Consensys and Deutsche Börse Make a Move — into the Tokenized Assets Space

Each week we share the latest news in the Security Token industry. This is newsletter #27 — subscribe here to get it in your inbox every Thursday.


In a previous issue of this newsletter, we reported on BitBond receiving the go-ahead from the German regulator (BaFin). The BitBond STO has kicked off this week, and raised $1m on its first day.

Aside from the investor interest in the product, it’s interesting to look at the strategy of issuers of tokenized securities that have long time horizons.

In this case, the Bitbond matures in 10 years. So here’s some food for thought:

Considering bitcoin is 10 years old, what will happen in the next 10 years? And more generally, what happens when you issue tokenized debt that uses a technology as young as (or even younger than) its term to maturity?

QUOTE

The tokenizations of assets — rather than the underlying cryptocurrencies — is the thing that changes finance. Instead of storing money in your pension scheme, which you might use to buy electricity when you’re old, why don’t you just store electricity in your pension scheme? Why not take out one layer of indirection?

— By ‘the Irascible Old Man of Blockchain’ David Birch in an interview with BreakerMag.

NEWS

💻 Last month, Consensys quietly announced a new platform for the tokenization of financial assets. ‘The Dauriel Network’ is their implementation (GitHub) of ERC777 and ERC1400, using the private blockchain Kaleido. No website yet, but here’s a video of the product’s UI.

🏗️ Deutsche Börse Group, Swisscom and Sygnum have partnered to build a financial market infrastructure for digital assets. As part of the deal, Deutsche Börse and Sygnum will become shareholders of Swiss tokenization platform Daura.

🧠 Last week saw the (beta) launch of the Taiwanese marketplace for tokenized intellectual property Machi X. Currently, users can purchase IP from a handful of Taiwanese music artists.

💰 Overstock’s Medici Ventures acquired a 5.1% equity stake in blockchain banking platform Bankorus. Bankorus allows users (and particularly HNWI’s) to easily buy/sell/store/lend digital assets, and as such fits well with Overstock’s tZero and its other acquisitions in the tokenization space.

🇰🇷 ICON, the Korean blockchain network, has published the IRC16 standard (GitHub). The standard is designed for the issuance of tokenized assets and securities on the network.

🥨 The German Finance Ministry has published a report recommending the introduction of digital securities into German law. The report (here in German) comes as German lawmakers are in the early stages of drafting a bill on tokenized securities.

🚗 Not so much news, but rather an interesting project coming out of the ETHParis hackathon: 12Months allows Estonian E-residents to stake their car to get a loan in DAI by using the 0x protocol.

LONGER READS

🔌 The guiding principles for the post-trade processing of tokenized securities. Using the Principles for Financial Market Infrastructures (PFMI) as a guide, this whitepaper by the Depositary Trust & Clearing Corporation (DTCC) offers a wide range of guiding principles for security token platforms.

🎙️ A very extensive (and slightly technical) interview with lead developer at Ravencoin and Medici Ventures’ principle developer, Tron Black.

⛓️ 5 Features that every blockchain built for digital securities needs, according to Mels Dees from Dusk Network.

💳 An introduction to LoanScan. LoanScan provides an overview of financial instruments routed via decentralized finance protocols such as Compound, Dharma Lever and MakerDAO.

NEW STOs

⚙️ 81-c is issuing tokenized class B stock on StartEngine for a maximum of $1.07m. The company, with a pre-money valuation of $1.25m, scales startups as a service.

🛫 Private jet booking platform TapJets is raising $6m at a valuation of $20m by issuing 30% of its (tokenized) shares to accredited investors.

POSTSCRIPT

Should you need additional content to keep you entertained over the weekend, we highly recommend a specific webinar.

Streamed online this week, the webinar saw representatives from law firm Dilendorf&Khurdayan, tokenization platform Securitize, security token exchange OpenFinance and broker-dealer Cuttone discuss STOs. Find it here on YouTube.

See you next week! 👋

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SecurityToken.it is created by Infloat. At Infloat, we actively explore the applications and potential benefits of tokenized assets.