The Global Security Token Ecosystem
While utility tokens are meant to be spent within a particular business ecosystem, a lot of people just hold on to them, hoping their value will rise in the future, effectively treating them like securities and hence catching the attention of regulators. This led to the creation of a new category of digital assets: Security Tokens.
Security token offerings (or STOs) combine ICOs with IPOs to provide a perfect balance between gaining secure access to capital at a lower cost while remaining compliant with securities laws. This means that companies can raise funds from the public by issuing a fully compliant token of its equity, assets or part of revenue. Security tokens are still relatively scarce and the ecosystem is quite underdeveloped (compared to traditional utility tokens). Currently the US and Europe are the leading markets in creating regulations for the security token environment, with the US taking the lead.
The security token ecosystem consists of: Issuance Platforms, Exchanges, Custodians and Infrastructure providers.
The European Ecosystem
Issuance Platforms
Block Stocks provides a turnkey service in creating tokenized securities offerings for SMEs. From marketing, legal, finance and IT, all execution is provided in-house so owners can focus on what they are best at.
White Label Platform for Security Token Offerings.
GoSecurity provides a white label technical platform for STOs. They offer a highly scalable and secure platform for launching your security token. They provide fully compliant and customizable work-flows for KYC, AML and accreditation.
Jibrel is a blockchain and smart contract development company. They aim to leverage the latest innovations in cryptography, distributed ledger and smart contract technology to build the financial networks of the future.
The BlockEx Digital Asset Exchange Platform manages the entire lifecycle of blockchain based digital assets, including origination, issuance, exchange, settlement and redemption. The DAxP includes a digital asset creation tool, exchange, clearing, settlement, registry and Brokerage Software.
Exchanges
The Blockchain Based Stock Exchange (GSX) aims to be a world-leading institutional-grade token sale platform and digital asset exchange. Built upon principles of decentralisation and community consensus.The GSX is regulated by GFSC under License number FSC 1231B and operates as an EU-regulated market,recognised by ESMA (European Regulator) and HMRC (UK).
Switzerland’s stock exchange owned and managed by SIX announced on 6 July 2018 that it is building a fully integrated trading, settlement and custody infrastructure
DX.Exchange is the first complete crypto community that allows institutions and individuals to purchase cryptocurrencies with fiat, trade cryptocurrencies, and convert crypto back to fiat. DX.Exchange is being built on Nasdaq’s market leading matching technology.
BlockExMarkets is a London-based brokerage where you can buy, sell and exchange crypto, FIAT and participate in ICOs. With a user-friendly interface that puts the customer in control and supports a variety of secondary markets and fiat-to-crypto and crypto-to-crypto instruments. The ICO marketplace features a selection of vetted ICOs available to all. Participants can purchase ICO tokens using either crypto or FIAT.
Blocktrade brings blockchain-based technologies and crypto assets to a unified and connected marketplace. It is Swiss guarded with the highest security and integrity features, performance driven, high volume and market-depth that meets stringent statutory compliance.
Custodians
Switzerland’s stock exchange owned and managed by SIX announced on 6 July 2018 that it is building a fully integrated trading, settlement and custody infrastructure for digital assets.
Ledger Vault is a multi-authorization cryptocurrency wallet management solution enabling financial institutions to safe keep their funds.The solution is ideal for Asset Managers and Custodians looking for convenience and streamlined operations with zero compromise on security.
Swiss Crypto Vault AG was established in strategic partnership between Swiss Gold Safe AG and Bitcoin Suisse AG to provide the combined expertise in storage and crypto asset handling.
Infrastructure
Neufund is a platform for primary offerings of securities, as legally binding smart contracts on the Ethereum Blockchain “Equity Tokens”. Such tokens are technologically enhanced shares that are as easy to purchase and trade, yet give the investors and issuers legal protection similar to classical forms of VC investing. The platform has key expertise is in legal-tech and reg-tech.
Smartlands is a worldwide Platform for tokenization of real economy assets by issuing asset-backed tokens (ABT). Use a ready, secure and proven solution developed by Smartlands. In cooperation with Stellar and other partners on Platform development. Be involved in the fast growing crypto market. Make profit by investing in well-managed and accountable token offerings.
The US Ecosystem
Issuance Platforms
Swarm makes it simple to reach thousands of global investors looking for unique new opportunities just like yours. You will launch a regulatory compliant security token that is tradable, transferable, and grants voting rights to investors.
Polymath’s ST20 token standard simplifies the process of creating and investing in security tokens. Their simple, transparent ST20 token standard is open-source and has KYC (Know Your Customer) built-in.
Harbor is a compliance platform for tokenizing private securities such as real estate, company equity, investment funds, fine art, etc. Tokenized securities comply with existing securities laws at issuance and on every trade, everywhere across the globe.
