Security Tokens Daily Digest #1 (November 10, 2018)

1. BatteryStorage announces EU compliant security token offering

>> Go to BatteryStorage STO page

At a time when disappointment weighs heavily on the ICO market, projects that offer secure and lucrative investment opportunities are a true rarity. BatteryStorage aims to provide just such an opportunity to institutional, accredited and retail investors. In its first public announcement, the company has outlined its plan to launch a security token offering (STO), fully compliant with the laws and regulations governing securities in Malta and the EU.

The STO’s maximum goal for capital raised (hard cap) is set at EUR 72 million. The funds raised will be used to finance a 60 MW Li-ion energy storage solution in Glasgow, UK as well as licensing, cryptocurrency mining equipment, and other related capital expenditures and operating expenses. At present, BatteryStorage is raising capital via the private BSO security token pre-sale.



2. SEC Charges Crypto Operator over Unregistered ‘Security Tokens’

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The commission seems to be walking its talk as it has faulted Zachary Coburn, the founder of crypto token trading platform EtherDelta of operating an unregistered securities exchange. In the charge brought against Coburn on Thursday, the SEC noted that EtherDelta was serving as a marketplace that allowed buyers and sellers to trade ethereum tokens that the SEC considered to be digital asset securities.

SEC explained: “EtherDelta’s smart contract was coded to validate the order messages, confirm the terms and conditions of orders, execute paired orders, and direct the distributed ledger to be updated to reflect a trade.”



3. New ERC-1450 Standard For Digital Stock Certificates On Ethereum Announced

Equity crowdfunding platform StartEngine has just announced a new token standard on Ethereum for creating digital stock certificates. SEC-registered entities will be able to enact the new standard, thus opening up a much-needed option for compliant tokenized securities.

As per the announcement, any ERC-1450 token will require a registered transfer agent to create and process the tokenized securities. Transfers of ownership can be done directly from buyer to seller or through an SEC-registered broker-dealer. Of course, all tokenized securities under ERC-1450 will have the added benefit of being completely transparent, all easily trackable on Ethereum’s blockchain. That’s what makes the ERC-1450, and all tokenized securities, a significant game-changer for the fintech world.

StartEngine will be using the ERC-1450 standard to list tokenized stocks and equity on their crowdfunding platform. The platform will be using the standard to issue tens of thousands of tokenized securities. Currently, ERC-1450 tokens have been issued to all 3,500 StartEngine shareholders and the 165 eligible companies that use StartEngine Secure will expectedly be listed using the ERC-1450 standard.



4. AmaZix and Issuance Join Forces to Support Digital Securities and Provide a Compliant Method of Investing

AmaZix and Issuance want to give ICOs the tools and resources necessary to execute successful and compliant security offerings. The partnership will leverage Issuance’s fintech experience, complemented by AmaZix’s ICO marketing expertise.

Commenting on the partnership, Darren Marble, CEO at Issuance, said: “Smart money wants a simple process. It wants digital assets that are blockchain-based and are compliant with federal securities law. At the same time, companies also want a compliant way to raise capital.”

“We believe that our expertise allows us to fill a huge gap in STO advisory for companies, while our strategic partnership with AmaZix puts us into meaningful reach with investors who want in on the next big thing.”


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