Zurich Based Sygnum Becomes First Bank to Tokenize its Shares on Ethereum

Sygnum, a Zurich-based digital currency bank, has tokenized its shares according to a recent announcement on the company’s blog post. The bank touts itself as the first of its kind to tokenize shares on a distributed ledger, hence forging a path for the future of public offerings. These shares have been tokenized on the Ethereum blockchain via Sygnum’s tokenization platform dubbed ‘Desygnate.’

This means that Sygnum’s shares can now be accounted for via a blockchain ecosystem, including the associated legal rights and obligations. The blog reads,

“Put simply; this means that digital representations of Sygnum shares, together with associated legal rights and obligations, have been created and are immutably accounted for on a distributed ledger.”

With tokenization in the picture, Sygnum’s share registry will be updated automatically any time there is a capital injection transfer. According to Sygnum, this approach minimizes the counter-party risk attributed to settlements, given the bank will be using distributed ledger tech to manage both primary and secondary market transactions.

This initiative will also eliminate the administrative burden of written share transfer requests embedded in the current market structures. Sygnum Bank co-founder, Mathias Imbach, commented on the underlying value proposition in share tokenization,

“This is an important milestone towards fulfilling our mission of creating more direct and efficient access to ownership and value. This includes new engagement models with our clients and partners, and ultimately providing liquidity for our trusted shareholders.”

In the future, Sygnum plans to list its shares in Switzerland and Singapore via SIX Digital exchange and SBI digital Asset Holdings for the latter market. As reported by BEG, SIX recently completed a CBDC pilot test in collaboration with the Bank of International Settlements (BIS) and the Swiss National Bank (SNB).

It comes as no surprise that Sygnum is already eyeing a public offering in this marketplace. SIX Digital Exchange Head, Tim Grant, said that they are looking forward to the partnership,

“We are excited to partner with Sygnum on this journey and hope to facilitate a successful dual listing across Switzerland and Singapore in the future.”

Read Original/a>
Author: Edwin Munyui

FTX Launches Trading of Tokenized Shares in Partnership with German CM Equity AG

Cryptocurrency derivatives exchange FTX will now allow its users to trade not just crypto but tokenized shares of big giants and some of the world’s most popular companies like Amazon, Apple, Netflix, Facebook, and Tesla.

These tokenized equity offerings are backed by the shares of actual stocks, custodied by CM-Equity, and can be redeemed for the underlying shares.

For now, trading is available on more than 12 equity and cryptocurrency pairs like BTC and stablecoins.

Because the tokens represent a fraction of one share, traders will be able to trade even half of a share if they want. Erik Voorhees, CEO of crypto exchange ShapeShift said,

“American companies cannot offer or compete with this. I’m glad intl companies can still innovate, and that crypto breaks down all borders over time.”

There have been some concerns in the crypto community about FTX breaking US regulations by offering trading opportunities for stock CFDs.

But for starters, traders in the US and other restricted jurisdictions won’t be eligible to trade these new offerings.

Also, for this, FTX has partnered with Swiss-based Digital Assets AG and CM Equity AG, a financial firm fully regulated in Germany, to offer fractional stocks.

“CFDs aren’t illegal – and offering them for US-traded companies on the NYSE and NASDAQ is allowed – you just need to follow the regulations and not try and skirt the rules just because you are on a blockchain,” said Adam Cochran, a partner at Cinneamhain Ventures.

In response to this news, the price of FTT jumped to $3.91. But it is to be expected, as FTX CEO Sam Bankman Fried said, “Everything on FTX involves FTT.”

Read Original/a>
Author: AnTy

Interlay to Bring Tokenized Bitcoin to Polkadot Via PolkaBTC in 2021

A tokenized BTC coming to Polkadot as it is integrated with blockchain through a cross-chain bridge to Bitcoin that will go live in the Q1 of 2021. It would enable users to transact BTC as PolkaBTC on various platforms falling under the umbrella of decentralized finance (DeFi).

Interlay is behind the development of PolkaBTC, backed by Parity Technologies, and funded by the Web3 Foundation. Integration aims to accelerate Polkadot’s young DeFi ecosystem.

In the case of transferring a tokenized BTC (as like BitGo’s WBTC) out of its native blockchain, a copy of the underlying token is declared, where real BTC gets locked. And these copies of BTC are burned whenever a user shifts back to the Bitcoin blockchain.

