Security Token news for Week ending 7 February 2020

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This week I interviewed an expert on the  Security Token market, Sheldon Freedman a Fintech and funds lawyer at Hassans in Gibraltar.  Sheldon picked our 3 Security Token stories this week. Security Tokens is a big, complex subject that requires legal, technical and commercial  knowledge and we found that rare combination in Sheldon Freedman.

One. Sony Financial Ventures makes strategic investment in security token issuance platform Securitize

Securitize, located in San Francisco, is a U.S. Securities and Exchange Commission-regulated transfer agent. The firm aims to modernize the traditional capital markets by allowing institutions to issue and manage tokenized assets such as equities, fund stakes, fixed income, and real estate.

This strategic investment by Sony demonstrates a maturing of the Japanese security token market and an endorsement of Securitize and its underlying technology. Securitize is a respected global compliance platform for issuing and managing digital securities on the blockchain, including dividends, distributions, and share buy-backs. Securitize partners with exchanges, broker-dealers, custodians of crypto and other financial infrastructure for digital securities.

Two. MSGLD Security Token: Tokenized Gold

The tokenization of precious metals continues to be an area of expansion within the security token sector. This week, UK’s MetalStream joined in on the action with the launch of the MSGLD security token. The news symbolizes a strong desire to bring the advantages of tokenization into the global mining arena.

Tokenized gold is easily “stored” and traded. Each MSGLD token lives on the Ethereum blockchain, is backed by and redeemable for certified gold bullion at a discount to the current spot price. MetalStream aims to transform financing for junior miners through its metal stream contracts and the tokenisation of gold to be delivered under these contracts. MetalStream has partnered with publicly-traded Canadian mining firms, Canamex Gold Corp. and Guyana Goldstrike Inc.

Three. Singapore Continues Its Fintech Love Story:  iSTOX Is Now Fully Licensed

The Monetary Authority of Singapore announced that iSTOX, the popular capital markets platform, had transitioned from the body’s FinTech Regulatory Sandbox into a fully licensed company.

This is a significant development as Singapore continues to build a domestic Fintech economy. High hopes have been pinned on iSTOX, which has received the backing of several Asian institutional investors. iSTOX functions on blockchain technology, offering custody support and trading of digitized securities, as well as equity-raising via equity-linked products.

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 on Security Tokens 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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