Web3 And Digital Asset Securities
Jul 12, 2022
Last week, Security Token Market (STM), the leading global oracle for all digital asset security financial data and research, achieved a major industry milestone when it launched the first-ever Web3 crowdfunded capital raise on Securitize. While the financial news often focuses on the boom and bust cycles of digital assets like bitcoin and ether, digital asset securities like STM represent a significant step forward in the evolution of financial services. This is because they operate under the same regulatory exemptions that traditional financial services follow, but do so more efficiently and at less cost to investors. Using digital asset securities, businesses can efficiently raise capital and investors can gain exposure to new investment opportunities faster, more efficiently, and with greater control than using traditional methods.
Introducing Web3 Crowdfunding
May 9, 2022
Crowdfunding (raising capital using securities exemptions) has become a popular option for companies looking to fund and drive growth from their own customers and fans in tandem with institutional investors and venture capitalists. This is partly because exempt offerings enable a broader audience to participate in these alternative investments. From July 2020 through June 2021, nearly twice as much money was raised in exempt offerings as through public offerings, and the industry has grown 33.7% in 2021 alone1 - a trend that’s expected to increase by ~$240 billion from 2021 to 2026, at a CAGR of 16.81%.2 This double-digit growth is just part of what’s driving companies to crowdfund.
Apr 4, 2022
You’re driving down the highway to the big game. The cars ahead of you slow to a crawl as the road narrows to one lane. Even though the stadium you’re going to is just around the bend, it’s taking forever to get there. What if there was a way to change the rules of the road so when there’s overflow traffic, more people could get to the game and cheer on their team?
Navigating Digital Asset Risk
Apr 4, 2022
Accredited and institutional investors seeking digital asset exposure have felt blind for too long. Investors hear about the incredible potential of digital assets, but their inability to evaluate fundamentals leaves them unable to estimate risk. Are investors really flying blind, or has the digital asset investing ecosystem simply been poorly lit? Let’s turn on the lights and find out.
Crowdfunding Is Now A Serious Way For Privately Held Businesses To Raise Serious Capital
Mar 22, 2022
One of the biggest challenges founders and CEOs of startups face is funding: courting angels and VCs, pitch decks, travel, and meetings, getting ghosted, negotiating and swallowing unreasonable terms, eroding control–all at the expense of actually running and growing the business. When you hear the word “crowdfunding” your mind may immediately go to Kickstarter or Go Fund Me, yet in 2021 crowdfunding emerged as a serious option for serious businesses to potentially raise serious capital.
Using Digital Dollars as a Cash Hedge
Feb 24, 2022
Like a wanderer in the desert who would pay anything for a cold glass of water, digital asset markets are starved for U.S. dollars and will pay to use them. The strong demand for full-reserve digital dollars like USD Coin (USDC) is putting a premium on supply. This supply-demand imbalance creates opportunities for borrowing and lending, which can generate significant yield for accredited and institutional investors. While alternative investments have long been a hedge for institutions, one alternative might not yet be in view – stablecoin yield.1
Everything Is Digital. Why Isn’t Your Transfer Agent?
Feb 15, 2022
Choosing the right stock transfer agent may be one of the most overlooked yet mission-critical aspects of your business. Founders often consider many factors like price, capacity, and track record when evaluating transfer agents. However, the decision can ultimately be minimized because of the last milestone problem. What’s that?
Jan 28, 2022
The Omicron wave of Covid-19 coupled with high inflation, supply-chain issues, and the increase in public market volatility has left the United States economy upside down and backwards. Restaurants and many other service industry businesses are still struggling to maintain enough healthy workers to keep their doors open. The continued inability to travel like we used to is leaving consumers with excess cash to spend locally, exacerbating the supply chain shortage and fueling inflation. Even blue-chip bank stocks, such as Goldman Sachs and JPMorgan, which exceeded earnings expectations, are feeling the inflationary pressures reflected in their lowered valuations at the start of 2022.
The Tokenization of Institutional Funds
Jan 28, 2022
In 2021, prominent banks like JPMorgan Chase, BNP Paribas, and BNY Mellon introduced blockchain conversations to institutional audiences. In 2022, tokenization will feature prominently in financial discussions across the country.
2022: The Year of Tokenization
Jan 20, 2022
“We see 2022 as possibly the year of the blockchain bridge…or the year of financial tokenization,” JPMorgan analysts recently predicted. That is to say, 2022 may be the year when blockchains take a noticeable role in bridging our traditional ‘paper-based’ system to a more efficient, truly digital future.
A Better Way to Issue and Manage Your Stock
Dec 17, 2021
The business rule-of-thumb, “underpromise, overdeliver,” was completely inverted this month when former BuzzFeed (NASDAQ: BZFD) employees who owned stock could not cash out.
The Digitization Of Finance Unlocks New Investment Opportunities
Dec 16, 2021
It’s no secret that institutional investors realize average rates of return far better than individual investors. One of the biggest reasons why is that they enjoy opportunities most investors do not.
#HyFi for Security Tokens — pooled assets and ownership tracking
Dec 22, 2020
This post is part of a series that analyzes how Digital Securities can benefit from DeFi protocols bridging Decentralized and Centralized Finance in a Hybrid approach (#HyFi), and the different aspects that need to be taken into consideration to leverage this ecosystem while remaining compliant. You can read Securitize’s introduction to HyFi here, learn about the impact of KYC and transfer controls here, and understand the impact of assets being deposited into smart contracts here.
