The Week in Security Tokens Ending 8 May 2020

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The mention of Switzerland conjures up fine watches, exquisite chocolate, and stodgy banking. This week in Security Tokens sees Switzerland sprucing aggressively in the banking tradition – launching a world-class STO platform for Europe and funding an ambitious digital artworks platform, in part, with a security token sale. Here is our pick of the 3 most important Security Tokens news stories during the week:

TokenSoft Expands Security Token Services to Europe

TokenSoft is bringing its security token issuance platform to Europe through a Switzerland-based counterpart, TokenSoft International AG. The regulated STO platform announced Wednesday that it struck a licensing deal with its eponymous European partner, who now has exclusive continental distribution rights for TokenSoft’s tokenization software.

Why It Matters:

The American Tokensoft (Tokensoft Inc.) does not have ownership interest of any kind in the Swiss licensee partner Tokensoft, which was formed earlier this year in Zug. Tokensoft Inc.’s move into Switzerland reflects STO bullishness on the part of both parties. TokenSoft retooled its platform to conform to Swiss regulations and the European Union’s GDPR.

Ethereum-Based Digital Art Platform ArtID Launches Security Token Offering

Ethereum-powered digital art platform ArtID launched a security token offering to fund the further development of its marketplace. ArtID is seeking five million euros in the offering and reached the soft cap set at 580,000 euros within one week.

Why It Matters:

This news demonstrates how blockchain integration is playing a key role in structuring digital finance and digital products.  Lugano, Switzerland-based ArtID is a unique, active digital artwork platform with over 1,000 artworks currently available for purchase.  Each artwork is blockchain-verified as original and unique. To date, ArtID has supported the purchase of 6,000 artistic and limited edition photographs.

The platform’s advisor for the STO is global corporate finance firm Kreston RS. Luxembourg-based tokenized investment platform STOKR is hosting the offering. 

Wall St Veteran Launches Crypto-Powered Social Network and Marketplace

CoinLinked, a social media network and marketplace platform founded by Wall Street veteran Jenny Q. Ta, launched on May 7.  The platform will feature a utility token that rewards users for activity on the platform, and can also be redeemed for discounts on CoinLinked’s marketplace.  CoinLinked has designed two native tokens — a security token for speculators seeking to invest in the platform, and an ERC-20 utility that will serve multiple functions on the CoinLinked platform called CoinLinked Coin or CLC.

CoinLinked users will be rewarded CLC in exchange for producing content on the platform, including uploading pictures or videos, sharing links, or engaging with existing posts.  Speaking to Cointelegraph, Ta described CoinLinked as the “first-ever blockchain-based social network and crypto-commerce platform,” likening it to a hybrid decentralized/centralized amalgamation of Twitter, Instagram and Amazon.

Why is Matters:

The embrace of crypto by a a successful serial finance entrepreneur like Jenny Q. Ta is a validation for the marketplace.  Her targeting e-commerce together with social media is an ambitious effort.  Coinlinked vows to never sell private user data, or to censor content that is legally permissible.  CoinLinked says its security token will soon be tradeable on regular security token exchanges like OpenFinance.

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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