eToro Buys Firmo Network

Each week we share the latest news in the tokenized assets industry. This is newsletter #29— subscribe here to get it in your inbox every Thursday.


We’ve seen a variety of companies offering ‘tokenized X’. From art to automobiles, and from silver to diamonds.

But this week, there’s a story (below) about plans for tokenized palladium: A rare metal more valuable than gold which has a range of use cases including catalytic converters in cars, dental fillings and jewelry. In this case, tokenized palladium will surely not be used by dentists, but rather by commodity traders.

So what we wonder is not which other precious metals will be tokenized (surely it will be almost all of them) — but for which of these metals does tokenization offer the best use case?

QUOTE

Blockchain specialists forget a key advantage of tokenization: every type of token can be listed on an exchange and have a secondary market. Every token can be pledged and used as collateral; this unlocks financial resources.

— By Lykke CEO Richard Olsen on Twitter

NEWS

🔗 Social trading/investment platform eToro has bought Firmo Network, a protocol for smart contracts for derivatives, for an undisclosed amount. The goal of the Firmo team will be to tokenize all assets on eToro.

💰 Crowdfunding platform Republic has acquired RenGen, a crowdfunding platform focused on security tokens which once hosted the tZero offering. As part of the deal, the companies announced a new token called Note, which will represent Republic’s entire portfolio.

📈 Decentralized financial contracts platform UMA (Universal Market Access) has launched the US Stock Index Token, an ERC20 token that represents an index of the 500 largest listed US stocks. The token can be bought with DAI on a DEX, making it truly a decentralized venture.

🔩 The richest man of Russia is planning to set up a platform for commodity tokenization, including tokenized palladium. Depending on a law on digital financial assets, the platform may be launched at the end of the year.

🇨🇳 The Beijing Internet Finance Industry Association released a statement last week, (re)confirming the stance of the Chinese government that ICOs, STOs, and other similar fundraising activities are illegal financial activities.

🇭🇰 Interestingly, today the Hong Kong Securities and Exchange Commission also confirmed its stance on STOs, saying that in Hong Kong, security tokens are likely to be securities, and as such, are subject to the local securities laws.

LONGER READS

🎙️ An interesting interview with a Professor of Programming Languages and Systems from the University of Copenhagen; on linking physical objects and their virtual representations, and the limitations of decentralization.

⚖️ R3 has released a report on business use of stablecoins. The report covers the different types of stablecoins, their current and potential uses, and how they could fit into the current payment landscape.

💸 According to the Security Token Group, over $500 million has been invested in the security token infrastructure so far. Here’s their list of investments, raises and acquisitions in the space.

NEW STOs

🏬 Token issuance platform TokenMarket is issuing its own tokenized security. The private placement is currently open which will be followed by a crowdfunding campaign for the tokenized equity in April.

POSTSCRIPT

This week the CryptoValley Summit 2019 was held in Zug, Switzerland. We haven’t seen any videos of the event yet, but one interesting topic was the Traditional Banks vs Crypto Challengers.

Over the last year, new banking services like Bank Frick and Sygnum have positioned themselves as ‘blockchain banks’, focussing on ‘the future of finance’.

It will be interesting to see how this plays out. Can new banks leapfrog their way into the future of finance, by going from 0 to 1 and avoiding legacy infrastructure? Or will it be existing banks that, with incremental change, can offer more and better digital asset services, without additional risk?

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.