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US Global Securities to Act as ‘Lead Financial Advisor’ for $50M Raise by Custodial Platform, Koine.

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US Global Securities to Act as 'Lead Financial Advisor' for $50M Raise by Custodial Platform, Koine.

$50M Raise

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’.

Past Experience

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.

US Capital Global Securities to Act as Placement Agent in CityBlock DSO

Services Offered

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

Commentary

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.

Koine

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.

Custody Solutions

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.

Hex Trust Custody Platform made Possible through IBM

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Joshua Stoner is a multi-faceted working professional. He has a great interest in the revolutionary 'blockchain' technology. In addition to this, he is a licenced Paramedic in Nova Scotia, Canada. As such, he can provide emergency care/medicine to any situation necessitating it.

Token Solution Providers

Smartlands Begins Realignment with Eyes on Liechtenstein Blockchain Act

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Smartlands Begins Realignment with Eyes on Liechtenstein Blockchain Act

A Diverse Framework

Like any forward thinking company, tokenization platform, Smartlands, is in a constant state of growth.  This means pivoting with developments seen in the digital securities sector, in an effort to continue providing their clientele with the best experience possible.

With this in mind, the team at Smartlands recently announced that they would be looking to capitalize on friendly regulation, towards tokenization, put forth by Liechtenstein.

The company states that they are looking to ‘revise and expand legal framework’.  Furthermore, they will ‘base future projects on Liechtenstein Law’.

Ilia Obraztsov, CEO of Smartlands, elaborates,

“We remain believers in crowdfunding…but dwelling on our past successes is not in Smartlands’ book. We’re excited about the possibilities the Liechtenstein Blockchain Act presents to investors and issuers in regards to direct tokenisation of any asset using blockchain tokens as containers for any assets. Armed with cutting-edge legislation for investment funds, the Liechtenstein jurisdiction is ideal for structuring basically any financial product on blockchain there may be. Liechtenstein SICAVs (or open-ended funds) are industry standard and one of the most popular types of funds in the EU. SICAVs can be used as umbrella funds for multiple sub-funds. Such structure provides an efficient and fast way to introduce new investment ideas and opportunities on blockchain in one of the most prestigious fund jurisdictions. It is possible to tokenise any assets with a dedicated sub-fund.”

Platform Alignment

News of a platform ‘realignment’ surrounding Smartlands was first divulged by the team in early 2020.  While 2019 was a year of great growth for the digital securities sector, it, unfortunately, did not live up to the expectations of many.

Looking to realize this growth, in 2020, Smartlands announced this realignment of their actions, to better serve high-net worth individuals, firm, etc. – as opposed to the retail investor.  This, however, does not mean that the company is also pivoting away completely from retail based crowdfunding.

Yaroslava Tkalich, CMO of Smartlands, states,

“Crowdfunding is a very exciting area of fundraising, particularly in the UK with the country’s dense financial markets and tight regulations. Those preconditions allow us to involve all types of retail investors in campaigns for tokenised shares in virtually any asset class.”

High Hopes

The ‘Token and TT Service Provider Act; TVTG’ or ‘Liechtenstein Blockchain Act’, which has resulted in Smartlands rethinking their strategies, was originally announced by the Liechtenstein government in mid-2018.  The framework established through its implementation, however, only recently came into effect in January 2020.

The act was specifically structured by the Liechtenstein government, to allow for expected growth in the world of blockchain.  This meant writing an Act that while broad, would still allow for appropriate protections to be put into place.

At the time of its announcement, the Liechtenstein government stated,

“Because of the rapid pace of development of blockchain technology and its areas of application, it is very important to draft a law abstractly enough to ensure that it remains applicable for subsequent technology generations. That is why the term “transaction systems based on trustworthy technologies (TT systems)” is used for blockchain systems in this law. Due to the enormous potential of blockchain as a basic technology, the Government has decided to create a legal basis for the areas of application of the token economy and not only to regulate current applications, in particular crypto-currencies or initial coin offerings (ICOs). The goal is to ensure that a new law does not have to be created for every case of application, but also to create legal certainty for the many cases which are only just beginning to emerge in practice and are likely to develop in the near future. However, the Government is leaving open the option of regulating applications close to the financial market in a further step.”

The flexibility afforded through this Act is expected to attract many companies, similar to Smartlands, throughout the coming year, as they look to tokenize basically anything and everything.  Smartlands is simply one of the first to publically announce their intent.

Smartlands

Founded in 2017, Smartlands maintains operations in London, England.  Above all, Smartlands acts as a tokenization platform, operating under the watch of the Financial Conduct Authority (FCA).

CEO, Ilia Obraztsov, currently oversees company operations.

In Other News

Beyond growth in their market approach, Smartlands has been hard at work on, not only viable consumer products, but the tokenization of real estate projects.  The following articles are examples of each of these.

Smartee Looks to Change the Way Investors Store, Use, and Access, Digital Assets

Tokenizing London Penthouses and Greek Island Villas

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Fairmint Launches with High Hopes for the ‘Continuous Securities Offering (CSO)’

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Fairmint Launches with High Hopes for the 'Continuous Securities Offering (CSO)'

Companies are always trying to come up with new ways to bring ease and efficiency to raising capital.  With regards to blockchain based endeavours, we have seen the ICO, IEO, the STO, and now, what is being called the CSO.

This novel way of raising capital is the brainchild of funding portal, Fairmint – A platform that went live only days ago.

