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“Are digital securities another questionable crypto investment?” “Can I invest if I’m not accredited?” “What do these assets have to do with blockchain, anyway?”

As one of the most significant innovations in financial services, digitally formatted securities are poised to transform the $8.8 trillion alternative asset market. By replacing the inefficient, outdated processes that have defined this market for decades, digitization can help investors diversify like never before, find liquidity when they need it and potentially improve overall valuations. With the market for digital securities growing, however, confusion about these assets is just as widespread. …


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How well do you know your investors? For private and non-listed securities issuers, listing and administering assets means managing a litany of regulations around investor qualifications, shareholder limits and other compliance considerations.

Depending on the type of private placement, the Securities and Exchange Commission (SEC) has strict laws around asset ownership and transfer, with severe penalties for issuers who fail to meet requirements. In the traditional markets, the time and resources required to vet investors and ensure transactions meet compliance standards has often limited the pool of prospective investors for issuers.

By offering these assets digitally, issuers can streamline many…


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Potentially higher valuations. Lower capital costs. Fewer administrative hassles. As the digital securities market continues to grow, more issuers are investigating the benefits of digitizing their listings.

Digitization makes perfect sense for issuers in the $8.8 trillion alternative asset space, where inherent inefficiencies have prevented both issuers and investors from realizing the market’s full value. The industry’s paper-intensive, manual and redundant processes have remained largely unchanged for decades, making it nearly impossible to buy and sell assets on the secondary market and ultimately depressing valuations for issuers.

Digital securities offer an efficient, modern alternative, enabling investors to buy and sell…


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For participants across the alternative asset industry, the rise of digital securities is poised to deliver what’s long been missing from the private securities market: liquidity.

The prospect of liquidity is welcome news for those familiar with the notoriously complex and inefficient world of private investments. These complexities have created a highly illiquid environment that prevents investors and issuers from unleashing the full value of the alternative asset market, which is expected to climb to $14 trillion in the next five years.

By addressing many of the challenges that come with investing in assets like real estate, private equity and…


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Crypto exchanges have gained a bad reputation as being safe havens for money launderers to escape regulatory scrutiny and the law. This negative perception has not helped institutional investors or the mainstream in gaining the confidence necessary to participate in the burgeoning token economy. Security token trading platforms are poised to, not just change the perception of the digital asset investing space as a whole, but to put a halt to money laundering through compliance with regulations such as AML and KYC processes that prevent money launderers from obscuring their identities.

The Wall Street Journal recently performed an investigation that…


An Exploration of Assets and the Qualities that Make them Valuable

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Predating even the most ancient civilizations, the act of directly trading goods or services has long been a cornerstone of societies globally (and is still the predominant means of exchange in certain regions today).

From weapons and armor to cattle and spices, to internet forums facilitating trades between individuals, the barter system’s millenia of success cannot possibly be understated. However, there are certain limitations — notably, the age-old problem of divisibility and liquidity: Bob has a rare piece of art, and wishes to obtain a new pair of shoes…


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In light of the SEC’s recent crackdown on EtherDelta, many in the blockchain space believe we are facing a frigid “crypto winter.” Though stricter enforcement can have an effect on growth, regulation is both inevitable and necessary for the maturation of the token economy. For projects seeking to be compliant, dealing with regulatory ambiguity has been costly, time-consuming, and frustrating to say the least. Furthermore, get-rich-quick schemes, price manipulation, and other nefarious activities have not helped the perception of tokens and other digital assets among institutional investors and the mainstream.

Historically, regulation has been crucial for the development of some…


A Look Back at 2018: Witnessing the Evolution of Financial Systems in Action

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2018 has been a bit rough for fans of cryptocurrency and ICO projects, but at the same time, there is hope that more clear regulations may help to bring digital assets mainstream. Here is a look back on the trials, tribulations, and milestones experienced by the digital token economy in 2018.

According to this helpful timeline published in bitira.com:

  • In early January 2018, the US Treasury Secretary said that the department’s number one priority with crypto was to prevent its use in “illicit activities.”
  • By February, the…


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2018 has been an incredibly busy year for the team at OpenFinance, and we’re excited to share that on November 28th, 2018, we marked another major milestone on our roadmap — the start of security token trading on OpenFinance Network (OFN), the first US regulated security token trading platform to market.

The start of security token trading is a big step forward for the industry, and paves the way for the next application of blockchain technology in financial markets. We are honored to play our part in the development of the industry. …


New Forms of Wealth for the Digital Era

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With regards to the exponential growth and advancements in various technologies today, it’s clear that the world as we know it, particularly with regard to finance, is poised to see radical change as we shift towards a new iteration of the internet characterized by the seamless transfer of value and self-sovereignty.

Not only do we have better protocols and applications enabling interconnectivity between individuals around the world, but enhanced means of ensuring these individuals can transact and grow their own wealth. It’s perhaps for these reasons that remote work is taking off

Juan M. Hernandez

Juan M. Hernandez is the Founder and CEO of OpenFinance Network, the trading platform for security tokens and other alternative assets.

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