Elevated Returns & Securitize Plan to Tokenize >$1 Billion in Assets

Each week we share the latest news in the Security Token industry. This is newsletter #23 — subscribe here to get it in your inbox every Thursday.


As the writer of this newsletter, I will speak at the Fintech Disruption Summit in Copenhagen in two weeks from now.

Using examples from our work at Infloat, I will discuss the fundamentals of security token design.

The summit is the biggest event in the Nordics focussing specifically on tokenized securities. The event’s goal is to inspire and motivate the traditional financial industry to start more blockchain projects.

We offer 25 of our readers a 25% discount to the conference. Reserve a ticket and use the discount code “INFLOAT”; first come first served.

QUOTE

It is possible that some projects may simply not be able to work under the existing Howey framework […]. Basis has announced that it will shut down operations and return $133 million in capital to investors due to the difficulty — if not impossibility — of complying with securities regulations given the team’s vision […]. I am not going to comment on what I think about the merits of any particular project or how the securities laws apply to it, but my antennae will go up when apparently legitimate projects cannot proceed because our securities laws make them unworkable.

— SEC Commissioner Hester M. Peirce’s at a recent speech.

NEWS

🌇 Elevated Returns and Securitize are planning to tokenize more than $1 billion in assets using the Tezos blockchain, as the former company’s President believes Tezos offers more security over other blockchains.

💰 Tokenized venture fund SPiCE VC has invested in London-based institutional digital securities exchange Archax. Details of the deal have not been made public, but Archax is said to go live in the middle of this year, and also launch its own STO.

🤟 Broker-dealer Hamersley Partners has partnered with Own Group tolaunch a new platform for the end-to-end lifecycle management of tokenized securities. Here’s the press release.

💸 San Francisco-based blockchain lending protocol Dharma, which we spoke of a couple of months ago, has raised $7 million in a series A, to build out its decentralized peer-to-peer crypto lending platform Lever.

🎖️ The Enterprise Ethereum Alliance is planning to set up the Token Task Force later this year. The task force will work on specifying and differentiating the different tokens running on Ethereum, focussing specifically on the ERC20 and ERC-721 standards.

LONGER READS

🎙️ A great and candid interview with the CEO of Hyperlink Technology, who is creating an open-source protocol for issuing, trading and governing security tokens on Ethereum.

🏢 The view of an digital asset investment firm (8 Decimal Capital) on the security token landscape. The article is based on a presentation from the SecurityTokensRealised event, and also shows their investment criteria.

👌 In line with the quote from last week’s newsletter, this article on CoinDesk argues in favor of new lingo this industry needs, such as Security-wrapped ICOs, Tokenized Equity and Transactional Security Instruments.

NEW STOs

📱 After raising $100m in VC capital, enterprise mobile app development platform Phunware is now issuing a tokenized security called PhunCoin through a subsidiary. The STO has raised a bit over $100k so far on the Republic platform, with the goal to raise up to $1.07m.
Note that Phunware was also in the news this week because of this WSJ article on how their NASDAQ-listed stock rose with 3,750% last month.

👛 Having raised £4.7 million in their October 2017 ICO, UK-based crypto-powered rewards platform DOVU will launch an STO in April, aiming to raise £2 million.

POSTSCRIPT

Last week we spoke of Neufund paying a dividend to its investors. This was a mistake and we have since corrected it on Medium.

A Neufund team member helpfully pointed out that the €100k in NEU token paid out to NEU holders does not constitute dividend; since it does not concern the revenue of a company, nor is it distributed to equity (token) holders.

See you next week! 👋

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SecurityToken.it is created by Infloat. At Infloat, we focus on the massive potential that tokenized securities will bring.