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- šØš± Chileās CSD Just Got Spicier: DCV Upgrades for Security Tokens
šØš± Chileās CSD Just Got Spicier: DCV Upgrades for Security Tokens
š¤ AI-Powered Security Token: Smart Wealth and Chartered Investment
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Goooood Morning, Rainmakers! āļø
šŗšøFor those of you in the US, I hope you had a fantastic 4th of July Weekend!šŗšø
As always, we have two captivating topics for you to dive into:
1ļøā£ šØš± Chileās CSD Just Got Spicier: DCV Upgrades for Security Tokens
2ļøā£ š¤ AI-Powered Security Token: Smart Wealth and Chartered Investment
Without further ado, it's time toā¦
Get Liquid š§
A MESSAGE FROM MASTERWORKS
A million dollar Banksy got investors 32% returns?
Mm-hmm, sure. So, whatās the catch?
We know it may sound too good to be true. But itās not only possible, itās happeningāand thousands of investors are smiling all the way to the bank, thanks to the fine-art investing platform Masterworks.
These results arenāt cherry-picking. This is the whole bushel. Masterworks has built a track record of 8 exits, the last 3 realizing 10.4%, 35%, and 13.9% net returns even while financial markets plummeted.
But art? Really? Okay, skeptics, here are the numbers. Contemporary art prices:
Outpaced the S&P 500 by 131% over the last 26 years
Have the lowest correlation to equities of any asset class
Remained stable through the dot-com bubble and ā08 crisis
Got your attention yet? Offerings can sell out in just minutes but Whatās Drippinā readers can skip the waitlist with this exclusive link.
āNet Return" refers to the annualized internal rate of return net of all fees and costs, calculated from the offering closing date to the date the sale is consummated. IRR may not be indicative of Masterworks paintings not yet sold and past performance is not indicative of future results. See important Regulation A disclosures at masterworks.com/cd.
šØš± Chileās CSD Just Got Spicier: DCV Upgrades for Security Tokens
This weekās newsletter comes to you a couple days later due to 4th of July, and thanks to that we get to squeeze in this news coming out of Chile! Their central securities depository, DCV, is upgrading to use Nasdaqās digital assets capabilities for issuance, registration, and settlement. This will include lifecycle events such as interest payments.
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This upgrade will still keep the Deposito Central de Valores (DCV) interoperable with other depositories, yet enhanced for tokenized assets. Some may say that blockchain will replace central securities depositories (CSDs) and while that may be true one day, today CSDās are proactively integrating distributed ledger technology to support legacy and new systems.
As we saw in late 2022, SIX Digital Exchange (SDX) has issued bonds with UBS on both their digital CSD and analog version, allowing those preferring tokenized versions to reap the benefits without excluding traditional investors from participating.
This CHF375 million bond was tokenized November 2022 making UBS the first commercial bank to tokenize and trade on a regulated digital exchange. The securities are strategically also held analog on the SIX CSD (traditional) to avoid scaring away investors due to a technology-based barrier to entry. While SIX CSD held them off-chain, their integration with SIX-CSD enabled them to still issue on-chain and reaping the blockchain benefits.
Congratulations to Chile on this forward-thinking move, great example of yet another region embracing tokenized securities šš¼
The vision that has mobilized us to advance in the DCV Digital project, hand in hand with Nasdaq is, with a solid focus on clients, recognizing the need to move towards a modern capital market, with access to standards and world-class technology that allows speeding up and simplifying processes without neglecting the security that our business and our clients need.
š¤ AI-Powered Security Token: Smart Wealth and Chartered Investment
Smart Wealth (Switzerland) and Chartered Investment (Germany) are introducing what they claim to be the world's first security token for an AI-based multi-asset investment strategy. This issuance is in accordance with the German Investment Code (eWpG) and BaFin regulations.
According to their press release, āStructuring security tokens requires a blend of asset management, legal, structuring, and IT expertise to fully leverage the benefits of blockchain technologyā which I believe the Security Token Advisors team can attest to.
Smart Wealth AG and Chartered Investment are using AI to dynamically change allocations in client portfolios. Their flagship product, Multi Asset Global Rotation AMC, launched in February 2021 and now they are offering investors tokenized exposure to it via this offering. This even includes its own ISIN (identification number for securities) on-chain!
Due to the high correlation between cryptocurrencies, many customers seek suitable investments in traditional assets such as liquid stocks and ETFs while continuing to hold their assets on the blockchain to avoid higher fees, default risks, and maintain full control and transparency over their investments.
Investors will be able to self-custody their security tokens and are taking full advantage of the leading legal framework of the Electronic Securities Act which anticipates European MiCA, making it future-proof.
This isnāt the first time weāve seen AI enter tokenization though. Just a couple months ago I covered OpenCall Capitalās AI-powered investment platform which was designed to give investors and edge via market insights and other features. Smart Wealth is offering a tokenized issuance of their flagship investment product while OpenCall Capital is offering infrastructure/investment tools. Regardless, itās exciting to see these two worlds come together as we go into Q3 2023.
Have any thoughts on this? Let me know on Twitter @Jason_Barraza_
š¦ What else is Drippinā
The Liquidity Problem - STA Success Network
The STA Success Network will be hosting a panel on The Liquidity Problem on Wednesday, July 19th at 9am EST.
Jason Barraza is joined by Marcus Paart of Equity Shift, Julian Kwan of IX Swap, and Gabriel Sadoun of DigiShares for a meaningful conversation around a problem the whole tokenization industry suffers from.
Have questions you'd like to ask the panel? Email them to Jason ([email protected])!
This is a Success Network Members-Only Event, available under both the STA Insights and full Success Network plans.
Platform Spotlight: Securrency - STA Success Network
The STA Success Network will be hosting a spotlight on Securrency on Wednesday, July 26th at 1pm EST.
Securrency rang in the New Year with a new CEO - Nadine Chakar from State Street Digital. Nadineās appointment comes shortly after WisdomTree, Inc. announced 9 new SEC-approved blockchain funds with Securrency Transfers, the transfer agent arm of Securrency.
Peter Gaffney is looking forward to discussing the firm's patented Compliance Aware Token (CAT) and institutional control location services for security tokens with Beralda Kokoshi.
Have questions for Beralda? Email them to Peter ([email protected])!
This is a Success Network Members-Only Event, available under both the STA Insights and full Success Network plans.
State of Security Tokens 2023 - Q1 Extended Report
The Security Token Advisors State of Security Tokens 2023 - Q1 Extended report is brought to you by Provenance Blockchain Foundation!
Our Head of Research and Institutional, Peter Gaffney, dives deep with updates from across the industry, from issuers to platforms to protocols. This piece will detail the macro trends taking shape within the tokenization space as a function of service providers like transfer agents, broker-dealers, alternative trading systems, custodians, and third-parties, as well as issuers, blockchain foundations, asset managers, investment banks, and activity that Security Token Advisors sees on its advisory side
Take a read for analysis on common themes emerging for both primary and secondary markets! š
This is not financial or investment advice.
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Everything in this report is for informational and entertainment purposes only. Nothing in this report should be taken as financial advice or as an inducement to purchase or sell any security. Nothing in this market report should be used as legal advice. Always do your own research before making any decisions regarding financial transactions of securities.