10 Blockchain Companies That Will Break Into The Quadrillion-Dollar Securities Market In 2019

Kingsley Advani

In 2018, 1257 Initial Coin Offerings raised a combined $7.85 billion globally. Security Token Offerings (STOs) will eclipse this as programmable securities become the standard means of capital formation and ownership across:

  1. $544 trillion in derivatives
  2. $217 trillion in global real estate
  3. $215 trillion in global debt
  4. $70 trillion in global equity

As private equity, public equity, real estate, investment funds, and previously illiquid assets are tokenized, these companies are strongly positioned to become ground-level players as issuers, exchanges, launchpads, and pioneers of security tokens.

1. Securitize — Issuance platform for STOs

2. Coinbase — World-leading digital currency exchange

3. St Regis Aspen Resort, Colorado — Tokenized luxury hotel

  • Tokenized 18.9% of the internationally renowned St. Regis Aspen 179-room luxury hotel
  • Raised $18m worth of tokenized securities on Indiegogo and listed via FINRA and SEC-regulated and licensed ATS Templum Markets
  • First of its kind in the blockchain, finance, and real estate industries for a single-asset real estate investment trust (REIT)

4. Harbor — Platform for automated regulatory compliance and security token issuance

  • Raised $38m from funds including Founders Fund, Pantera Capital, Signia Venture Partners, Andreessen Horowitz for institutional-grade security token issuance platform
  • Led by David Sacks (founding COO Paypal, founder and CEO of Yammer)
  • Cross-border compliant Harbor R-token stored by industry-leading custodian BitGo
  • Tokenized 49% equity of University of South Carolina Student Housing REIT alongside Convexity Properties

5. Securrency — compliant security token platform and decentralized investment banking service provider

  • Created the first blockchain-agnostic security tokens: patent-pending CAT-20 and CAT-721 compliant in more than 160 countries in primary and secondary markets with KYC and AML on fiat and crypto wallets
  • Core team comprised of former top-level leaders in US National Defense including CEO as ex-Chief Innovation Officer of Defense Intelligence Agency
  • Partnered with leading Wall Street Alternative Trading System AX Trading, who are expecting to list security tokens as early as January 2019

6. tZERO — SEC-licensed and regulated security token exchange

  • Launched in January 2019 one of the first fully SEC-regulated security token issuance and trading exchanges
  • Led by Patrick M. Byrne, CEO of $470m ecommerce platform Overstock
  • Raised $134m in its 2018 STO and secured a $270 million investment letter of intent from Chinese private investment fund GSR Capital

7. Maecenas — Tokenized art investment platform

  • Fractionalized ownership of masterpieces via security tokens in the $64 billion global art market for collectors, galleries, and investors
  • Tokenized and sold a $1.7m, 31.5% stake in Andy Warhol’s 14 Small Electric Chairs, announced intention to tokenize Picasso in collaboration with 0x and MakerDAO
  • Partnered with Pantera Capital, Dadiani Syndicate, and Wilbe Ventures to accept seven cryptocurrencies including Bitcoin, Ethereum, and Litecoin as payment for tokenized artworks

8. Templum — Leading SEC-regulated broker-dealer and Alternative Trading System for security tokens

9. Token72 — Issuance platform for STOs

  • Provides full suite of STO services including pre-STO, issuance, and post-STO led by industry-leading blockchain venture capitalists from FBG Capital and GBIC
  • Existing business that generated strong revenue in first 12 months of operation
  • Exclusive access to FBG Capital’s investment network for prospective STO clients including 0x, Bancor, ThunderCore, and Blockfolio

10. London Stock Exchange Group (LSEG)

  • One of the oldest and largest exchanges in the world partnered with Financial Conduct Authority (FCA) and startups 20|30 and Nivaura to tokenize securities in the UK
  • Issued on LSEG’s Turquoise platform — the hybrid exchange for European equities offering companies to list their security tokens alongside more than 4500 stocks with access to 19 major European markets
  • 20|30 to issue Ethereum-based equity tokens that are cleared and settled by Nivaura’s blockchain custody services for full regulatory compliance in the UK and EU markets, targeting accredited and institutional investors

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Kingsley Advani is Partner at Chainfund Capital, a $20m venture fund.

Kingsley Advani

Written by

Investor featured on CNBC, Forbes, Business Insider, ADVFN and Yahoo Finance.

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