Tokenized Equity

C O N T E N T S:

KEY TOPICS

  • Companies would be unable to violate those regulations if their equity was tokenized, said Pompliano, because those tokens could be coded so that it would be impossible to transfer them to a non-accredited investor's account.(More...)
  • One solution would be to switch to a digital system along the lines of Bitcoin but linked to an asset. ? Equity Tokens Using legal and technical infrastructure, startups and established companies alike can legally issue a new type of asset we call tokenized equity.(More...)
  • Swarm to Launch Tokenized Equity From Coinbase, Robinhood, Ripple, Didi You are using an outdated browser.(More...)

POSSIBLY USEFUL

  • Delaware has now clarified the law to allow for the tokenization of equity, but just how such equity is represented in swarm, as in how the "physical" aspect is connected to the digital token aspect, is very unclear as far as we can discern.(More...)

RANKED SELECTED SOURCES

Tokenized Equity
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link: http://www.trustnodes.com/2018/06/13/swarm-launch-tokenized-equity-coinbase-robinhood-ripple-didi
author: trustnodes.com
description: Swarm to Launch Tokenized Equity From Coinbase, Robinhood, Ripple ...

KEY TOPICS

Companies would be unable to violate those regulations if their equity was tokenized, said Pompliano, because those tokens could be coded so that it would be impossible to transfer them to a non-accredited investor's account. [1] How exactly this works at a technical level is not fully explained in their whitepaper, but once the stocks and shares are acquired from former employees or Venture Capitalists who have invested in the company, the equity will then be tokenized. [2] Muirfield Investment Partners' TAO will lead the way into a better, tokenized private equity sphere. [3]

One solution would be to switch to a digital system along the lines of Bitcoin but linked to an asset. ? Equity Tokens Using legal and technical infrastructure, startups and established companies alike can legally issue a new type of asset we call tokenized equity. [4] They can be tokenized equity that provides holders with a share in the issuing company's assets, they can come in the form of debt securities such as a tokenized bonds or in the form of a share in a real estate development project, to name a few. [5] CRWD Network is a decentralized network protocol for issuing and managing tokenized equity offerings of SMEs, Start-ups and Real Estate Projects. [6]

Not only because they enable a comparatively low-cost way to issue securities but also because security token offerings are able to go beyond the current cryptocurrency fundraising model to allow for different types of tokenized securities such as debt instruments or dividend-paying equity tokens. [5] He told TheHill: "It's inevitable that security tokens will transform equity just as bitcoin has transformed currency because they afford the owner a direct, liquid economic interest and the expedited delivery of proceeds. Every type of ownership can be tokenized, which is a massive multi-trillion dollar addressable market." [5] Investors may leap at the chance to invest in these fintech unicorns, but the companies themselves -- unsurprisingly -- are not exactly jumping for joy at having their equity tokenized and traded on a secondary market. [7]

Swarm to Launch Tokenized Equity From Coinbase, Robinhood, Ripple, Didi You are using an outdated browser. [8] SHANGHAI, June 14, 2018 (GLOBE NEWSWIRE) -- Swarm (www.swarm.fund), the blockchain for private equity, announced today that the recently tokenized Andra Fund will be made available to its investors. [9] Tokenized securities can (in my opinion) either be offered in the form of equity tokens; stocks, or some form of debt offering that can be assimilated to a fixed income security as a bond. [10]

POSSIBLY USEFUL

Delaware has now clarified the law to allow for the tokenization of equity, but just how such equity is represented in swarm, as in how the "physical" aspect is connected to the digital token aspect, is very unclear as far as we can discern. [2] Despite all its potential benefits--tracking share ownership, lower fees, faster equity transactions--the infrastructure to actually support a market to buy and sell equity tokens following the initial sale is limited. [1] This exchange of equity distinguishes the sale from that of an ICO. In ICO public sales, investors do not receive a share of the company in exchange for their investment. [11] Sourced through partners who acquire equity from former employees, these secondaries provide liquidity to exiting employees and now, through Swarm, open a much wider door for individuals to participate in the investment ecosystem. [12] Staying true to our "No Middlemen? mantra, Swarm never holds the equity in these companies, but rather provides the picks and shovels to build these valuable access points for the community," they say. [2] Swarm will launch tokens representing private equity starting with Robinhood, Ripple, and Didi, creating a secondary market for some of the biggest companies involved with crypto. [12] "By offering a Ripple token representing equity in Ripple the company, Swarm Fund offers an answer to what some say is a limitation of Ripple's XRP token as an investment. [12] Anexio is hoping to raise $40 million by offering those Ethereum-based tokens, representing equity, to accredited investors. [1]

