Date(s) - 07/02/2019
6:00 pm - 8:00 pm
AC Hotel Rooftop
This event will be all about institutional capital getting into crypto, security tokens, trends, noteworthy security token offerings, and bites from media houses.
The Security Token Meetup is held to drive forward the conversation around technical, legal & regulatory opportunities and challenges associated with issuing, lifecycle events and the trading of securities on public ledgers. Building standards in this space provide the bedrock needed to ramp up adoption and establish regulatory compliance in this massive and emerging use-case for blockchain based public ledgers.
Are Security Tokens the Future?
Security tokens are now being touted as the future of ownership and the democratization of alternative investment, with the potential to digitize or “tokenize” all types of assets such as debt and equity in private companies, or even physical property like real estate and art.
But the tokenization process of existing assets raises new questions and technical challenges. Critical features such as proof of ownership of the underlying assets and restricted transfers in a global environment are still quite experimental.
In theory, thanks to on-chain securities lifecycles and secure wallets, clearing houses and central securities depositories may become obsolete. However, securities laws worldwide are complex and to some extent unfit for blockchain technology because they’ve been designed around a heavily intermediated space.
Thus, Security Tokens Offerings is a two-fold challenge:
Issuers will look for jurisdictions that recognize tokenized securities, but…
Trading platforms and service providers can only build up the necessary infrastructure where the proper legal framework exists.
In all likelihood, due to the wide spectrum of use cases; zero tolerance for shaky legal grounds; and a limited pool of addressable investors; we won’t see mega STO rounds in the coming months. Instead, in our minds, smaller private placements backed by thorough disclosures will become the norm.
By borrowing best practices from the private markets and relying on widely recognized fair valuation methodologies, the up-and-coming class of fully compliant security tokens might finally set reasonable expectations for digital assets.