This is the 8th post for the weekly series on the state of securities with a focus on fintech, Bitcoin, blockchains & distributed ledgers.
Here are some of the key developments, stories & updates from the digital securities industry over the past week.
“World Chess to Host Hybrid IPO through Securitize & Algorand”
World Chess is looking to host a “hybrid IPO” via a sale and distribution of security tokens before a later IPO. As stated in the article, “In the upcoming STO, it is expected that World Chess will be selling roughly 5% of their company represented by security tokens. Investors will retain the ability to convert these tokens into traditional shares once an IPO takes place.” This is an interesting development as it allows the early investors to gain access at a “discount” versus the eventual IPO price. This “hybrid IPO” will utilize both traditional fundraising methods as well as blockchain technology. Full article on Securities.io on this development by World Chess.
“Former UBS Banker Launches Digital Securities Platform Tokenyz”
Claude Waelchli, left UBS back in July and has now started his own company called Tokenyz, which will issue digital securities on a blockchain. He had this to say about the development, “What we are currently looking into is creating a global alliance of the top experts in the space to provide an open forum for dialogue where you can have conversations and eventually work towards a common standard.” This is yet another example of a company moving towards tokenization of digital securities, which makes the transfer of these securities much more efficient by increased liquidity and faster settlement times. Yahoo Finance article about this latest development from Claude Waelchli and his company Tokenyz.
“Swiss Government Moves to Remove Legal Barriers for Blockchain Development”
Switzerland is already known as a very crypto and blockchain technology friendly area, but now they are trying to advance innovation by removing some legal barriers that hold up development on blockchain and distributed ledger technology. Currently, there are over 400 companies with a presence in Zug, Switzerland, so this is a country that understands the capabilities of the technology and is trying to help foster innovation. “The Federal Council opened up a number of proposed amendments to existing laws for consultation in March. Following around 80 responses, the amendments have been further revised and, now, adopted by the council.” It’ll be interesting to monitor this over the next couple of months and see if any other nations take note of the innovative steps Switzerland is making in the industry. Yahoo Finance article on this development from the Swiss federal government in the area of blockchain and distributed ledger technology.
That’s all for this week, check back in next week to learn all about what’s happening in the rapidly evolving digital securities industry! Feel free to leave any comments below & if you’re interested in following this weekly roundup be sure to click on “Notify me of new posts by email” underneath the comments box below to receive an alert for each new post.