Recently, it was reported that a popular Colorado resort planned to sell "Aspen Coins" in a Reg D 506(c) offering on a token trading platform operating as an SEC- and FINRA-registered broker-dealer and alternative trading system (ATS). On Aug. 24, 2018, this offering launched through an international crowdfunding firm, with the hotel offering to sell $18 million in Aspen Coins. Aspen Coins represent, indirectly, one share of common stock in the resort.
Now other similar announcements have been made. Last week, U.S.-based registered broker-dealer Rialto Trading announced a partnership with Bittrex, a U.S.-based digital asset trading platform, to develop a new security token trading platform. Rialto Trading also intends to expand its services to include issuance advisory services, placement, trading and custody for security tokens. On Aug. 28, 2018, OpenFinance launched a regulated ATS for security tokens, reportedly enabling accredited investors to trade tokens issued under Reg D, S, A+ and CF exemptions. Retail investors reportedly also are permitted to trade certain digital securities, subject to a 12-month holding period. In other platform news, a public trust company regulated by the South Dakota Division of Banking has announced that it secured insurance for blockchain-based assets held on its qualified custody platform through the world's leading insurance market.
In a press release this week, the World Bank announced the results of its offering of a blockchain-operated new debt instrument or bond-i. The bond-i is reportedly the world's first bond to be created, allocated, transferred and managed over blockchain. The World Bank raised A$110 million in the offering and will pay 2.20% interest on the bonds.
Last week, the Monetary Authority of Singapore and Singapore Exchange announced a collaboration to develop Delivery versus Payment (DvP) capabilities for the settlement of tokenized digital currencies and securities across various blockchain platforms. DvP is a settlement procedure whereby cash payment and delivery of securities occur simultaneously. In another recent report, a British multinational bank and the financial arm of a German multinational manufacturing company partnered to conduct an "industry-first client pilot" for blockchain-based guarantees in trade finance, with an aim to fully digitize bank guarantee issuance from end to end using smart contracts.
For more about blockchain developments in capital markets, please read the following:
- Aspen St. Regis Owner Ditches REIT Plan, Says the Hotel Will Be Sold on Blockchain
- Crowdfunding Firm Indiegogo to Sell Real Estate-Backed Security Tokens
- Rialto Trading and Bittrex Team Up on Digital Securities Trading Platform
- OpenFinance Launches Regulated Trading Platform for Security Tokens
- World Bank Prices First Global Blockchain Bond, Raising A$100 Million
- Monetary Authority of Singapore Settlement of Tokenised Assets
- Kingdom Trust Launches Lloyd's of London-Insured Qualified Custody Platform for Digital Currency
- Standard Chartered, Siemens Partner to Put Bank Guarantees on a Blockchain
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