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💦 Let's get liquid
🇧🇧 Securitize isn't messin' around & Tokenise is regulated in Barbados!
Jonah Schulman
December 20, 2021
GLOZAL is a Miami-based blockchain technology company dedicated to developing innovative solutions for various markets including entertainment, media, and art.
Through blockchain and NFT technology, GLOZAL is focused on transforming the future of music consumption with a new artist-to-fan experience!
Gooood morning, Rainmakers! ☀️
As always, I have two captivating topics for you to dive into:
1️⃣ Let's get liquid: Securitize launched two new tokenized fund products granting institutional and accredited investors exposure to crypto and emerging assets!
2️⃣ Tokenise & Polymesh mesh well: Tokenise is now a fully-regulated security token exchange based in Barbados that is leveraging the Polymesh blockchain!
Without further ado, it's time to…
Get liquid 💧
💦 Let's get liquid
The convergence of traditional securities and blockchain is here!
Securitize, one of the leading issuance and end-to-end security token platforms, announced today the launch of two tokenized funds:
The S&P Cryptocurrency Large Cap Ex-MegaCap Index (Crypto exposure)
The S&P Kensho New Economies Composite Index (Exposure to global markets, by investing in companies from 25+ countries)
Let's get basic on these funds:
Benefits: Inflation hedge potential, diversified crypto exposure, low fees, liquidity, and secure asset management and custody!
Benefits: Global capital markets exposure to 490+ equities that will be transformative, such as robotics, AI, and more!
(Same for both funds)⬇️
Management Fee: .50%
Minimum Investment: $50,000
Investor Demographics: US and International Accredited
Liquidity: Tradable on the Securitize Markets ATS after the lock-up period expires (the US is 12-months & international is 6 months)
Protocol: Algorand
Custodian Partner: Anchorage and Copper (Interactive brokers for Kensho fund)
You had me at liquidity!
Not only do these funds have a liquidity component, but it finally gets rid of the custody headache the majority of people have been experiencing with crypto!
This is a monumental milestone in institutional innovation and the adoption of blockchain for everyone, as it shows there is a great demand and understanding of tokenized investment products.
I have said this from the beginning - when we hit mainstream adoption, no one will have to know how blockchain works.
If that was the case, we would never make it lol.
Do you know how the internet works?
I sure don't and I don't care.
All I know is I can do a lot more than I was able to do before.
It's the same with security tokens!
In the case of these security token fund products, the investors will realize they have the option to actually trade their LP interest whenever they want!
I'm talking 24/7, 365 liquIdity baby!
Yep!
No longer are investors required to wait 5-7 years before getting their money out!
Welcome to the future. 🤝
💪 Tokenise & Polymesh mesh well
Just this past week, a HUGE announcement came from the Tokenise and Polymesh teams!
Tokenise, a fully-regulated stock exchange based in Barbados, is set to become one of the few exchanges that enable security token trading!
Tokenise elected to use the purpose-built blockchain Polymesh, of course.
As I have said in the past when entities leverage a permissioned-blockchain, regulatory authorities are more likely to approve this kind of blockchain.
Why?
Enforcement organizations like the SEC always want to have some sense of control.
With public blockchains, you don't have control, you are just another user on the network.
In essence, Polymesh enables you to have more control of the network, while at the same time leveraging the benefits of blockchain efficiencies!
Mike Kessler, the CEO and Founder of Tokenise had this to say:
"As we enter the new year, we are really excited about the opportunities that will be brought to the market in 2022 and beyond. We have now put all the component pieces in place and we look forward to working with Polymath to help us secure our tokenisation strategy for the reporting, custody, and settlement of security tokens.’'
There are now several secondary trading venues where investors can trade security tokens, but Tokenise is definitely a unique one.
During our call, Mike mentioned they were going to focus on the direct-listing of alternative assets.
"Why is this unique?"
There are quadrillions of dollars worth of private and public assets around the globe that are either trading or sitting idly.
Once these assets are tokenized, they can directly-list the shares on an exchange like Tokenise to enable trading!
There are two ways to secondary liquidity: Conduct an STO or tokenize an existing asset.
Many companies elect to do an STO, but it usually takes much longer before their asset commences trading.
The issue with this is it encompasses an extensive amount of time, capital, and lock-up periods depending on the jurisdiction and rulings leveraged, with no guarantee it will even succeed.
Tokenise decided to follow the direct-listing strategy and ambitiously plans to have multiple assets trading by Q1 of 2022!
Graeme Moore, Head of Tokenization at Polymesh had this to say about Tokenise:
"It's great to see Tokenise, a highly regulated and exciting company, utilize Polymesh for their offering. Their integration with a Central Securities Depository is a crucial step in proving that security tokens are flexible enough to accommodate any regulatory requirements thrown their way."
When the assets go live on Tokenise, we will be tracking the data!
Stay tuned!
💦 What else is Drippin’
Anchorage Raises $350 Million: Digital asset custodian raises $350M lead by KKR - granting them unicorn status!
Swarm Markets inks deal with Germany's Volksbank to tokenized bonds on Polygon: Security Tokens are Coming to Polygon!
Crypto Custodian BitGo Adds AVAX Support as Institutions Eye Avalanche: Avalanche gaining ground left and right!
✍️ 📹 Content from the team
Thanks for tuning in! Keep an eye out each Monday for the next security token adventure 🧗♀️
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.
Disclosures:
• No money or other consideration is being solicited, and if sent in response, will not be accepted;
• No offer to buy the securities can be accepted and no part of the purchase price can be received until the offering statement is filed and only through the platform of an intermediary (funding portal or broker-dealer); and
• A person’s indication of interest includes no obligation or commitment of any kind