The Announcement – Calibra
Facebook announced a pair of tokens recently. The project, which is being spearheaded by Facebook subsidiary, Calibra, will see both a stablecoin, and a security token, released.
While the stablecoin is meant to provide a global consumer base with an efficient means of transferring value, the security token facilitates project governance, and the development of a cash reserve.
Due to the potential of this project to significantly impact global currencies, and the financial system, the project has received much backlash, to date.
Upon initially announcing the project, many suspected that the world’s greatest population of humans, India, would not be eligible for participation. This suspicion was born from the on-going battles within the country, between blockchain advocates and central banks.
As suspected, Facebook and Calibra have since verified these suspicions by stating the project will not launch in regions where such currencies are outlawed. They do remain hopeful that perspectives may change in the future.
Alexandra Voica, Facebook representative, states, “Calibra will respect the legislation”, “But we are looking to work with regulators to see if the legislation can be updated”.
Meeting with Congress
On July 16th a Congressional hearing will be held, followed by a similar hearing in front of the House Financial Services Committee on the 17th. The main focus of these hearings will be the testimony of Calibra representative, David Marcus, as he discusses the project and two tokens to be released.
After making their intentions known to the public, Facebook and Calibra were greeted with a response of fear and outrage by government authorities. While some point to Facebooks past track record regarding privacy lapses as a main concern, others see Libra for what it could potentially be – a competitor to the USD.
Facebook has too much power and a terrible track record when it comes to protecting our private information. We need to hold them accountable—not give them the chance to access even more user data. #BreakUpBigTech https://t.co/eQr06VMMyx
— Elizabeth Warren (@ewarren) June 19, 2019
Whatever the case may be, this hearing will provide Facebook with the opportunity to give the answer Congress is looking for. Now is the time to allay any fears that regulators may have regarding the project.
While there are surely a plethora of factors driving the price trajectory of Bitcoin, the outcome of the congressional meeting regarding the Calibra project weighs heavy.
Anticipation of these meetings has been met with a swift decline in overall marketcap and prices in the days leading up to it. Time will tell, but most suspect a positive outcome of these meetings will be met with a positive uptick in pricing. A positive outcome is, however, far from a sure thing.
Tweets discussing cryptocurrencies are typically white noise. There are an exorbitant amount of industry players always weighing in on the state of the industry. However, when the POTUS begins tweeting on the subject, people listen.
…and International. We have only one real currency in the USA, and it is stronger than ever, both dependable and reliable. It is by far the most dominant currency anywhere in the World, and it will always stay that way. It is called the United States Dollar!
— Donald J. Trump (@realDonaldTrump) July 12, 2019
Whether you are a fan or a detractor of the POTUS, the fact that cryptocurrencies have captured the attention of the highest levels of government speaks volumes to the development witness within the industry in recent years.
Before the meetings with Congress ensure, Facebook and Cablira have already made it clear that they will not be launching the product until the authorities are satisfied with the projects structuring.
In his prepared testimony for the hearings, David Marcus writes the following,
“The time between now and launch is designed to be an open process and subject to regulatory oversight and review…We know we need to take the time to get this right. And I want to be clear: Facebook will not offer the Libra digital currency until we have fully addressed regulatory concerns and received appropriate approvals.”
While there may be unavoidable delays due to hearings and potential restructuring of the project, the fact remains that with the combined clout and influence of the companies involved in this project – Facebook, VISA, PayPal, UBER, MasterCard, etc. – it is hard to imagine Calibra failing.
Vertalo Receives TA License Approval
This month, the tokenization sector just got a bit more competitive as Vertalo announced the firm received its TA (transfer agent) license from the SEC. The important accomplishment places Vertalo in an exclusive class of SEC approved platforms currently in operation. Now the platform is ready to expand its functionality and expand its reach into the tokenization sector.
The Vertalo tokenization platform functions as an all-inclusive security token ecosystem. The platform connects issuers and investors directly to secondary trading markets. This strategy provides much-needed liquidity to the market. Uniquely, Vertalo is the only digital asset platform to offer its services to analog clients directly. Consequently, the platform could push security adoption further.
