Security Token news for Week ending 24 January 2020

Week ending 17 January 2020 in Security Tokens

Here is our pick of the 3 most important Security Tokens news stories during the week:

One. Silicon Valley Coin by Andra Capital Uses Tezos Blockchain and TokenSoft for Its Security Token Offering

“Andra Capital, a San Francisco based venture capital firm, announced plans to issue Andra’s Silicon Valley Coin (SVC) via a Security Token Offering (STO). Collaborating with the Tezos Foundation, SVC will utilize TokenSoft’s issuance platform and be built on the Tezos blockchain.”

Equity ownership and governance are closely related in early stage ventures, so the use of Tezos is significant.

Two. EMURGO Establishes Strategic Task Force with Uzbekistan Government to Develop Framework for Security Token Offerings & Exchanges

“EMURGO Ptd. Ltd. – EMURGO – the official commercial arm of Cardano blockchain – announces the establishment of a blockchain task force with the National Agency of Project Management (NAPM) under the government of the Republic of Uzbekistan, and alongside advisors KOBEA Group & Infinity Blockchain Holdings, to lead the development of a legal framework for security token offerings (STOs) and exchanges (STXs) in the Republic of Uzbekistan. In addition, EMURGO & KOBEA will advise on infrastructure for digital asset banking & exchange, and blockchain education units, amongst others. EMURGO will provide advisory services to develop the framework and business units with the task force & mutually explore the potential for Cardano’s third-generation blockchain for infrastructure projects.”

Alternative blockchains such as Cardano have to battle the network effects around Ethereum and alternative jurisdictions such as Uzbekistan have to establish themselves in investor’s minds. So expect more partnerships such as this.

Three. GreyP Completes Equity Token Offering on Neufund. Securities are Distributed as Investors Will Also Benefit from Neu Token Distributions & Payouts

“GreyP Bikes (an e-bike company), one of the first “equity token offerings” or ETO to complete a primary issuance on the Neufund platform distributed the digital securities to investors last week. The security offering began last October with a pre-sale followed by a public sale that ended towards the end of November.

As was previously reported in December, GreyP raised €1.4 million from 1017 investors from 34 different countries – . The offering was described as the first IPO every completed on a blockchain-powered platform. The company sold the ETO at a pre-money valuation of €45 million.  Founded by Mate Rimac, who also created Rimac Automobili, GreyP claims the backing of large investors like Porsche and Camel Group.”

We like it when we see issuers who have nothing to do with Crypto/Blockchain as it indicates market traction. It is even better when, as in this case, the issuance transaction close/executes successfully.

We have a self-imposed constraint of 3 news stories each week because we serve busy senior leaders in Fintech who need just enough information to get on with their job.

For context,  please read the chapter on Security Tokens in our Blockchain Economy book and read articles tagged Security Tokens in our archives. 

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