These tokens represent fractional ownership shares in a real estate private equity investment vehicle managed by Muirfield. [3] Private equity firm Muirfield Investment Partners is poised to change private equity by introducing tokenization solutions with a rumored TAO later in 2018. [3] Private equity firms raise cash from a small group of wealthy investors and use the money to invest in assets (such as companies or real estate). [3] With a legal and regulatory framework compatible with institutional investors, automation to remove middle men, and prioritizing access for all, Swarm can streamline and help double the Private Equity industry from $2.5 trillion to $5T+ in the next five years. [12] Swarm makes traditionally exclusive investment opportunities, such as private equity and hedge funds, inclusive for the Swarm by pooling together smaller investments into larger, institutional-sized blocks. [12]

"Our goal is to democratize investing, and introducing tokens that represent equity is a major step forward in this mission," said Philipp Pieper, CEO and Co-Founder of Swarm. [12] Investors looking for a more holistic piece of Ripple's value may look to the Ripple Equity Token as a solution," commented Timo Lehes, Co-founder and Chief Investment Officer. [12]

Polymath enables companies to take control of their equity issuance through programmable code. [13] Each individual equity offering will have it's own unique security token created using the SRC20 security token protocol. [12] "Now, any Swarm investor can hold equity in some of today's most prominent tech startups." [12] SHANGHAI JUNE 13, 2018 Swarm (www.swarm.fund), the blockchain for private equity, today announced the launch of tokens representing equity in individual tech companies, allowing Swarm investors to purchase security tokens representing fractional shares in private companies. [12] Private equity can be a reliable wealth-generation tool, particularly for investors who are interested in becoming involved in new industries but lack the expertise to master an entirely new and complicated market. [3] The traditional private equity model eschews the burdens of stockholder governance by working with only a small group of accredited investors, which means that initial buy-ins to the fund are often prohibitively expensive for many would-be contributors. [3] The firm's founder, Tom Zaccagnino, started his professional life in tech disruption before moving into private equity real estate and ultimately founding Muirfield. [3] Muirfield realized that tokenization represented an ideal tool to disrupt and improve how private equity works. [3] Tokenization solves two of the most prominent drawbacks of the private equity world. [3]

XRP is a top cryptocurrency, behind only Bitcoin and Ethereum in market cap, but it does not represent equity in Ripple or reflect the value of Ripple payment protocol. [12]

Tokenized Asset Offerings, or TAOs, sell tokens that represent the fractional ownership of assets, such as real estate, diamonds, etc. Speculation on such tokens' future values should be much less volatile than ICO tokens because the value of the tokens are backed by real assets and not the promise of creating value through a to-be-built product and company. [3] Assets including artwork, wine, and real estate can be tokenized. [1]

Anexio plans to issue the tokenized shares with the aim of raising $40 million from the asset sale. [11] Once all assets are tokenized, then we believe the entire financial system will be more efficient and compliant. [11]

Despite the potential benefits of the system, there are a few problems that need to be sorted out the primary one being that the necessary infrastructure to trade tokenized securities is presently non-existent. [11]

The Documo Token (DCMO) is anticipated to be an ERC-20 compliant Security Token which will be listed on future exchanges that support the trading of tokenized securities. [14] Security tokens, also known as tokenized securities, fall under securities laws in most jurisdictions. [5]

Pompliano says the acquisition of Keystone Capital is "another step in the process for Coinbase to be able to support tokenized securities trading. [15]

PoC of the investor's cold wallet for the storage of tokenized assets. [16] It has also shown that almost anything can be placed on the blockchain while everything of value can be tokenized; material items including homes, but also immaterial things such as knowledge, genetic data, and ideas. [17]