#HyFi for Security Tokens — Smart Contracts as token holders
Dec 22, 2020
This post is part of a series that analyzes how Digital Securities can benefit from DeFi protocols bridging Decentralized and Centralized Finance in a Hybrid approach (#HyFi), and the different aspects that need to be taken into consideration to leverage this ecosystem while remaining within compliance requirements. You can read Securitize’s introduction to HyFi, and learn about the impact of KYC and transfer controls.
#HyFi for Security Tokens — KYC and asset transfer controls
Oct 20, 2020
This post is part of a series that analyzes how Digital Securities can benefit from DeFi protocols bridging Decentralized and Centralized Finance in a Hybrid approach (#HyFi), and the different aspects that need to be taken into consideration to leverage this ecosystem while remaining within compliance requirements. You can read Securitize’s introduction to HyFi here.
Introducing Project Aquaman: Driving liquidity in the digital securities market
Oct 15, 2020
One of the main promises of digital asset securities, or security tokens, is the ability to drive liquidity for private securities. Private capital markets are much larger and growing faster than public markets, but they are mostly illiquid. According to the World Federation of Exchanges, private capital markets raised $2.9T in 2019, more than double public capital markets at only $1.4T, and in 2020 that trend is continuing in spite of the burgeoning IPO market and the rise of SPACs. While public markets are extremely liquid, with $33T annualized volume trading, private markets are extremely illiquid with only $0.1T annualized volume trading, an astounding 330x less.
DeFi and Security Tokens - Balancing compliance with new financial innovations
Oct 12, 2020
At Securitize we have been tracking the growth of Decentralized Finance (DeFi) protocols and projects over the last few months with the intent of learning how we might improve upon these compelling innovations through the use of Digital Securities (security tokens).
Why a Digital Transfer Agent Is Better Than the One You’re Using Right Now
Jul 24, 2020
Transfer agents hold a curious place in the relationship between organizations and their investors.
Securitize iD: The Ultimate Verification Process
May 6, 2020
Instant Access: Easy, Secure and Compliant Peer-to-Peer Transactions of Digital Securities
Apr 22, 2020
Trading Digital Securities: non-custodial and custodial marketplaces
Mar 18, 2020
One of the main advantages that tokenization brings to securities is the potential for liquidity.
Register your wallets on the Securitize platform with Metamask and Coinbase Wallet
Nov 8, 2019
Securitize delivers trusted global solutions for creating compliant digital securities and as such provides companies, funds, and institutions with a more cost-effective, efficient, and compliant way to issue and track regulated securities while improving investor relations. At Securitize, we are constantly working to better the relationship between investors and issuers by leveraging the inherent advantages of digital securities.
Understanding Transfer Restrictions for Digital Securities
Jul 8, 2019
Thanks to the Digital Securities technology, investors can now hold their securities ownership records in the form of tokens (also known as “Security Tokens”), and these tokens can be kept in any wallet. This brings with it the advantages of fractional ownership, the ability to move those assets between different marketplaces that allow 24/7 trading, and direct access to trades between individuals by the simple mechanism of transferring those tokens.
How to use Coinbase Wallet for Securitize’s Digital Securities
Jun 16, 2019
The Securitize Platform provides a simple and convenient way for investors to access Digital Securities Offerings and follow the full lifecycle of their investment. Investors can on-board and provide their information, decide how much they want to invest and which currency to use, and register their wallets to receive the tokens that reflect their Digital Securities investment.
Securitize Platform 3.0 Release — Enter the Control Panel
May 13, 2019
Securitize’s development team has been hard at work over recent months in order to create a new release for the platform. Version 3.0 will provide a giant leap for supporting organizations wanting to issue Digital Securities, enabling the management of their lifecycle through secondary trading and more.
Investing & Paying Taxes on Digital Security Offerings
Mar 3, 2019
Disclaimer: This post is provided for informational purposes only. It is not intended to provide, and should not be relied on for, tax, legal, accounting, nor investment advice. You should consult your own advisors before engaging in a Digital Security Offering or related transaction.
New digital security milestone achieved: first secondary trade on a regulated custodial exchange
Jan 11, 2019
It is no secret that digital securities (or security tokens) have the potential to truly transform capital markets. Utilizing blockchain technology, these compliance-friendly tokens can drive instant liquidity and unlock investment opportunities in private assets for investors around the world.
The Demise Of The ICO And The Rise Of The Digital Security
Dec 7, 2018
When the Ethereum blockchain came online in March of 2016 (the first stable version) it ushered in a new era in funding for startups. Easily created “coins” or “tokens” on Ethereum’s public blockchain allowed virtually anyone with an idea to raise funding from global sources with little or no interference from regulators.
Five Things Investors Need to Know About Digital Securities
Oct 14, 2018
In 2017, Bitcoin prices went up by nearly 1,700 percent in a single calendar year. It was a monster year for anyone who invested in cryptocurrency before 2017 and a satisfying validation of their early belief in cryptocurrency and blockchain technology. For those who missed it or arrived late to the party, they’re probably still playing the “could-have-should-have” game with the current value of their portfolio.
Whether Utility or Security Tokens, What We’re Really Talking About are Digitized Securities
May 1, 2018
The relatively young space that is built on an exciting, new technology platform called blockchain, or decentralized ledger technology (DLT), has enjoyed the attention of invigorated developers and investors. These players are working to define the future of the industry, and one key underlying concept, the token, is a point of focus.