The general hype circa 2018 proclaimed security tokens as crypto’s killer app. After Bitcoin fell from its $20,000 peak in December 2017, some of the more revolutionary promises of cryptocurrencies had lost their luster — especially after the subsequent collapse of the altcoin market and the mayhem of initial coin offerings. Security token offerings, or STOs, on the other hand, were billed as a more manageable, if still extreme, way of upgrading the dusty old financial systems that back equity trading. A revolution from within finance. Two years later, and that revolution in stocks and bonds has yet to happen …

Thomas Lambert, Daniel Liebau, and Peter Roosenboom from the Rotterdam School of Management suggest that Security Token Offerings are better at financing start-ups than Initial Coin Offerings. Their research was published on July 14 via the University of Oxford Business Law blog. The research paper pointed out that although ICOs and STOs are both issued on distributed ledgers, the idea behind an ICO is “value creation for a community. Utility tokens in ICOs can only grant holders with consumptive rights on services or products and can not be seen as a “financing mechanism”. However, STOs can. Researchers explained that: “Tokens …

The ICO boom of 2017 failed thousands of investors worldwide, but it has also demonstrated how technology can improve the way companies raise capital. The obvious problem with the crypto market was the lack of regulation that has resulted in leaving investors unprotected. Seeking for an instrument that will combine both, the concept of a security token offering was introduced to the market just around the time when initial coin offerings were waving goodbye to investors. The hybrid of the ICO paradigm mixed with traditional financial instruments and proper regulation still seems like a perfect blend. But STOs aren’t even …

Every Friday, Law Decoded delivers analysis on the week’s critical stories in the realms of policy, regulation and law. Editor’s note Policy changes slowly. Crypto wants to move fast. Sometimes fairly, sometimes not, the crypto industry often portrays traditional financial regulators as calcified relics unprepared to deal with the coming new world. To be fair, everyone seems to acknowledge that markets and trading systems need comprehensive upgrades, but national and international regulators are accountable to a wider range of concerns than any specific industry. The crypto industry sometimes takes that as a personal slight, waiting for some sudden burst of …

Monaco is one of the most exceptional countries on the planet. Its unique mix of scenery and history creates a blend that attracts tourists from all over the world. Anyone who has ever visited falls swiftly in love with its charm. Alongside its reputation for class, architecture and an outstanding grand prix circuit, Monaco has always seen itself as a “niche” financial-sector pioneer. Many people don’t realize that Monaco prides itself on its willingness to think “outside of the box” with respect to financial laws. This thinking shows a commitment to keep the country competitive on the international financial stage, …

Maerki Baumann, an unlisted family-owned bank in Switzerland, is expanding its cryptocurrency services by introducing crypto custody and trading. Following regulatory approval from the Swiss Financial Market Advisory Authority, or FINMA, Maerki Baumann will be offering its clients the trading and custody of crypto starting from June 2020. Five crypto assets will be available at the launch Announcing the news on May 29, the Zurich-based private bank said that the launch of new crypto features comes in line with Maerki Baumann’s crypto strategy initiated in early 2019. As part of the strategy, Maerki Baumann has been offering business accounts for …

Adtech firm tribeOS launched shares in its company as tokenized securities via GSX Group’s GRID platform. According to an announcement shared with Cointelegraph on May 27, the shares were already created using GSX Group’s STACS proprietary blockchain network. Per the announcement, STACS is designed to bring more efficiency to the legacy capital markets. GSX Group’s CEO, Nick Cowan, highlighted that tribeOS is the first company to utilize the firm’s GRID security tokenization platform and welcomed other companies that wish to “accelerate the adoption of blockchain within the capital markets.” He also explained what the firm is trying to achieve: “Our …

Banco BTG Pactual is issuing its security tokens representing investment in real estate on the Tezos (XTZ) blockchain. Previously, the bank had issued its ReitBZ tokens on the Ethereum blockchain, raising $10 million in Ether (ETH) and Gemini Dollars (GUSD). Which blockchain will prevail in the future? Andre Portilho, head of digital assets at BTG Pactual, told Cointelegraph that $5 million worth of ReitBZ will be switched to Tezos, including the $2.5 million new raise that was conducted in fiat. The reason behind this diversification is that the bank wants to have its options open, as there is no way …

German security token offering (STO) platform Black Manta Capital Partners partnered with local digital asset custody firm Finoa to develop institutional security token custody. According to an announcement shared with Cointelegraph on May 4, the cooperation aims to develop a regulated security token custody solution explicitly aimed at institutional investors, high net worth individuals and corporations. Black Manta and Finoa will first collaborate on securing the tokens of the Berlin STO that has tokenized $12 million worth of real estate announced last month. Per the announcement, Finoa is a Berlin-based digital asset custodian that holds a crypto custody license issued …

Ethereum-powered digital art platform ArtID held a security token offering to fund the further development of its marketplace. According to an announcement on April 29, ArtID is seeking five million euros (nearly $5.5 million) in the offering and reached the soft cap set at 580,000 euros within one week. Investors holding the platform’s security tokens will have access to a percentage of the company’s earnings. The offering aims to raise one million euros in a public offering and four million euros in private. An active digital artwork platform ArtID reportedly already hosts over 1,000 artworks, and has supported the purchase …

The Japan Security Token Offering Association (JSTOA) has just released self-regulatory guidelines on how to separate customer assets and electronic record transfer rights. Available on the JSTOA website on April 20, the association attributes the guidelines to the revisions of the country’s Financial Instruments and Exchange Act (FIEA), passed by the Japanese House of Representatives and set to be enforced starting May 1. At a meeting including employees and the Board of Directors, the association laid out the rules for electronic record transfer rights and management of customer assets, among others. The JSTOA will check the management of separately held …

Infinite Fleet, a space adventure game, is partnering with blockchain marketplace STOKR to launch a security token offering (STO). In an April 20 blog written by Infinite Fleet, the gaming company announced it would use the tokens issued by Luxembourg-based STOKR to raise funds for its development: “We are making the foray into capital markets and we believe this will offer our supporters the opportunity to own a piece of equity in Infinite Fleet itself… our team has a wealth of experience across both the gaming and crypto industries, and we have always been strong proponents of a new digital …