💰 DigiShares is Open for Investment

🏦 UBS Tokenizes Intraday Repo with Asian Bank

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Gooood morning, Rainmakers! ☀️

As always, we have two captivating topics for you to dive into:

1️⃣ 💰 DigiShares is Open for Investment

2️⃣ 🏦 UBS Tokenizes Intraday Repo with Asian Bank

Without further ado, it's time to…

Let’s Get Liquid💧

A MESSAGE FROM MASTERWORKS

A million dollar Banksy got investors 32%?

Mm-hmm, sure. So, what's the catch?

We know it may seem too good to be true. But it's not only possible, it's happening — and thousands of investors are smiling all the way to the bank, thanks to the fine-art investing platform Masterworks.

These results aren't 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 plumetted.

But art? Really? Okay, skeptics, here are the numbers. Contemporary art pieces:

  • Outpaced the S&P 500 by 131% over the last 26 years

  • Have the lowest correlation to equities of any asset class

  • Remained stable throughout the dot-com bubble and '08 crisis

Got your attention yet? Offerings can sell out in just minutes but What's Drippin' readers can skip the line with this exclusive link!

💰 DigiShares is Open for Investment

If you’re in the tokenization ecosystem you’ve probably heard of them but for those not familiar: DigiShares is one of the leading providers of white-label tokenization platforms for real world assets, combining

  • smart contract creation

  • investor onboarding

  • cap table management

  • peer-to-peer trading

in an end-to-end solution. With DigiShares, asset owners and fund managers can automate processes, more easily fractionalize ownership and democratize access, and increase liquidity through the built-in bulletin board or external exchanges.

And now some of you can participate in their success by investing in their RegD/RegS offering!

According to their press release, DigiShares is raising a target of $5M from US accredited and non-US investors. This will be used to hire staff with a goal of adding new functionalities and integrations, grow their sales team, and even more exciting…

accelerate the creation of the first regulated decentralized exchange (DEX) for real estate security tokens!

That’s exciting! But what has DigiShares done so far?

Great question! Of course you’d like to know what their traction looks like… what potential investor wouldn’t?

I gotcha 👇 

So far the platform’s had over 100 clients, including real estate developers (some with over $1B in assets), investment platforms, broker-dealers, and law firms!

Here’s some information on one of the offerings they’ve been a part of:

MarketSpace Capital

  • Real Estate Private Equity Firm with $400 million in assets that issued an Ethereum-based security token on a 250-unit active adult community known as The Spot at Myra Park

  • The offering raised $6.5 million from 68 investors at an average of $250,000 per investor

  • The Spot at Myra Park token, called Myra Park Investors LP ($MYRA), listed on the tZERO Alternative Trading System in March 2022 at a market cap of $8.4 million

DigiShares is consistently doing webinars, putting out great content, and of course helping their clients tokenize in a way that they own the experience via the platform’s white-label solution. I could talk on and on about them but time for topic #2.

If you’d like to learn more or invest…

🏦 UBS Tokenizes Intraday Repo with Asian Bank

Last week came with lots of exciting news for tokenization but one I really wanted to cover is UBS tokenizing intraday repos internationally! We’ve all heard of JPMorgan doing this and it’s great to see another bank also drinking the tokenization kool aid.

Before going further… what’s a repo?

Repo is short for “repurchase agreement”. Essentially banks need liquidity overnight and to access that they sell each other securities, usually bonds/Treasury, and buy them back the next day for a small, yet higher price (AKA small interest).

Banks do this all the time with trillions trading every month. The problem is settlement can take some time and in an environment where interest rates are rising, intraday liquidity’s importance is also on the up and up.

To those banks that still haven’t tokenized anything I say

Let’s dive into the details 🏊‍♀️

While UBS has done over $1M in tokenized repos per month, they’ve been internal. Basically meaning it ensures they trade between their own subsidiaries.

This is UBS’s first cross-border repo on-chain and they’re using Broadridge’s Distributed Ledger Repo (DLR) technology to do it.

We are empowering leading financial institutions like UBS with the ability to dramatically lower risk and operating costs and see enhanced liquidity.

Horacio Barakat, Head of Digital Innovation at Broadridge

Yes, these are private transactions and goes against the decentralized and transparency arguments of blockchain, however if this is what it takes for banks to feel comfortable using this technology, I’m for it!

I’m sure the cost savings that come with these transactions are significant and… convincing.

After all, who knows what this will enable down the road.

Now this isn’t UBS’ first time around the block(chain)

Last November UBS tokenized a CHF375 million bond using SDX. Although this isn’t the first tokenized bond, this issuance made 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 reap the blockchain benefits.

Overall this is fantastic news! Here’s where I’m stuck: we all know UBS… but who’s the other bank? 🤔 

We’ll be keeping our eyes and ears open and report back to you so keep on reading Rainmakers!

💦 What else is Drippin’

With Real-World Assets (RWA) shaping up to be the theme of 2023 within digital assets, Security Token Market just published a primer that looks at 13 public blockchains and sample cases, as well as shows some love to initiatives on the private blockchain side.

RWAs can take the form of real estate, private funds, mortgages, asset-backed securities, even receivables. Essentially, onboarding traditional or existing assets to the blockchain in order to make use of them in the DeFi ecosystem. The idea is that 1) real-world assets serve as superior collateral than an unbacked stablecoin or digital asset and 2) investors and asset owners yearn to make use of the DeFi ecosystem (lending, swapping, real-time settlement) in a controlled and compliant manner. Ideally, the DeFi ecosystem will provide asset owners with added benefits and precision NOT found in the traditional capital markets landscape.

Keep in mind this is geared towards:
-prospective security token issuers with models from active issuers
-asset managers
-tokenization service providers like digital broker-dealers & issuance platforms
-Layer 1 and Layer 2 blockchains, and private networks

This is not financial or investment advice.

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.

The STA Success Network has made waves with over 100 active members and counting! Security Token Advisors is a premier consulting firm in the tokenization industry and the Success Network allows members to connect to each other, STA’s exclusive research, STM.Co publishing, and more.

This is built for asset managers, issuers, platforms, and all other stakeholders in this space. Take a read at coverage by Securities.io!

Special pricing for founding members until April 18th, check it out and join!