Securitize is a turnkey, white-label solution for the tokenization of securities issued by funds, companies, and other entities. Securitize manages the processing of solicited investors from login to capital received, as well as the issuance and management of the security tokens throughout the lifetime of the asset.
Exchanges
SharesPost is a better private market, more transparent, efficient and accessible to all. The SharesPost platform fosters transparency by publishing private market data, research and valuation tools. Our experienced transactions team leverages our technology platform to match buyers and sellers and provide best-in-class transaction execution. Expecting trading from H2 2018
Orderbook is a decentralized exchange that automates the process of investor verification through a specialized token. The token, named RAP, ensures that ICO and other crypto related transactions are compliant by cross-referencing local jurisdictions requirement with its database of RAP token holders credentials.
VRBex will be the premier exchange for investors seeking to exchange or trade cryptocurrency and to invest in crypto-assets such as security tokens.
The highly experienced management team will
ensure compliance with regulatory requirements from the USA and other countries.
OFN (OpenFinance Network) With the emergence of “crypto” alt assets and the industry shift towards a ledger based book-entry process, the need for standardization and interoperability with alternative assets is greater than ever. OFN’s system is designed for traditional alternative assets and token-based securities, and allows for a streamlined compliant process from issuance to secondary market trading.
Custodians
PrimeTrust is the place for offerings of stock, debt and tokens (“coins”) conducted pursuant to US Securities regulations, including A, D, CF, S, S-1, S-11, and EB5. They provide a suite of services delivered with technology for back office support and compliance.
Coinbase’s digital currency wallets are great for day-to-day spending, but storing large amounts of digital currency for the long term requires extra security.
Contact Paladin Trust to get your digital assets and currencies secure right away. In most cases, custodian services for ICO companies can be offered for no additional charge.
Vo1t is a leading global custodian of blockchain assets. They have combined cutting-edge system design with cybersecurity best practices to create the world’s most secure cold-storage vault.
Infrastructure
Bancor is a platform which allows you to convert between any two tokens on our network, with no counterparty, at an automatically calculated price. Thanks to built-in liquidity, the future of user-generated tokens is here. A new standard for ERC20 tokens that allows smart contracts to connect to a liquidity network, enabling continuous on-chain liquidity throughout the network, without needing to match buyers and sellers.
Templum is an innovative financial technology company focusing on creating a regulatory compliant marketplace for the primary issuance and secondary trading of digital assets through security tokens. Templum will offer issuers a platform for the initial sale of their tokenized securities and both issuers and investors a centralized platform for secondary trading.
By combining the emerging secondary market and crypto The Elephant is an enhanced online platform that opens the door to investments in the world’s most auspicious, important and interesting private companies prior to their liquidity event. Enabling pre-IPO companies’ shareholders to sell their shares prior to a liquidity event and for investors to invest in such shares through dedicated partnerships represented by tokens.
Rialto Trading is dedicated to delivering trading tools to the fixed income market. They have developed three products that provide different avenues to sourcing liquidity that can be used alone, or combined to lever results.
The Asian Ecosystem
For suggesting more companies in the Asian region please contact us at: info@gosecurity.io
Issuance Platforms
AnyPay It is often difficult for token-issuing companies to follow the legal requirements associated with STOs and to prepare the multitude of required documentation from the ground up. With AnyPay’s system offers various services necessary to conduct a successful STO.
Exchanges
Bankorus is the world’s first encryption wealth management platform that provides high-net-worth customers with a complete solution for digital asset allocation. Buying and selling digital assets in the only global market with a smart contract platform based on blockchain technology, compliance issues will no longer be a hassle.
Infrastructure
Equitybase is on a mission to give everyone access to tokenize digital asset investment and trading opportunities. Invest in digital asset from as little as $1. They make investing in blockchain simple and easy for everyone.
JD Blockchain Open Platform is built on multiple underlying technologies, and enables customers to create and adjust smart contracts on public and private enterprise clouds with ease. The technology can help companies streamline operational procedures such as tracking and tracing the movement of goods and charity donations, authenticity certification, property assessment, transaction settlements, digital copyrights, and enhance productivity.
Security Token Offerings
They also gathered both the currently active STOs and offerings which have already reached their goals, ranging from Equity tokens like Leaseum Token a blockchain based real estate investment and 22xfund looking to diversify the ownership of startups to Share tokens such as ElioCoin a car manufacturer looking for alternative ways of funding, Netz a renewable energy asset backed token and Azbit a cryptocurrency banking structure. At the time of writing the first draft of this article (August 2018) 2–3 STOs are popping up weekly, with 2019 approaching and a wave of new investors incoming. I expect the acronym STO to eventually surpass ICO and more and more mainstream and startup companies announcing them.
This article is constantly updated to reflect the state of the Security Token Ecosystem as new players are being introduced.
The same document is reflected at GoSecurity .You can contact us at: info@gosecurity.io for more information, corrections, suggestions and additions to our current overview.