On the contrary, PolkaBTC would get labeled in a 1:1 ratio and supported in many decentralized exchanges, lending protocols, and stablecoins.

Moreover, Interlay revealed that the permissionless and trustless nature of the ecosystem makes users have more control over their money as its working infrastructure doesn’t include any central or monitoring sector.

BTC-Parachain, since its initiation, is run by multiple nodes around the world, including community members and various companies, as a decentralized platform.

To use PolkaBTC at decentralized apps, you need to have some DOTs (Polkadot’s native token) used as collateral to mint the PolkaBTC. Three things you must have to mint are BTC wallet, Polkadot’s Wallet, and some DOTs. Interlay stated:

“In the case that a vault misbehaves, you will be reimbursed from the Vault’s collateral and will make a very profitable trade between BTC and DOT. At launch, collateral will be put down in DOT. In the mid/long run, this may be extended to stablecoins or token-sets to improve stability.”

If one wants to redeem the PolkaBTCs equivalent to a whole bitcoin, he needs to burn the tokens on the BTC-Parachain first. Interlay added,

“PolkaBTC can remain on Polkadot indefinitely (no expiry date) and can be redeemed for BTC at any point in time.”

The first Alpha testnet will be held next month for PolkaBTC, and Beta tesnet is expected in January 2021, and the mainnet launch is scheduled in the first quarter of 2021.

Also, the projects based on Polkadot would be integrated with PolkaBTC. Some of them include Moonbeam, Equilibrium, and Polkaswap.

Read Original/a>
Author: Hank Klinger

Top Onecoin Ponzi Scheme Recruiters Launch A Clone Called Circle Of Finance (Invicta)

  • OneCoin token Ponzi scam affiliates are in the pipeline to form a new tokenized project, Circle of Finance (Invicta).
  • Two of the top ranking officials in the Onecoin scam, Veselina Valkova and Habib Zahid, are associated with the scam.

In late November, details emerged of the OneCoin Ponzi scheme spinoff, Circle of Finance (Invicta) which sounded a whole lot more like the its predecessor. According to BehindMLM, the company is incorporated under the name TradeInvicta, an Estonian based shell company set up by Heaven Invest and exists in name only, no transactions made through it.

According to general company information from the Estonian authorities, TradeInvicta is registered under Veselina Valkova and Habib Zahid, two of the many Onecoin scammers, who ran away with over $1 billion USD in users funds. Habib is believed to have been a top recruiter in Onecoin scam with Veselina playing a more key role as one of the inner circle members of the founder of Onecoin, Dr. Ruja Ignatova, who has since vanished.

At the launch of the Circle of Finance (Invicta), many of those who followed were convinced the project was a resurrection of the Onecoin scam. However, through their marketing and advertisements, the new entity is branding itself as a completely different platform despite offering the same corny promises Onecoin offered investors.

The new platform promises to offer users a network including forex, network marketing, e-commerce, payment processing and exchange & remittances. Only exchanges were missing from Onecoin’s initial plan.

This is a pretty basic MLM scam that is mainly targeting the Onecoin customers who were scammed earlier and the newbies in the field with an option to cash out on an exchange sound interesting. While the site is yet to be up and running, it is important for cryptocurrency investors to be on the lookout. We will follow up any details arising from the Ponzi as it arises.

Read Original/a>
Author: Lujan Odera

Swiss-Based Overture To Become First Authorized IPO On Ethereum Blockchain

As firm in Switzerland, is now permitted to integrate a blockchain IPO that offers tokenized shares. In an announcement made Wednesday, Andriotto Financial Services says that Overture, the firm for which it offers financial advice, is going to provide something different than what other security offerings do:

“The company has approved the first Swiss articles of incorporation that directly states the digital nature of the shares (tokens) and the use of the blockchain as the technology to keep the shareholders registry […] transfer of the company ownership can be achieved only with a transfer of the tokens on the blockchain and only the ownership of the token can give the status of shareholder.”

Overture Will Offer Class-A Shares on the Ethereum Blockchain

Overture will provide class-A shares with Zug-based EURO DAXX (which stands for the European Digital Assets Exchange) smart contracts on the Ethereum blockchain. By deploying blockchain technology this way, the efficiency in the major capital markets is boosted, claims Overture, in the sense that banks, central depository systems, broker dealers, as well as other financial intermediaries no longer need to be involved.

