IBM Plans Stellar-Based Stablecoins & SmartLands Launches its First STO
Each week we share the latest news in the Security Token industry. This is newsletter #28 — subscribe here to get it in your inbox every Thursday.
“While the transaction requirements of financial services applications are not trivial, they are also not as demanding as mainstream consumer applications where millions of users are transacting with each other and the system in real-time.”
This is a quote by Fred Wilson of Union Square Ventures, who writes the popular avc.com blog. In the post, he discusses Decentralized Finance and indicates why it is one of the sectors where we’ll see the first use cases of crypto.
We’ve spoken about DeFi a few times before in this newsletter; and you’ll find a report on the subject in the long reads section. All of this shows the growing importance of DeFi, which as a ‘sector’ gives us a great insight of what the future of finance could look like.
Data is, in other words, an asset. Like other assets, it can be tokenized and decentralized into a public blockchain. It’s not hard to imagine a future of every meaningful piece of data in the world will be represented by a private key.
— By Storecoin’s creator Chris McCoy on Techcrunch
🏦 IBM has launched Stellar-based payment network World Wire, and signed 6 LOIs with banks around the globe to issue stablecoins. They’ve also published a (quite promotional) video with the VP of IBM Blockchain.
🚀 Security token platform Smartlands has acquired a majority stake in Shojin Financial Services Limited — and with it, kicked off its first STO: A student accomodation in Nottingham, UK. Part of the reason for the acquisition is that the SFS holds an investment license from the FCA that allows it to raise capital globally.
💱 The common (non-tokenized) shares of Canadian digital securities platform DigiMax can now be traded on the Canadian Securities Exchange.
👷 Together with insurance giant AXA XL, New York startup Assurely launched ‘CrowdProtector’, an insurance for crowdfunding and security token offerings. Great to see such products pop up, reducing the hurdle for investors to get involved.
🖋️ The American Bar Association has released a massive 353-page report on digital asset regulation, looking at regulations on the international, national and state level. We haven’t yet had the time to take a good look at this, but it seems pretty all-encompassing.
💵 Digital assets research company Delphi Digital published a report on the DeFi market, covering different decentralized exchanges and the growth of MakerDAO, Compound and Dharma.
📃 StartEngine is the first token project under a Reg A+ to receive qualification from the SEC for its offering. But as Dilendorf & Khurdayan show, there’s not so much left of the ‘token’ part.
👀 Not really a long read, but more of an overview. A Telegram user put together a list of all token contracts created using the Polymath Token Studio. The snapshot of 17 March offers an insight into the type and variety of projects using Polymath.
💰 Middle East-focused investment company SGH Global is planning to issue a security token to raise $100m. Two investment firms have already agreed to invest $10m each, but not much else is known about the deal.
💊 Pharmaceutical company Verseon intends to launch an STO later this year, using the platform of its subsidiary Blockrules. In return for the invested capital, investors get the right to a percentage of the company’s future drug program revenues.
If you read Token Economy like we do, you may have seen a reference to the ‘tokenized Lambda Income Share Agreement’.
Lambda School is an online learn-to-code bootcamp that you pay for with a share of your income after graduating. Interestingly, the people at OpenLaw (a blockchain protocol for legal agreements) have created a template of a tokenized version of this income share agreement.
The idea is that an ERC20 token represents the agreement with your name on it. The token can then be transferred or sold to another party; including all rights and economic benefits.
While the template has not yet been used, it does show the versatility of tokenization — and how we can create new financial products that are easily transferrable.
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.