🤝 Security Token Prime Mid-Week Insights: 5/23/2024

Exclusive Intelligence for Security Token Prime Members

Summary and Key Takeaways

1. REtokens Debuts $30M Real Estate Tokenization on Polymesh

New on the scene, we saw REtokens make its first debut at TokenizeThis a few weeks ago where Tyler Vinson took the stage on the Real Estate panel. Pronounced however you like, REtokens is now officially going live with a variety of new projects aimed at accredited investors who want exposure to real estate. The release states that there will be an apartment building, a townhouse project, and a multi-family fund in this initial batch of $30M USD of tokenizations.

2. FIT21 Makes Its Way to Senate After Overwhelming House Vote to Approve New US Crypto Regulation Bill

For the first time since… ever? We finally have some kind of progress in the US towards much needed clarity for the crypto industry. FIT21 (which is authored by the same individual who introduced crowdfunding and Reg CF and A via the JOBS Act) has a massive impact on RWAs too. The bill introduces ICAs or Investment Contract Assets that define investment contracts that use a blockchain. THIS IS HUGE. Why? Well because the bill allows anyone to invest into these products up to 10% income or net worth while being capped at $75M. This opens up a whole new opportunity for RWAs in the US. The battle isn’t over and with crypto being a hot voter topic, we’ll see if the Senate or the President puts a stop to it. Certainly SEC Commissioner Gensler wants it put to bed

3. Prometheum Doubles Down on Its Licensing and Regulatory Ambiguity with Launch of Custody Service

A fresh wave of scrutiny has once again come at Prometheum, a Special Purpose Broker Dealer that is claiming to be the only regulated platform in town for crypto securities they define as Ethereum and other cryptocurrencies. That’s obviously got the crypto industry up in arms as it threatens the free flowing markets we see today. In order to have a full end-to-end ecosystem, Prometheum has come true on their promise to deliver a custody service for Ethereum which they announced last week where they once again labeled Ethereum as a security. Seems they may be hinging everything on this strategy but we do know they also plan to expand into RWAs too.

4. PwC Selects Tokenization Firms Brickken, Hedgeguard, Vertalo, and, Zoniqx for Scale Accelerator Program

A big congratulations to Brickken, Hedgeguard, Vertalo, and Zoniqx (previously Tassets) for being selected to participate in its Scale program for digital assets. Of over 700 applicants, these 4 firms out of a total of 11 made the cut. The program is designed to pair large companies with cutting edge startups, something that will help these firms anchor big clients given PwC’s reach and size. This also reveals that PwC is conscious of the rise of tokenization and digital assets in the finance sector.

Notable Mid-Week Market Headlines

Security Token Prime Member Spotlight

STP member Jonathan Chambless, CEO of LV8R Labs recently announced a partnership with Inveniam to revolutionize the construction industry using blockchain technology. Specifically, they're working on Building Information Management (BIM) for more efficient communication and management processes during the design and construction stages of building projects.

Did you miss the webinar? Watch the replay here:

Security Token Prime is Made Possible Thanks to Our Enterprise Partners

The STA team is excited to announce a couple of new advisory clients to the field in the coming weeks. After Security Token Market’s TokenizeThis Conference in Miami, FL, numerous blockchain foundations and protocols have been vying for certain deals. As the next wave of on-chain asset classes seeks to move up the risk curve, we’re positioned to act as a supplier of quality and vetted leads across a range of focuses, jurisdictions, and goals with tokenization.

Peter Gaffney, Head of Research, Security Token Advisors

Security Token Advisors Client Highlights:

STA has elected to spotlight a couple of our advisory & consulting clients here.

Blue Water FinTech - STA is working with Blue Water, an SEC-registered investment adviser and FinTech platform dedicated to Mortgage Servicing Rights (MSRs) and loan servicing with 500+ originators onboarded. STA has been evaluating the tokenization ecosystem on behalf of Blue Water, who is seeking to distribute MSR and associated cash flows to investors as compliant tokens. Blue Water is one of the (if not the) leaders in MSR secondary trades by volume which could contribute to a very notable listing on tokenized secondary marketplaces when the time is right.

Arctic Digital Mining - STA is working with Arctic Digital Mining (ADM) to develop a tokenization platform geared towards Alaskan gold miners under the mission of unlocking the value of in-ground gold deposits via digital securities, and thus bringing utility to unmined gold and precious metals. Targeting a range up to 100 million gold ounces, ADM seeks to bridge the gap between in-ground gold valuations and mined & listed gold (i.e. ETFs and gold-backed stablecoins) through the GiG token. Eventually, we may see price convergence as miners, investors, and users along the value-chain elect to tap into this market directly at the source through the miners on Arctic Digital Mining’s platform.

For Consulting Inquiries or Client Details: please email [email protected]

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