Lition and Tokeny have announced a new strategic partnership between themselves. This relationship will see the recently released TREX framework for issuing digital securities, utilized by Lition. Through its use, and attributes brought to the table by Litions second layer solution, the pairing hopes to effectively tackle the growing digital securities sector.
Building on a previous agreement between Lition and VR Bank, this new partnership will see the duo pilot a €20 million real estate loan.
Broken down simply, VR Bank will issue a security token representing participation in a group funded loan to be used towards real estate based in Germany. These tokens will be distributed over the Lition blockchain through the use of the TREX framework provided by Tokeny.
Alongside their announced partnership, the CEOs of both Tokeny and Lition took the time to comment. Here are a few quotes from each of these individuals, as they discuss the development at hand.
Luc Falempin, CEO of Tokeny, stated,
“The advantages of using blockchain technology in the issuance of securities are overwhelming. Those benefits are starting to be recognised by regulated institutions and this initiative is proof of that recognition. What has held this technology back from institutional adoption is the lack of compliance and regulation…This is the exactly why we developed the T-REX. This standard allows for the compliant trading of digital securities by enabling issuers to control transfers and ensures investors meet the obligations in each jurisdiction the assets are distributed in. We are incredibly excited to be utilising the T-REX and working with Lition and VR Bank in this genuinely first-of-a-kind technical demonstration of an offering.”
Richard Lohwasser, CEO of Lition, stated,
“We’re tremendously pleased to announce this initiative with Tokeny after having already announced our partnership with the VR Bank earlier this week. The benefits of tokenizing securities are very strong. So far high legal hurdles have hindered large scale adoption, but by ensuring data privacy and deletion with our unique technological solution, we’re finally one step closer to legal security token offerings. It opens up the door for many others to follow suit”
Above all, Lition is working to establish their public/private blockchain solution. Acting as a ‘layer 2’, scaling solution, the Lition blockchain functions on top of Ethereum. The structuring of Lition allows for endless use cases to be realized through dApps built on top of it.
Above all, Tokeny is working to develop the digital securities sector. They are doing this through the use of a public framework tailored for security tokens, which is known as ‘TREX’.
In Other News
In recent months, we have documented endeavours pertaining to both Lition and Tokeny. Check out the following articles to learn what else these two companies have been up to as of late.
AssetBlock Tokenizes $60 Million Real Estate Fund
This week has seen some dramatic events take place in the blockchain real estate sector. Notably, AssetBlock announced the tokenization of $60 million in real estate funds. The news demonstrates the further expansion of blockchain technology into the traditional real estate market, and AssetBlock’s desire to become a major player in the sector.
News first broke of the tokenization on September 17 via a BusinessWire press release. In the post, AssetBlock sheds some light on the strategies in place and how the company plans to disrupt the traditional markets.
AssetBlock Utilizes Algorand Blockchain
Uniquely, AssetBlock chose to tokenize the properties on the Proof-of-Stake blockchain – Algorand. The Algorand blockchain brings some interesting benefits to the table including compliance, global reach, and a strong team of experienced experts.
As such, the Algorand blockchain is built to be sustainable and governed by open operating standards. Another important point worth mentioning is that Algorand blocks finalize in seconds. In essence, this strategy makes it possible for investor participation globally and instantly.
As a Proof-of-Stake blockchain, the energy consumption is far less than a Proof-of-Work (PoW) blockchain such as Bitcoin. Algorand uses a proprietary version of PoS dubbed Pure Proof of Stake (PPoS). This protocol provides full participation while leaving users protected at all times. The system is able to achieve consensus without the need for a central authority making truly decentralized.
Lodging Capital Partners LCP
To make this advantageous maneuver, AssetBlock enlisted Lodging Capital Partners (LCP). LCP currently holds over $1.5 billion in international real estate. For their part, LCP provided the properties to be tokenized.
In this particular instance, AssetBlock chose to tokenize $60 million in luxury hotel properties. According to company executives, these properties are only available to blockchain investors.
AssetBlock – More Opportunities
Speaking on the decision, AssetBlock CEO, Mike Lidell touched on the importance of merging traditional and non-traditional investors in an efficient manner. He explained that this is the best way to create more opportunities for everyone in the market.
Additionally, Steve Kisielica, the Principal CIO of LCP described how the maneuver creates a new investment pool in the market. He also spoke on the responsibility companies have in terms of embracing new technology that simplifies the market.
AssetBlock officials are serious about getting these tokens out to investors. The company officially earmarked the token launch for mid-October.
Real Estate is Growing Digital
The company’s decision mirrors that of some of the biggest players in the game in some aspects. Just this week, Securities reported on Harbor tokenizing $100 million in real estate funds for much of the same reason.
You have to give it to AssetBlock for it’s out of the box thinking. Utilizing a Proof-of-Stake blockchain is a great way to avoid future issues related to energy consumption. You can expect this deal to boost the notoriety of all the firms involved, as well as the possibilities of using PoS blockchains for tokenized real estate.
TokenMarket Streamlining to Focus on Digital Securities
Today it was announced that PayRue has acquired a cryptocurrency exchange, developed by TokenMarket.