Fairmint describes their solution as “a turnkey cloud-based web application that enables companies to raise funding through a CSO with confidence and minimal effort.”

How does it differ?

The main differentiator between a CSO and an event such as an ICO, are the rights bestowed upon token holders.

For investors that do take part in a CSO through Fairmint, compensation is awarded in the form of a security token.  These tokens represent a proportional share to future revenue, generated by the company, and made liquid through the use of a reserve fund.

In order to provide investors with access to future revenue, a company must be forward thinking.  This is because they are required to create/generate a reserve of funds, leading up to the CSO.  This fund then acts as pool which provides guaranteed buying and selling capabilities.

While companies are required to purchase back tokens after a set period of time, holders have the ability to continuously trade these while the CSO is active.

By tailoring tokens in this manner, Fairmint likens the process to ‘decoupling equity from funding’.

Wrench in the Gears

The reliance on revenue does, potentially, throw a wrench in the gears of would-be applicants.  For the model to succeed, a company must have the means of, both, generating a financial reserve, and a clear path towards sustainable revenue.

While some may perceive these requirements as a burden, they do serve as a means for weeding out many projects that don’t necessarily have a bright future – regardless of how intriguing they may be.

The Appeal

Fairmint notes that there are various advantages when capital is raised through a CSO, versus more traditional means.  The following are a few short excerpts from Fairmint literature, describing what some of these benefits are.

Founders

  • Founders get financing without sacrificing ownership of the company. They also get a vehicle to align the company’s wellbeing with their stakeholders and customers.

 Investors

  • Investors get liquidity, so that they can buy and sell whenever they want within the boundaries set by securities law in the applicable jurisdictions

Stakeholders

  • Stakeholders – such as employees and platform users – get access to a security that lets them participate financially in the company’s growth.

The Handbook

For those intrigued by the potential benefits of a CSO, Fairmint has literature which delves into greater detail than this brief article.

Access to this handbook can be found HERE

Fairmint

Founded in 2019, Fairmint maintains headquarters in San Francisco, California.  Above all, the company acts as a funding portal, providing companies with a place to generate capital in a compliant manner.

CEO, Thibauld Favre, currently oversees company operations.

In Other News

As made evident throughout this article, there are various methods which a company can use to generate capital.

In a past contribution to our on-going ‘Thought Leaders’ series, Liza Aizupiete, Managing Director of Fintelum, took the time to elaborate more thoroughly on some of these methods.

STOs vs Crowdfunding, ICOs & IEOs

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Horizon Globex Shakes Up the Team, While Hosting a Successful Series A

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Horizon Globex Shakes Up the Team, While Hosting a Successful Series A

Promising Progress

Horizon Globex has just released news that their on-going $5M Series A is being met with enthusiasm.  This is demonstrated by the recent investment (undisclosed amount), by Element.

The announcement of a Series A first caught our attention months ago.  At the time, we took a closer look at the offering, and what it is the company was hoping to achieve.  The overall goal is to leverage their currently suite of services to address the following areas.

  • Global expansion of digital marketplaces
  • Research and development
  • Strategic acquisitions
  • Sales and marketing
  • Develop a Multi-Lateral Trading Facility (MTF)

Horizon Globex Eyes Growth through Series A

Strengthening the Ranks

Very rarely does a team have the perfect personnel from the get-go.  Positional transitions and hiring are crucial to ensure the continued progress of a project in the right direction.

As Horizon Globex hopes to continue trending upwards, they have looked beyond just the aforementioned investment by Element, and onboarded the CEO of a strategic advisor and shareholder of the company – James Haft.

James Haft will be joining the Horizon Globex team as the new Chief Strategy Officer.  A position well suited for him, as he brings decade’s worth of experience to the table within high-ranking positions.

Commentary

Naturally, the addition of James Haft to the ‘C-Suite’ at Horizon Globex garnered responses from both himself, and CEO, Brian Collins.  The following is what each had to say on the team’s expansion.

Brian Collins, CEO at Horizon Globex, stated,

“James has been a proactive supporter in our mission to usher in the next generation of investing and trading…His years of experience as a merchant banker, investor and hands-on venture builder makes him an invaluable resource as we continue to scale our software licensing business and trading-operations services.”

James Haft, newly appoints CSO at Horizon Globex, stated,

“Horizon has solid plans for its compliance and trading technology which I believe will lower the barrier of entry and speed up adoption for issuers, investors, and other market participants who want access to new markets. Horizon has the opportunity to be a leader in the digital asset creation and trading industry globally.”

Horizon Globex

Founded in 2010, Horizon Globex maintains operations in Zug, Switzerland.  The team behind the company has developed a variety of solutions geared towards the digital securities sector – allowing them to function as a ‘Software-as-a-Service (SaaS)’ provider.

CEO, Brian Collins, currently oversees company operations.

Element ASA

This publicly traded company acts primarily as a strategic investment firm.  While now delving into digital securities, Element maintains a focus on the mineral sector.

CEO, Geir Johansen, currently oversees company operations.

PALcapital

Founded in 1996, PALcapital is a seasoned company with decades of experience as an investment bank.  The company has a notable interest in tech based companies, with over 50 examples/investments to date.  With this being the case, an entrance into digital securities through Element is a logical progression.

It is noted in the aforementioned release that, “PALcapital is guided by the core belief that decentralized, open innovation will determine the future of asset ownership, business services, social and economic cooperation and capital formation”

CEO, James Haft, currently oversees company operations.

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