Vertalo’s streamlined design is meant to improve on the UX. The firm’s advantageous strategy tackles many of the most common barriers to adoption. For example, users don’t need any prior crypto experience to utilize the platform. Through advanced automation, users can skip over wallet setups. In fact, you don’t need any understanding of cryptocurrencies at all to use this platform successfully.
Tokenize it All
Vertalo allows anyone to take advantage of the benefits blockchain technology provides. Companies can tokenize their existing shares in real-time and without any technical know-how. Interestingly, the platform utilizes two of the most popular blockchains in the world to accomplish these tasks.
Ethereum or Tezos
Another unique feature of the Vertalo ecosystem is the fact that issuers can choose what blockchain to tokenize on. The platform utilizes both Ethereum and Tezos for these tasks. In fact, you can even convert your STO between chains with ease.
Vertalo – Experience Matters
When it comes to matters of compliance, you would be hard-pressed to find a co-founder with more experience than former SEC Attorney, Gautam Gujral. In the past, Gujral authored the SEC’s definitive paper released earlier this year. Consequently, Vertalo is fully compliant including the most recent joint statement released by the SEC and FINRA on July 8, 2019
High Standards – Vertalo
Speaking on the importance of his firm receiving its TA license, Co-Founder Dave Hendricks stated “The Transfer Agent plays a critical role in the lifecycle management of securities. While regulators continue to come to terms with the rise of digital assets, they have not lowered their standards and expect digital asset platforms and their partners to hew closely to long-established norms. ”
Full Compliance – Vertalo
Hendricks explained “Vertalo enables its clients and partners to maintain full compliance with existing securities regulations, even while using newer instruments such as security tokens. As we onboard more analog and legacy assets onto the Vertalo platform, our transfer agent capabilities will be able to address any compliance and securities handling requirements they may have.”
Vertalo’s Data Management Platform – TREATS
Another noteworthy project in the company’s pipeline has to do with the tokenization of private REITs (real estate investment trusts). Tokenized REITS provide more liquidity to the market. Additionally, these financial instruments are now usable as collateral. Comparingly, the traditional business systems employed in the REIT markets are paper-based offerings.
In order to make this monumental task a reality, Vertalo partnered with Prime Trust to build the TREATs platform. The goal of the strategic partnership is to combine Vertalo’s compliant digital asset management platform with Prime Trust’s market-leading custodial services.
In this manner, TREATs could play a major role in the market moving forward. Currently, the firm has billions of dollars of real estate under management. Importantly, the company announced that it is already working with dozens of REITs currently.
A Better Tokenization Experience
The developers behind the Vertalo platform have the experience and network to make their strategy work. You should expect to see major moves come from this camp over the coming months as the company’s strategies unfold. For now, the tokenization sector just got a new player worth watching.
Max Crowdfund STO Promises to Fuel Tokenization Revolution
This week, European investors got their first opportunity to participate in the Max Crowdfund STO. The Max Crowdfund platform seeks to revolutionize the EU real estate sector via an aggressive tokenization strategy. Interestingly, the STO will take place across five phases with the first release already surpassing its soft cap of €500,000.
Max Crowdfund is the tokenization and crowdfunding arm of Max Property Group B.V. (MPG). The platform utilizes blockchain technology to streamline real estate investments in a major way. The platform currently boasts over 75,000 global users. Additionally, Max Crowdfund provides the EU market with much-needed liquidity.
Developers seek to expand upon the platform’ s success. As such, funds raised from the STO will go towards the final development stages of the project. Once the platform is completed, it will become a complete real estate security token ecosystem. This ecosystem will include both native Android and iOS apps.
Also, third-parties will be able to tokenize and crowdfund their own properties via the platform. This means that other real estate firms can enjoy the same benefits without the need to invest directly in blockchain technology. Notably, this strategy has the potential to revolutionize development projects. Basically, any developer can now get pre-funded for their projects if investors feel the ROI is good.
A Global Audience
Max Crowdfund will remove many of the typical barriers surrounding real estate investment. For example, investors can participate in property sales for as little as $100. Aside from making real estate investing a reality for anyone, the platform seeks to provide these opportunities to a global audience.