Digital tokens issued on the Ethereum blockchain will represent actual equity in the company. [14] "By offering a Ripple token equity in Ripple the company, Swarm Fund offers an answer to what some say is a limitation of Ripple's XRP token as an investment. [7] LAS VEGAS, May 17, 2018 /PRNewswire/ -- Documo, a technology company focused on building next-generation document workflow solutions, has announced they will be selling company ownership stakes in the form of an Equity Token. [14] While Swarm's intent is to allow a wider community of investors to own equity in these companies, this does not mean just about anybody can buy these equity tokens. [18] By tokenizing equity (or debt), entrepreneurs can now sell their tokens to investors around the world, widening both their reach and target audience. [15] Documo, Inc. launches one of the first ever Equity Token Offerings (ETO). [14]

Cryptocurrency startup Swarm has announced a new security token product that will allow accredited investors to purchase and trade equity in privately-owned tech companies like Coinbase, Robinhood, Ripple, and Didi. [7] The product, announced by Swarm on Wednesday, allows investors to pool their assets to obtain private equity in some of the hottest names in fintech and blockchain development, even though none of them have held an initial public offering (IPO) to list their shares on a securities exchange. [7] Swarm Fund, a blockchain for private equities, announced the launch of tokens, representing equity in certain companies. [18]

Established companies are already beginning to tokenize equity in their business, and startups now have a new vehicle that may provide faster and easier access to capital. [15] Security tokens, like equity in a business, can be sold to U.S. and international investors, opening up an entirely new avenue to capital raising. [15] Through this process, the firm said that it expects to tokenize about $15 to $25 million worth of equity per company on an annual basis, providing investors -- accredited ones, anyway -- with the ability to obtain deeper exposure to the cryptocurrency industry without having to fork over VC-level money. [7] Swarm has said that they aim to tokenize $5-25 million worth of equity, per company, per year. [18]

The equity is not obtained directly from the companies themselves, but are obtained using secondary channels. [18] Development and integration of algorithms for decentralized asset management that will determine the initial rules and framework for managers working with equity assets. [16] Now, any Swarm investor can hold equity in some of today's most prominent tech startups." [18]

Swarm is reported to have said that equity in these companies is sourced from "approved secondary market transactions to acquire vested employee shares, or from venture capitalists who have directly acquired equity from these companies", referring to Swarm's partners who have acquired equity from these companies directly. [18] "Our goal is to democratize investing, and introducing tokens that represent equity is a major step forward in this mission," said Philipp Pieper, CEO and co-Founder of Swarm. [7] Investors looking for a more holistic piece of Ripple's value may look to the Ripple Equity Token as a solution." [18] Ripple responded similarly, responding through a spokesperson that, "We have never spoken to Swarm, don?t have a record of them purchasing Ripple equity and would not have approved a purchase for this purpose." [7]

Blockchain startup Swarm announced Wednesday that it was launching new "equity tokens" that would represent equity in notable blockchain startups like Coinbase and Ripple - but those companies have pushed back swiftly against the idea. [19] Tokenization is the process that transforms rights to an asset (such as a share in the equity of a company) into a token on a blockchain. [20] In the same way in which securitization converts assets with low liquidity into more liquid security instruments that can be traded both on the trade markets and over-the-counter, equity-linked tokens typically can be traded more easily than traditional equity in companies, which may be tied up for years. [20] With the beginning of its private sale for its PEC security token, The Elephant grants investors access to equity opportunities previously inaccessible shares of target companies. [21] The Elephant's goal and vision is to tokenize the equity rights of promising private, pre-IPO companies, increasing liquidity, as well as appealing to crypto holders looking for a conservative investment option. [21]

Below is a transcript of their conversation, which includes potential changes to the protocol to make issuing equity easier, why market cap is the wrong comparison to company value, what Stellar is focused on, and what gives lumens value. [22] Chernick is also the founder of NextGen Crowdfunding, LLC, the leading company that helps people explore equity crowdfunding and ICOInvestor.tv, a platform helping people to explore the emerging field of the crypto economy with a focus on Initial Coin Offerings (ICOs). [23]

In a statement, a spokesperson for Swarm told CoinDesk that the "tokens are company equity either from vested options or from venture capitalists," explaining that the equity comes from "approved secondary market transactions to acquire vested employee shares, or from venture capitalists who have directly acquired equity from these companies." [19] Overall it's a positive development, particularly for the security-based tokens that represent equity in a company or shares of real estate. [22] The "blockchain for private equity" company published a blog post describing its new token project, with chief executive Philipp Pieper explaining in a statement that the tokens "democratize investing" and allow "any Swarm investor hold equity in some of today's most prominent tech startups." [19]

