new position Brandeis will operate as the President of Vertalo Real Estate.
This new branch is described as being “focused on transforming ownership structures for the commercial real estate market…throughout the United States.”
While initial focus may remain on commercial opportunities, the end goal is to expand into real estate opportunities of all sizes.
“…the hiring of the Advantage Blockchain team reflects the dramatic increase in interest from commercial real estate owners for increased efficiency and secondary liquidity. Vertalo has always considered commercial real estate – and eventually residential portfolios of all sizes – to be an ideal target market for digital transformation.”
TokenSoft Real Estate
Much like Vertalo, the merits of digital securities merging with real estate has not escaped the attention of TokenSoft. This young company has just announced the launch of a ‘private label marketplace for real estate’.
The purpose of this new platform is a simple, but lofty, goal – enable secondary sales of real estate based private equity. Beyond secondary sales, Tokensoft offers a full suite of services made possible through partnerships with companies, such as Signature Bank and Inveniam Capital Partners
“Real estate investments like these are traditionally illiquid for several years. Leveraging a combination of regulatory automation by use of the blockchain, we’ve been able to bring a much needed liquidity solution to market.”
In Other News
To learn more about why such importance is placed on liquidity, make sure to peruse Borys Pikalov’s thoughts in the following article.