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Goooood Morning, Rainmakers! ☀️

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

1️⃣ 📱New App for Security Tokens: WisdomTree Prime

2️⃣ 👨‍⚖️ The Ripple Case is Over… or is it?

Without further ado, it's time to…

Get Liquid 💧

A MESSAGE FROM MASTERWORKS

A million dollar Banksy got investors 32% returns?

Mm-hmm, sure. So, what’s the catch?

We know it may sound 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 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 ’08 crisis

Got your attention yet? Offerings can sell out in just minutes but What’s Drippin’ readers can skip the waitlist with this exclusive link.

“Net 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.

📱New App for Security Tokens: WisdomTree Prime

Some exciting news coming out of WisdomTree, the $94B AUM asset manager well known for its ETFs: Their own app, WisdomTree Prime is live on the App Store and Google Play!

WisdomTree Prime offers investors an easy way to invest within a blockchain-native ecosystem, right from their smartphone. The app currently offers bitcoin, ether, tokenized gold and even 9 out of WisdomTree’s 10 tokenized 1940 Act funds, including exposure to fixed income and equities!

This is an exciting development as tokenization becomes the talk of the land, both at retail and institutional levels. By creating such a user-friendly experience one can expect more people to onboard, learn about tokenization, and over time increase participation of what we all know will be the future of finance.

Something to note: These digital funds will not be trading on either decentralized or centralized exchanges.

Blockchain will record ownership but, as per US securities laws, it will not be the sole source of truth. WisdomTree will be using its transfer agent to remain compliant.

Securrency is involved in the tokenization of these funds in partnership with WisdomTree so let’s give them some credit too! As a matter of fact, the STA Success network will be doing a spotlight on Securrency on July 26th at 1pm EST.

Come learn all about them with Peter Gaffney and ask anything you’d like!

State of Security Tokens 2023 - Q2 Publication

As the STA Team finalizes the State of Security Tokens 2023 - Q2 report this week, they are finalizing sponsors for any groups interested in associating their brands with Security Token Advisors, our research, and the general tokenization and real-world asset (RWA) market.

The publication gets distributed to many of the industry’s service providers, blockchain foundations, investment banks, crypto native firms, infrastructure solutions, and buy-side organizations including asset managers, wealth managers, and family offices. It’s also been syndicated by groups like Forbes and Securities.io as shown in the sample below.

Please message Peter Gaffney here in the Success Network or email him at [email protected] to discuss.

👨‍⚖️ The Ripple Case is Over… or is it?

Huge news for the crypto community came out on Thursday. US Judge Analisa Torres of New York deemed XRP is NOT a security, quite the setback for the SEC as the industry went bonkers!

Anyone else’s phone start buzzing with crypto surge notifications? I know mine did along with others I was on a call with at the time the news came out!

However this ruling does come with some fine print.

XRP, the crypto being bought and sold on exchanges, is not a security. However the direct institutional sales are.

What does this mean?

For starters, considering retail investors didn’t know who their money was going to when bought in secondary markets, XRP doesn’t meet the Howey test, “investment of money in a common enterprise with a reasonable expectation of profits to be derived from the efforts of others”.

Let’s remember Coinbase is on the SEC’s spotlight right now for offering unregistered securities. Now that XRP isn’t one, it doesn’t help the SEC’s case. That being said, let’s also acknowledge this is one judge’s ruling and it can be appealed (which may happen).

For the time being though, we’re seeing multiple exchanges announcing they’ll be relisting XRP including Coinbase, Kraken, Crypto.com, and more!

At the same time, IF other cryptos had similar circumstances to those of Ripple, it’s possible Judge Torres’ decision could serve as precedent for them. If I were the SEC, I’d pay close attention to this.

This ruling also has implications on tokenization which our Head of Research covered in this week’s STA Insights email! Lucky for us, this week’s email is available to all here so go check that out too!

Want weekly insights from Security Token Advisors? Subscribe to the STA Success Network’s “STA Insights” plan for just $9/month and get access to events such as the one’s below!

Have any thoughts on this? Let me know on Twitter @Jason_Barraza_

💦 What else is Drippin’

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, Gabriel Sadoun of DigiShares, and Francesco Biviano of Arcton 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. Nadine’s 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.

Compliance in Security Tokens

The STA Success Network will be hosting a webinar around compliance on Thursday, July 27th at 12pm EST.

Security tokens are exactly that - securities. This comes with a variety of measures that need to be taken to remain compliant and help prevent regulators from knocking on one's door. This ranges from the issuance of the security to the platforms hosting them as evidenced by recent SEC headlines.

Matthew Unger and Adrian Alvarez both work in web3 compliance through iComply and InvestReady respectively, building infrastructure for the future of finance. Have questions? Email [email protected] 

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! 👇

This is not financial or investment advice.

📣 Advertise with us!

Do you want your company or project in front of the largest, most curated security token audience on the planet?

If interested, please reach out to [email protected] to find out a way we can collaborate together :)

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.