Forward-Thinking Institutional Investors Overcome Inhibitions about Blockchain
Ignoring blockchain technology today is like ignoring the internet 30 years ago!
As blockchain technology evolves institutional investors all over the world are becoming more and more focused on the benefits that blockchain can bring to the market. Institutional investors are slowly over-coming their inhibitions about blockchain technology and crypto currencies.
After years of research and development, companies are using blockchain networks to conduct trade finance, track diamonds and prove the provenance of marijuana. ICO’s are now getting over 60% of their investments through private placements enabling a combination of equity and token deals.
The Future of Money
At the UN General Assembly, the Prime Minister of Malta, Joseph Muscat stated that blockchain technology will allow crypto to inevitably become the future of money!
Muscat stated:
“I passionately believe technology revolutionises and improves systems. This is why in Malta, we have launched ourselves as the blockchain island by being the first jurisdiction worldwide to regulate this new technology that previously existed in a legal vacuum. Blockchain makes cryptocurrencies inevitably the future of money. By being more transparent it helps filter good business from bad business.”
“The Possibilities are Staggeringly Great!”
The former US President, Bill Clinton expressed his enthusiasm as follows:
“This whole blockchain deal has the potential it does only because it is applicable across national borders and income groups. The permutations and possibilities are staggeringly great! We could ruin it all by negative identity politics and economic and social policy. You think about that.”
Blockchain Start-ups Disrupt the Multi-Trillion Securities Market
The value of the stock, futures, commodities, foreign exchange (FX) and over-the-counter (OTC) derivatives markets stood at over US$542 trillion in 2017. Almost every industry including finance is going through a technological revolution and traditional business models are being challenged.
With over $9 billion raised by blockchain start-ups in the last 12 months, new opportunities for start-up funding are opening up. There is also the advent of security tokens that comply with local country rules and their legal compliance and investor documentation is now getting closer to IPO standards. MOBU states: “Forget ICO’s, STO’s (Security Token Offerings) are the future!”
Countries come on board
Since early 2018, Malta increasingly focused on building an ecosystem that significantly improves the businesses of crypto and blockchain-related companies. The local government of Malta is very passionate about the potential of blockchain and its ability to eliminate third party service providers to provide users complete freedom over information and money. Blockchain will eventually produce solutions that can replace existing infrastructure in all major industries. In fact, Binance, the world’s largest cryptocurrency exchange with approximately 10 million users and $200 million in quarterly profit, relocated its headquarters to Malta.
Most recently, Seoul, Busan, and Jeju Island, three major cities of South Korea, the fourth biggest economy of Asia, announced their intent to replicate the success of Malta after being inspired by its success. Switzerland and Gibraltar are also leading the market for crypto currencies, exchange and ICO regulations.
Institutions Step Forward
Cryptocurrency has several trump cards that aid users and institutions alike.
Cryptocurrencies will become part of individual portfolios eventually and more people will also view crypto as a store of value, similar to gold. Financial experts claim crypto is positioned for major growth now that institutions are investing in it and big companies are starting to accept it. Big companies like Microsoft and Starbucks are allowing customers to use crypto and that, in the short term, more institutions will invest for fear of missing out (FOMO). Citigroup and Morgan Stanley announced plans to add cryptocurrency custodian solutions. Coinbase and Bitgo, meanwhile, have regulated custodian solutions, providing products institutions can use to enter the cryptocurrency market.
Blockchain has captivated Wall Street because it could process virtually any kind of trade or money transfer in minutes. That would vastly reduce the capital that must be set aside before settlement. Industries are intrigued by its potential to improve efficiency. Widespread adoption faces several challenges, however, including regulatory approval and persuading competitors to work together to form networks.
MOBU — Thinking Big
As a decentralised platform and end-to-end solution for launching compliant security tokens, MOBU is more than ready to capitalise on the increasing use of blockchain technology and the need for ICO Issuers to adhere to regulatory approval. MOBU offers a well-developed ecosystem (network) with vetted service providers for KYC/AML compliance, escrow services and legal support. MOBU offers a competitive pricing platform to ensure lower pricing and better quality of service providers that implement a unique protocol called the MOB20. MOBU will support Reg S, Reg D and Reg A+ compliant security token offerings and with the incorporated ability to select experienced legal counsel across multiple jurisdictions within the platform, token issuers can be sure they can create a compliant security token offering within their jurisdiction.
Private placements raise roughly 3 Trillion USD per annum globally, just imagine if it can be done with less friction and less middlemen? Never underestimate a good protocol as HTTP defined the internet! The 80 Trillion USD securities market remains untouched in the blockchain space…
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