Security Token news for Week Ending Friday 17 April 2020

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

ZenSports Issues Security Token Dividends 

This week, the blockchain-based mobile betting app, ZenSports announced the issuance of quarterly dividend payments to SPORT security token holders in the coming days. Notably, ZenSports was one of the first betting platforms to embrace security tokens.

Why it matters: This is a big step forward for a sports token to pay dividend. The paying of a quarterly dividend is a big confidence-booster for San Francisco-based ZenSports. The SPORT security token was sold to accredited investors through a Regulation D/Regulation S offering in 2018, with ZenSports entering the market as one of the first decentralized peer-to-peer sports betting mobile apps. The Company’s direct betting system obviates the need for bookmakers. ZenSports has ambitious plans for more crypto integration, with the planned issuance of a utility token this year.

Black Manta Capital Introduces $12 Million Real Estate Security Token Offering

Germany-based Black Manta Capital Partners has introduced a $12 million security token offering (STO) for the Berlin real estate market.  The initiative is reportedly a collaboration with Tigris Immobilien, a German real estate company. Approximately 2000 sq meters of real estate property, which mainly consists of individual small apartments units (40 to 60 sq meters each) are being offered by the project. Construction is scheduled to be completed within the next two years. The units may be sold to owner-occupiers and qualified investors.

 

Why it matters:  This is another step toward real estate tokenization in Germany.  This offering will allow ordinary investors to participate in the type of deal usually restricted to institutional or accredited investors. Minimum investment is €500. The STO is regulated by Germany’s financial regulator, BaFin.

 

Algorand has launched a multi-million dollar program to foster its blockchain ecosystem

The Algorand Foundation has launched a new grants program worth $50 million in ALGO tokens to build out its borderless economy.  To spur ecosystem growth, the foundation announced the launch of a 250-Million Algo Tokens (ALGO) Grants Program this week. The program has a long term, global focus and will provide funding to projects building apps that support infrastructure, end-user applications, and research innovation on the Algorand blockchain.  The potential use cases include DeFi, payments, asset exchanges, social media integrations, supply chain initiatives, copyright authentication, and asset tokenization. Algorand intends to enable an active blockchain community via a public, permissionless, pure proof of stake blockchain with an open-source approach.

Why it matters: This may be a shot in the arm for global blockchain infrastructure.  Algorand, Inc. is a technology company founded by MIT professor and cyptography pioneer, Silvio Micali. The Algorand platform is designed to deliver true decentralization, scale and security.  In June of 2019, Algorand raised $60 million in four hours by auction of Algo coins via Coinbase out of Singapore. The previous year it scored $66 million in a conventional capital raise from American East Coast VC firms.

The Algorand Foundation helped make the World Chess hybrid IPO possible,  a hybrid IPO that included a security token offering and a London Stock Exchange listing.  Conducted via digital securities platform, Securitize, on the Algorand blockchain, the Hybrid IPO utilized a new Algorand feature making it possible to tokenize and issue any type of asset, in this case, stock.  Securitize has a partnership with Algorand to support its DS Protocol, which will allow issuers the ability to issue Securitize powered digital securities on the Algorand Blockchain.

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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