Blockstack’s Reg A+ Token Offering

12 July 2019

Each week we share the latest news in blockchain and finance. This is newsletter #43 and covers the Reg A+ Blockstack Token Offering qualified by the SEC, custody provider Anchorage’s $40m raise, FundAdminChain’s launch, and much more.

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In our earlier issue on Euronext’s Investment in Tokeny, we reported that numerous projects are waiting for qualification from the SEC for a Reg A+ token offering. Now we know that one of these doesn’t have to wait any longer.

Blockstack is a decentralized computing network, which already raised $5m from VCs and $47m in a 2017 token sale. In the Blockstack Token Offering, it’s offering Stacks token (STX), the fuel of the network, to raise an additional $28m in cash

Some interesting points to note:

  • The raise marks the first time a Reg A+ token offering is conducted, meaning tokens (considered to be securities) are offered not solely to accredited investors, but also to retail investors. Even though the tokens do not represent equity, but so-called ‘utility tokens’.
  • While the value of the total raise is $40 million, a significant portion of new tokens will be given to its app developers, which are valued at $12m (resulting in $28m in cash).
  • The SEC gave the all-clear on Wednesday 10 July, and the sale will start today. The reasoning behind this quick follow-up is that a qualified Reg A+ offering needs to start within a few days of qualification.
  • And lastly, we’re excited to see what this means for these other projects that have been waiting for SEC qualification. Will we see a host of new Reg A+ token offerings in 2019? Or is the SEC just ‘testing the waters’?

 

QUOTE

“The marketplaces just aren’t there [yet]; The ones that are have just launched several months ago…the situation is particularly bad because we are in the early days of the market.

It’s going to take 12-18 months for this to mature and make a big impact.”

— Securitize’s Carlos Domingo on secondary markets for security tokens.

 

NEWS

🚀 Custody service provider Anchorage has raised $40m in a series B roundfrom Blockchain Capital, Visa and Andreessen Horowitz and others.

😶 Tokenization platform Polymath has announced it’s laying off 10 employees while refocusing its efforts on two projectsthe decentralized Polymath Token Studio and the recently announced security token blockchain Polymesh.

⛓️ A former R3 director has launched FundAdminChaina R3 Corda-based blockchain project for the fund management industry.

⚡ A co-founder of crypto mining company Bitmain has launched Matrixporta platform for over-the-counter digital asset trading, lending and custody.

💱 Dusk Network, as one of the few permissionless security token protocols, has listed its token on BitfinexPress release here.

🇸🇬 The Singapore Stock Exchange is backing a new trading platform for security tokens called 1X, which went live this week with an Ethereum token representing 7% of shares in Aggregate Asset Management, a Singapore fund. A similar story as last week’s Euronext’s investment in Tokeny.

⏩ Goldman Sachs is going “further than ever before” on digital assets. The quote was made in a new job listing, though the company’s CEO also recently indicated they’re following developments like tokenization and (Facebook and JPMorgan’s) stablecoins very closely.

 

LONGER READS

🔗 An overview of Security Token Blockchains, including Dusk Network, Ownera and Polymesh.
Recently I gave a talk at the Tokenized Assets event in Amsterdam. Coinciding with the release of the presentation’s recording, I’ve written up my thoughts on this topic on the Finhash Network website.

👷 On the need for interoperability in security token protocolsby a Solidity engineer.

📄 Following last week’s STO reports, here’s another one. Blockstate’s global STO studycovering data from a variety of security token offerings by 120+ issuers.

 

NEW DEALS

🎥 tZero is working with the producers of a film on videogame manufacturer Atari to issue a token, raising up to $40m for its production. Investors will receive a share of the movie’s earnings.

 

POSTSCRIPT

We’ve written and sent you this newsletter every week for the last 43 (!) weeks. But all good things must come to an end, so we’re skipping two weeks this year to allow for some holiday time.

That means that on 1 August, you’ll again receive the latest news on blockchain and finance right into your inbox.

See you in 3 weeks! 👋

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