The native blockchain approach to the securities offerings is expected to be warmly welcomed by the most important new platforms in Switzerland, for example by the upcoming Swiss Digital Exchange from SIX Swiss Exchange.

The IPO Model to Become More Prevalent?

There are many voices saying the original IPO model, no matter if implemented on the blockchain or not, may become more and more prevalent in the crypto and blockchain space this year. This month at Davos, the CEO of Ripple, Brad Garlinghouse, said he expects more crypto companies to want to launch IPOs, so Ripple itself may be interested in a public flotation. Until now, the crypto industry had to focus solely on ICO’s, which are the alternative model for issuance, especially for new firms that don’t want to deal with the regulatory requirements of creating a traditional IPO.

Read Original/a>
Author: Oana Ularu

Brooklyn Nets Star Spencer Dinwiddie To Tokenize His NBA Contract On Monday

It looks like Brooklyn Nets’ guard Spencer Dinwiddie’s contract will be tokenized after all, even if the NBA pushed back the player’s plan to come up with a tokenization platform especially developed for entertainers.

The Athletic reported Dinwiddie is going to issue shares from his contract starting on January 13. The decision comes a few months after his plan to create a tokenization platform that issues debt instruments according to future earnings for entertainers, was rejected by the NBA.

Dinwiddie Announced the Tokenization Last Year

In 2019, Dinwiddie announced he wants to tokenize his $34.5 million contract of 3 years in order to raise the sum of $13.5 million in year one. The objective was to raise an upfront lump sum of his contract’s value to give token holders payouts throughout the entire season.

Dinwiddie’s Plan Barred

In September 2019, it was said by the basketball league that Dinwiddie’s tokenization plan is barred, as the NBA players’ collective bargaining agreement doesn’t allow it to take effect. Forbes reported the contention point was the eventuality of Dinwiddie executing an option in year 3 of the contract, if he promised investors major dividends for signing a contract that pays more. Dinwiddie said this clause being removed and a flat bond being offered instead would help him go on with his plan, meaning accredited investors are going to be offered the option to buy tokens for a $150,000 minimum buy-in fee, which will make his contract more valuable to begin with.

Paxos to Provide Payout and Escrow Services for Dinwiddie

Dinwiddie decided to go with Paxos Trust Company for the escrow and payout services, with the PAX stablecoin to be used. Even though Dinwiddie’s spokespeople, Paxos or the NBA hasn’t made any comments on the matter, Dinwiddie tweeted on Friday that the launch of the Spencer Dinwiddie bond will take place on January 13. As reported by Athletic, the NBA is looking over his plan, so Dinwiddie may not actually be given the green light for going live on Monday, as he wants to.

Read Original/a>
Author: Oana Ularu

Tokenized Securities Can Be Settled on tZERO’s Public Blockchain, Following Patent Win

Tokenized-Securities-Can-Be-Settled-on-tZEROs-Public-Blockchain-Following-Patent-Win
  • tZERO can now settle transactions involving tokenized securities on a public blockchain ledger.
  • The tech platform is a subsidiary of Overstock.

Overstock’s tZERO platform makes it possible to participate in security token trading, and they’ve been making progress in their presence in the cryptocurrency industry lately. According to The Block, the subsidiary has just been granted a new patent that allows tokenized securities to be settled on the public blockchain directly.

tZERO announced the news on Tuesday, saying that the new technology will record trade data, along with the on-chain settlement data. The tech, which is being called Time Ordered Merkle Epoch (TOME), will post these details to the public blockchain ledgers. The use of TOME will also create a record of transactions that is fully immutable and auditable.

CEO Saum Noursalehi stated,

“It can be used in our suite of products, as well as licensed to companies across various industries that are seeking to maintain a tamper-proof and auditable record of time-series-based data.” Noursalehi added that the announcement shows the company’s “technological leadership in blockchain innovation.”

This is not the first patent that tZERO has gotten this year. Earlier in 2019, the platform secured a patent to create a “Crypto Integration Platform,” which makes it possible to merge cryptocurrencies with the legacy trading systems.

tZERO was founded in 2014, aiming to use blockchain technology as a way to change up Wall Street and the traditional financial market.

[Author Alert] The author’s opinions above are solely based on their own self-conducted research. Assume any and all authors are using, holding, trading and/or buying cryptoassets mentioned as a portion of his or her financial portfolio. Use information at your own risk, do you own research, never invest more than you are willing to lose.

Read Original/a>
Author: Hank Klinger