Rob is managing partner of Edgewater Equity, an early stage venture capital fund based in New York City. [24] There might be some changes to the protocol to make issuing equity better. [22]

"We have never spoken to Swarm, don't have a record of them purchasing Ripple equity and would not have approved a purchase for this purpose," the rep said. [19]

We have extensive experience in the tokenization of assets and facilitating the provision of legal advice on the creation of equity-linked securities tokens, in particular for tokenized venture capital funds. [20] NEW YORK, NY / ACCESSWIRE / May 16, 2018 / CityBlock Capital is announcing NYCQ, a $20 million tokenized venture fund for investment into top New York City startups. [24] The Financial Incentive Network is a tokenized loyalty program represented by FIN Points used to support and incentivize participation in the global network that will transform capital markets, not only by Finhaven itself, but with a multitude of institutional, individual, corporate and decentralized partners. [25] The Apis Token is the first tokenized hedge fund strategy, focused on an algorithmic, signal based volatility trading strategy, with a proven track record. [26]

Built on blockchain technology, we?re making it easier, less costly, and more secure to raise capital and issue regulatory compliant tokenized securities. [25]

RANKED SELECTED SOURCES(26 source documents arranged by frequency of occurrence in the above report)

1. (11) Swarm to launch new tokens representing equity in Coinbase, Robinhood, Ripple, and Didi - Swarm

2. (10) Tokenization May Distrupt Private Equity, and Thats a Good Thing - Cryptovest

3. (7) Ripple, Didi, and Robinhood shares tokenized with Swarn Funds new launch - AMBCrypto

4. (7) Swarm is Tokenizing Coinbase, Ripple Shares- Whether They Like it or Not

5. (4) Morgan Creek Blockchain Capital Tokenizes Anexio Company Stock | Fortune

6. (4) Tokenization of Shares - VC Firm Converts Company Stock to Cryptocurrency Token - Bitcoinist.com

7. (4) Documo, Inc. Announces Equity Token Offering (ETO)

8. (4) Coinbase Just Made an Interesting Acquisition--and Its Implications for Entrepreneurs are Incredible | Inc.com

9. (4) Coinbase, Ripple Blast Company Creating Tokens in Their Name - CoinDesk

10. (4) How to Choose the Right Security Tokens to Invest In

11. (3) Swarm to Launch Tokenized Equity From Coinbase, Robinhood, Ripple, Didi

12. (3) Venture Capital and Tokenization of Shares and Assets - Singapore ICO Law Firm Singapore ICO Lawyer ICO Nominee Director Singapore Hong Kong ICO Law Firm Hong Kong ICO Lawyer

13. (3) CoinDesk's Editor-in-Chief Pete Rizzo Interviews Jed McCaleb - Lumenauts

14. (2) Nousplatform | Decentralized blockchain-managed investment funds

15. (2) The Elephant Introduces Innovative Tokenized Secondary Market Platform | NewsBTC

16. (2) CityBlock Capital Announces NYCQ, a Tokenized Venture Fund for Investment Into NYC Startups

17. (2) Finhaven - Product Hunt

18. (1) Tokenized Security Offerings, TSOs, May Replace ICOs As a New Means of Fundraising for Blockchain Ventures | [blokt] - Blockchain, Bitcoin & Cryptocurrency News

19. (1) Polymath

20. (1) Now that everything can be tokenized, banks are taking notice

21. (1) Security Token Summit to Feature Former Nasdaq Vice Chairman David Weild, Coinlist Co-Founder Andy Bromberg & Dozens of Other Industry Experts

22. (1) Apis Token FAQ - Apis Capital Management

23. (1) Decentralized Exchange + Tokenization of Real Assets & Equity Tokens | Meetup

24. (1) CRWD Network (CRWT) - ICO Details | CryptoSlate

25. (1) Swarm to Launch Tokenized Equity From Coinbase, Robinhood, Ripple, Didi

26. (1) Swarm Fund Partners With Andra Capital Late-Stage, Technology Gr - 100.7 KFM-BFM - San Diego Radio - kfmbfm.com

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