Currently, Max Crowdfund awaits pending regulatory approval from the Dutch financial authorities (AFM). The company filed for approval back in October 2019 but the AFM has yet to make a decision. Typically, an AFM license approval takes around thirteen weeks to complete.
Max Crowdfund is already a major player in the tokenization sector. The platform is best known for its unique combination of features. Features such as automated KYC/AML reduce the amount of time it takes an investor to enter the market. Also, the platform offers multi-currency investment options. This feature is set for major expansion as the platform prepares for its global launch in the coming months.
Max Property Group B.V.
The Max Property Group B.V. entered the EU real estate sector in 2016. The company quickly gained notoriety for its advantageous market strategy. Currently, Max Property Group B.V. controls over €7,000,000 of property assets. The firm specializes in property funds, management services, and sales. Importantly, Max Property Group B.V. started development on the Max Crowdfund platform in 2017.
It’s no surprise to see Max Crowdfund’s expansion. The EU leads the globe in terms of security token regulatory framework. Many analysts see security tokens as the natural evolution of the crypto sector. A solid regulatory framework does more than just protect investors. It allows firms to invest in R&D without concern about the legal ramifications. In turn, you get more investment capital flowing into innovation.
Max Crowdfund STO
The Max Crowdfund STO is underway currently. Given the reputation and success of the platform to date, you can expect to see further investment into its capabilities as the EU tokenization sector continues to heat up.
GreyP Scores with NeuFund STO – Black One Entertainment On Deck
While never intended to be a financially large scale STO, the event was important, as it demonstrated the effectiveness and potential for digital securities to change the way smaller, private companies raise capital.
Just prior to the launch of the STO, we detailed the events which made it possible. In the following article you can learn more about the clearance given to NeuFund by the FMA, and what it means for the platform, moving forward.
Due, in large part, to their successes, NeuFund continues to see strong growth in their client base. The company indicates that their platform investor pool now totals great than 11 thousand individuals. This growth should result in a snowball effect, as issuers are attracted to the platform due to the scope of investors. More STOs will then draw in more investors – and the cycle continues.
Details of the Raise
With regards to the GreyP STO, there were various positive figures that came out of the events. The following are a few of the details surrounding participation:
- 1017 participating investors
- Hailing from 34 different countries
- €4million raised
- Represents 179% of the target cap
This early in the developmental stage of the digital securities sector, any successful STO is an important feat. With every positive and negative experience, industry participants can adapt and grow. Recognizing the importance of the GreyP STO, Zoe Adamovicz took the time to comment by stating,
“It’s an exciting day for Neufund and huge step forward for the security tokens industry at large. We have proven that private companies can effectively utilize blockchain IPOs, whilst lowering the barrier to entry for retail investors. Neufund is the future of stock exchanges.”
Speaking with Zoe
Earlier this year, we were able to complete an exclusive interview with the CEO of Neufund – Zoe Adamovicz. In this discussion, we learn more about NeuFund, themselves, as well as the views of Adamovicz herself.
“Blockchain is one of the greatest opportunities we’ve been presented with in modern history. Decentralization is ultimately about equalizing opportunities, so a young entrepreneur from the third world receives the same access as a wealthy investor. Building solutions that perpetuate the mistakes of existing markets solely for the purpose of increasing revenues is not enough. We, as a Blockchain community, can and should do better.”
Operating out of Croatia, GreyP is a tech company, which was founded in 2013. Above all, the team behind GreyP is working to redefine ‘smart mobility’. This technology has led the company to utilize e-bikes as a development platform.
CEO, Mate Rimac, currently oversees company operations.
Maintaining headquarters in Berlin, Germany, NeuFund is a popular digital securities issuance platform, which was founded in 2016.
CEO, Zoe Adamovicz, currently oversees company operations.
In Other News
NeuFund has also announced their follow-up to the successful GreyP event. This will see Black One Entertainment look to repeat this success in early 2020. While a firm date has not been announced for this STO, more information can be found in the company’s pitch deck, HERE.