A global financial horizon — how digitized securities are taking over the world

Not so long ago, Utility Tokens, ICOs (Initial Coin Offerings) and Cryptocurrency trading was the hottest thing around. Blockchain-based solutions and decentralized applications had attracted some of the best coders, analysts and investors to take part in the new exciting world of Distributed Ledger technologies (DLT’s). But things are now on the brink of change.

The SEC (U.S. Securities and Exchange Commission) has deemed some “Utility tokens” of past token offerings as digital securities subject to securities regulation and the bearish market conditions of early 2019 have turned most of the ERC20 utility tokens meaningless in practice while the issuing company is struggling to sustain its activity.

This has forced/urged the industry to examine this query and begin a new phase, a more mature one with rules predefined and marketplaces acting accordingly. Hence the birth of Regulated digital securities backed by Blockchain technology.

Unlike most ICOs, potential Investors of Asset-Backed digital securities have a clear understanding on what they receive in return for their Investment and under which regulation they have been structured (The SEC, ESMA or other commissions, depending on the geographic location). A digital security token could be issued and represent Revenue shares, Equity, Bonds or even board power rights of a tokenized company.

One of the initial use-cases in this emerging industry these days is obviously Real estate owners which use fractional holdings backed by smart contracts to digitize their physical assets. but today we can see more and more companies and startups base their tokenization models on their IP (Intellectual property), Same goes for Equity funds and Venture capital GP’s who uses digital securities for Rev-share distribution.

With better legal and financial engineering, smart contracts as a condition and regulatory guidance, digital securities enable investors to benefit from the advantages of a decentralized approach while keeping an “old-school” state of mind in regards to capital investments and ROI.

A Worldwide trend

By offering more agile investment structure (lower investment minimums, better locking periods, exit points and compliance with applicable law), the new STO ecosystem gives rise to innovative, exciting marketplaces and financial instruments previously inaccessible to many retail investors due to factors such as international restrictions and high entrance levels.

As the ecosystem matures, digital offerings will become quicker and easier to access and invest in. The ever-advancing technology, the secured and transparent approach, and a strong blockchain congregation are all unified to create the most important thing Investors seek for — Liquidation & Tradability, this is why Tokenized asset attract large investors and financial institutions (who are already seeking out collaborations in STOs) and various governmental entities. The idea one can trade, sell or liquidize his digital security on secondary markets and exchanges is the main differentiator to the traditional investments methodologies which are usually based on Locking or vesting periods. The Investor will now have the same Skin-in-the-game only with much better exit point for his capital.

By January 2019, the world has already seen the offering of a few large scale Digitized assets, based in the US, Europe, Asia, and Latin America. We expect this trend to reach an even bigger universal level by the end of 2019.

By 2022, at least 15% of all capital investments will be backed by digital securities.

Stellerro is the first Technological Underwriter of its kind, spearheading a disruptive umbrella for the emerging Digital Securities Offerings industry, ensuring companies meet the right compliance conditions of numerous regulated jurisdictions. Stellerro serves as the bridge between traditional capital markets and the innovative world of Digital Securities backed by Blockchain technologies and has aligned with top global financial institutions and investment funds as a dedicated partner to enhance the integration of both ecosystems.

Here at Stellerro we have been working vigorously over the last year to offer our partners a holistic solution for their digital securities needs. Stellerro can walk you through the entire process from consulting and tokenizing the required assets to underwriting and onboarding their prospected investors. Stellerro understands the need to support for national cryptocurrency solution as countries are rapidly adopting a regulatory framework to the point that Russia, Ukraine, and Venezuela are planning to launch a state cryptocurrency and adopt a set of financial digital securities.

Last week, Stellerro launched new multi language sites (and are aiming to launch 6 more by the end of February) dedicated to our overseas partners and potential new clients and ventures:

https://CN.stellerro.com/

https://JP.stellerro.com/

https://DE.stellerro.com/

https://ES.stellerro.com/

https://RU.stellerro.com/

We stand at the threshold between traditional capital markets and the innovative world of Digital Securities backed by Blockchain technologies. Stellerro has aligned with top global financial institutions and investment funds as a dedicated partner in enhancing the integration of both ecosystems.

If you are an asset owner, entrepreneur or a startup, anywhere on the planet, Stellerro is your brain trust for data and knowledge, Your Underwriter and Financial Distributor.

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