💶 Liechtenstein's LCX to Launch Tokenized Euro Bond

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Gooood morning, Rainmakers! ☀️

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

1️⃣  💶 Liechtenstein's LCX to Launch Tokenized Euro Bond

2️⃣  🧑‍⚖️ South Korea's Commission on Web3

Without further ado, it's time to…

Get liquid💧

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💶 Liechtenstein's LCX to Launch Tokenized Euro Bond

The Financial Market Authority (FMA) Liechtenstein just approved LCX Earn to launch their tokenized product, a 10M Euro bond (EURt7), which is to yield a fixed-rate of 7% for investors in the European Economic Area (EEA).

Wait what's the EEA?

This means that not only will the asset be approved for investment in Liechtenstein, but also 29 other European countries. Approval was granted on February 1, 2023 and the offering will be open starting March 1, 2023 for retail investors.

Here are the terms for EURt7 Tokenized Bond according to the LCX website:

• Issuer: LCX AG, Liechtenstein

• Issuance Amount: 10 Million EUR

• Coupon: 7% per annum

• ISIN: LI1164320387

• Denomination: EUR 1,000. The minimum consideration is EUR 1,000.

• 1 EURt7 = 1,000 EUR, Purchase only in wholes, no fractional.

• Maturity / Term: 7 Years max. Quarterly termination possible.

• Governing Law: Liechtenstein

• Blockchain: Ethereum public blockchain

Although the main documents (prospectus, registration form, and final terms) are in German and English, LCX has gone above and beyond by translating the prospectus for all participating countries’ investors to be able to understand it including Greek, Icelandic, French, and Slovak to name a few. This is a great display of taking into consideration the investor experience and part of the investor onboarding process!

I personally really like the cross-jurisdictional collaboration because it opens the world to more opportunities and investors such as ourselves have a wider breadth of options to invest in. Just a couple weeks back I covered another tokenized euro bond from SIX Digital Exchange (SDX) which is redeemable for euros using their euroSIC and SDX-CSD integration.

These different features keep tokenized bonds unique and can have an impact on investors’ decision-making process. STM of course will be tracking as many as possible just for you!

As per usual, this is not financial or legal advice, do your own research and consult your lawyers, financial advisors, and/or CPAs before making any investment decisions.

🧑‍⚖️ South Korea's Commission on Web3

Security tokens are viewed in different lights between regulators in various countries around the world. In South Korea, the Financial Services Commission (FSC) has recently adopted security tokens into their regulatory framework as digital assets are increasingly considered by issuers and investors worldwide.

Guidelines are being made for the distribution of tokenized securities as it relates to regulating platforms enabling them. Like multiple jurisdictions have done, the FSC Chairman has expressed interest in creating a regulatory sandbox to test tokenized asset issuances in South Korea and work with institutions to streamline what the operation may look like.

It sounds like a common theme between regulators is that the act of tokenizing itself is not subject to regulation but rather it applies to the underlying security represented by the token. This may include any filings, platforms used and licenses needed based on their role, and reporting, and other considerations related to that asset.

The specific changes to the current regulatory environment in South Korea aren’t disclosed yet, they are expected to be announced sometime in February 2023. However, according to Korea Bizwire, the FSC will also be amending the Electronic Securities Laws for security tokens to be considered equivalent to physical and electronic securities, with all related rights intact. 

This makes sense as tokenized securities are just that: securities. These securities will now be enhanced with liquidity, streamlined back office operations, and other features. One way to look at this is to compare it to when stocks moved from paper shares to electronic versions – all of a sudden people were able to trade via the internet, in-person brokers and phone calls became less necessary, and the capital markets have evolved since then.

Tokenization is another level above that and should be embraced as it simply brings more efficiencies and capabilities. 

💦 What else is Drippin’

Assurely Webinar: Register for STA's upcoming webinar showcasing Assurely and how they adapt insurance to address the concerns and challenges hindering safe growth and widespread adoption of the security token industry.

 Assurely's CEO, David Carpentier will be covering: 

• The "Why" behind Assurely

• The Benefits Assurely Provides Issuers and Investors

• Assurely's TigerMark and D&O Program

Because there's only a limited amount of seats left for the webinar we ask you RSVP before they fill up! This will be on Wednesday February 15th, 2023 at 6pm EST

Welcome back to The State of Security Tokens!  

This year's edition is all about the most significant moves in the institutional adoption of tokenized assets, and let me tell you, it's MASSIVE. We've got all the heavy hitters you'd expect, like KKR and JPMorgan, but also some exciting new players like AllianceBernstein, Figure & Provenance, and Regulated Liability Network (RLN).  

Trust us. You won't want to miss this deep dive into the world of institutional security tokens. So sit back, relax, and get ready to be wowed by all the action in The State of Security Tokens 2023 - Institutional Edition.👇  

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.

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