With PayRue already holding the appropriate licensing in Estonia to launch an exchange, it is expected that the service will go live sooner than later.
This move goes beyond simply taking control of a cryptocurrency exchange, however. The acquisition is part of a larger partnership which will see the pair of companies work to ensure future integration of services throughout their platforms. The companies state that this integration will benefit their client base, currently numbering over 200,000 and growing.
This acquisition caught our attention, specifically, due to the reasoning behind it. On the part of TokenMarket, this move was undertaken with the intent to focus their efforts more completely on the advancement of the digital securities sector.
Over the past few months, TokenMarket, has made it clear that this is where they believe the future lies, and are hitching themselves to the wagon. Whether undergoing their own STO, or working to develop services and obtain appropriate licensures, they are quickly setting themselves up to be a leader in the space.
Upon announcing the acquisition and re-focusing efforts discussed here today, representatives from each, PayRue and TokenMarket, took the time to comment. The following is what the CEO of each company had to say on the matter.
Mikael Olofsson, CEO of PayRue, stated,
“Working with TokenMarket on a cryptocurrency trading platform is an exciting development for PayRue. Some may see the exchange market as crowded, but our view is that regulated decentralised exchanges are the next evolution and very few companies are prepared for this. We believe that our users will benefit from the security and transparency that centralised exchanges are currently failing to deliver, as showcased with the continuous hacks and fake trading volume”
Ransu Salovaara, CEO at TokenMarket, stated,
“We are excited to work with PayRue as we believe there will be a monumental shift to regulated wallets and exchanges. This partnership allows us to put all our focus on token issuance and the tokenised securities market, which we expect will be a billion dollar business in the coming years.”
Speaking with Mikko
We recently had the pleasure of completing an exclusive interview with the Chief Technology Officer of TokenMarket – Mikko Ohtamaa. In this interview, Mikko, discusses, not only his own foray into blockchain, but the future of TokenMarket within the industry.
Founded in 2017, TokenMarket is a crowdfunding platform based out of Gibraltar. Their efforts are focused on the development of the digital securities sector, through the use of blockchain technologies. To date, TokenMarket has assisted various companies’ complete successful token sales. This includes Storj, Ethos, and more.
CEO, Ransu Salovaara, currently oversees company operations.
Operating out of London, England, PayRue is a tech company which offers services surrounding cryptocurrencies. This includes a mobile payment app, along with the acquired capabilities discussed here today.
CEO, Mikael Olofsson, currently oversees company operations.
In Other News
To date, we have detailed developments pertaining to TokenMarket on various occasions. The following articles elaborate on a few of their developments from the past year.
WORBLI Looks to Make STOs More Affordable
This week, the World Blockchain Initiative – WORBLI – announced plans to revolutionize the STO sector. To accomplish this monumental task, the firm plans to create the world’s most cost-effective and pro-developer blockchain ecosystem to date. The news signals a key shift in strategy by smaller firms, as well as, a continued interest by companies seeking a blockchain-based IPO alternative.
World Blockchain Initiative WORBLI
The WORBLI platform is an STO ecosystem which allows businesses to share in the firm’s extensive library of decentralized apps (Dapps) without the need to hire custom developers. Think of WORBLI as kind of like a blockchain a la carte. In this manner, users can pick exactly what services they require and integrate these services without creating a large workload.
According to WORBLI executives, the platform’s design enables endless possibilities for future developers. For example, a client can add GEO Fencing to their security token. This feature ensures that the token never is sold outside the compliance region.
Identity-based Financial Tiers
Another cool feature is the ability to utilize identity-based financial tiers. You can compartmentalize your STO and only allow certain investors the ability to participate in particular investments. This feature allows firms to better market services to accredited-investors without cutting out smaller contributors.
WORBLI Works on Any Blockchain
Perhaps the most impressive feature of the WORBLI platform is that it can function on any blockchain. Allowing users to choose their favorite blockchain is a smart way to facilitate market integration, and gain trust from users.
In a recent post, WORBLI developers spoke on the rising costs associated with traditional IPOs. Notably, the company pointed out that soon, only mega-corporations will have the capital to host one. To add to the point, developers also spoke on the recent closures of numerous blockchain firms after the institution of more expensive regulatory framework derailed their budgets.
However, one of the most interesting points covered in the post was the fact that these costs also stifle innovation. This innovation is critical for the development of the digital economy. This is why WARBLI set out to create a platform that delivers STO services at an affordable rate in the first place.
WARBLI Network Expands
Most recently, WORLI made headlines after partnering with a blockchain-based digital content timestamp platform called WordProof. WordProof allows content creators to prove ownership of their creations easily and with the validity of the blockchain.
Another noteworthy partnership WORBLI made is with EDNA. EDNA is a DNA firm that seeks to bring more transparency to the DNA market. Currently, DNA firms have little accountability. This lack of transparency has led to a rise in public concern about the use of their DNA after the testing ends.
WORBLI Has a Smart Strategy
WORBLI seems to have a new approach to the STO market. The fact that users can utilize their favorite blockchain could be a big draw for businesses familiar with cryptocurrencies. For now, the firm looks to become a major force in the space.