Today global financial watchdog keeps boiling over any transactions that somehow involve digitally issued securities mainly because until today it still lacks a consistent regulatory framework that would prevent fraud and malice. Therefore investors who chose cryptos as their preferable type of assets are forced to step down from a major market segment.
However, the minds of blockchain developers are getting only witter, as it encounters nagging restrictions and bans. It was a matter of time when someone of crypto-league will come up a bright initiative to bypass regulatory bigotry.
SEFtoken together with a platform for tokenized assets Securitize has devised a brand-new investment instrument that will open a gateway for blockchain-friendy investors.
Previously Coinspeaker has already highlighted a successful fundraising campaign held by Securitize. It was mention that a list of the platform’s investors included very prominent industry figures such as Coinbase Ventures and Ripple’s Xpring Fund.
As a part of their collaboration with SEFtoken, compliant digital security with “covered warrant” structure was born. Owing to such innovative technique, vast swaths of asset owners around the world will be able to tokenize their business issuing compliant US digital securities.
Digital Covered Warrant
The nature of a newly formed tokenized asset can be compared to an investment option that gives the holder the right to buy or sell the underlying security at a certain price, up until a predetermined date.
The official statement posted on the SEFtoken website says that the covered warrant provides a holder with the right to convert the warrant into equity shares via compliant digital security offering for the underlying asset, which is a licensed and regulated Financial Market Infrastructure.
Further, it unveils that the world-first covered warrant security token will be sold via an offering on the Securitize platform and will be supported on the Ethereum blockchain.
For investors who are particularly worried about U.S. regulatory compliance, SEFtoken holds a portion of pleasant news as well. The SEC compliant concurrent Regulations D and Regulation S capital raising was launched via Securitize’s end-to-end digital security issuance platform and Digital Securities protocol.
Speaking about SEFtoken’s mission Brian Price, Director of SEFtoken, Inc. noted:
“Through our SEFtoken structure, we are committed to providing investors with what they are demanding, namely transparent and compliant ownership of a credible asset. ”
U.S. Warrants to Back Australian Securities
As soon as an upcoming Digital Security Offering (DSO) will be drawn to a close, users will be able to convert purchased tokens into equity at the famous Aussie exchange, Mercari.
The current laws in Australia do not allow companies to issue digital shares. Nevertheless, the tokenization of covered warrants is a workaround to the current compliance concerns regarding STOs.
The sale of tokenized warrants would allow for the issuance and sale of digital securities in jurisdictions where it would presently not be possible: such as, for example, issuing securities in the United States backed by shares in an Australian corporation.