Author: kiman

European digital assets technology provider DigiShares has announced the release of their new white-label multi-project platform. The platform is a major upgrade from the previous more limited single-project platform. The new platform can handle the issuance, purchase and ongoing token holder management processes for multiple projects as once, and can also be configured for single-project situations.

Security Token Offerings (STOs) are essentially a blockchain-powered capital raise where tokens representing securities are issued to investors. The STO exploits the power of the blockchain to enable fast and efficient purchasing and trading, access to a global infrastructure with investors, custodians, and exchanges, and increased security and transparency on securities processing. The STO market is growing extremely fast with massive inflow of VC capital, massive interest from incumbents, and with an expected CAGR of 59%.

DigiShares is a provider of white-label technology for the STO market, for companies wanting to conduct their own STO, and for companies that want to offer STO services to their own clients. Using the new multi-STO platform, companies can create investment portals under their own brand, for specific application areas, such as startup financing, real estate projects, renewables projects, etc.

The DigiShares platform offers functions for investor verification and approval (through KYC and AML), token purchase and settlement, e-signatures, always 100% updated token holder “cap tables”, voting, distribution of dividends, company news distribution, freezing and renewal of lost tokens, etc. The DigiShares platform is blockchain agnostic and works out of the box with Ethereum- and Stellar-based digital asset protocols. Others can be supported quite quickly based on customer request. The platform is also “security” agnostic and can support shares, bonds, loans, etc. and any type of security that can be tokenized, as well as utility tokens with security properties.

The platform is customizable to work in any combination of jurisdiction and investor domicile. The KYC/AML process will be designed from the start to support the relevant combinations, supporting retail, experienced/accredited/sophisticated, and institutional investors. The platform has a content management module where the administrator can upload content in order to design the layout for different STO user-facing pages. The platform supports payment with both crypto and fiat, through integration with Transfer wise and future PSD2 banking integration.

Many issuers are interested in dual capital raises where they target both crypto & blockchain investors, as well as traditional non-blockchain investors. The DigiShares platform supports this scenario as both tokenized and non-tokenized investors can participate in an STO. A tokenized investor is an investor who receives a token to represent the ownership of the security. A non-tokenized investor is an investor that is fully managed off-chain, meaning his/her investor relationship is managed as digitally as is legally possible — and otherwise paper-based and manually outside the platform. This ensures that no issuer will have to bet their fortunes on a successful STO but can hedge their bets and approach also traditional investors.

Finally, the platform provides a mini-exchange functionality with OTC-like trading capabilities. This allows issuers to offer their investors a limited trading capability and limited liquidity within their own network and community. The mini-exchange also allows for new investors to be invited in and white-listed such that they may purchase tokens from existing investors. This can support scenarios where existing investors want to exit and offer their tokens for sale.

About DigiShares

DigiShares provides a platform for issuance and post-issuance management of tokenized securities. It helps with the initial design of the security token such that it fulfills the requirements of the issuer jurisdiction, using the most popular security token protocols and helping ensure that the token may later be traded on forthcoming security token exchanges.

DigiShares is your trusted partner to ensure that your digital shares will be compliant and liquid.

DigiShares is currently conducting its own STO, learn more here.

Originally posted here by Antoine Tardif:

You were previously the COO of Venturefusion – a crypto-security ecosystem for startup creation and growth. How did you transition to becoming CEO of DigiShares?
The vision of VentureFusion is to create a decentralized incubator platform for startups. It will work as a collaboration and bootstrapping platform where founders can tokenize the equity in their startups (even if no legal unit exists) and use the equity tokens as a means of payment for anyone that contributes to the startup. Founders can then make a plan for how much equity they want to spend to get various parts of their startup developed, making individual equity token allocation plans for short-term contributors such as freelancers and long-term contributors, such as co-founders and permanent team members, under vesting conditions. VentureFusion is still an ongoing active project but it primarily managed by my co-founder Yuriy Zubarovskiy these days.

VentureFusion prompted us to look at how to tokenize equity and in early 2018 this was a relatively new concept. We went to some of the first conferences in Europe on the concept and decided to create a new project, GoSecurity, which would focus on tokenization of securities. This project later re-branded to DigiShares and I became the CEO. It is now my primary focus to manage and develop DigiShares.

Could you elaborate on the services that DigiShares offers?
DigiShares is one of the leading providers of white-label infrastructure for securities tokenization issuance and management in Europe. Our first product was a single-project platform for issuance and longer-term management of tokenized securities, and we are just releasing a major upgrade that can handle multiple projects with a lot more functionality. We are one of few companies in Europe – and the only one in the Nordics that can provide an operational platform of this type.

Our platform can handle the complete workflow of an STO (security token offering), from investor registration, verification (KYC/AML), approval, to the actual purchase of tokens with fiat or crypto, signing of contracts (e-signatures), token holder cap table overview, communication with token holders, voting (shareholders’ meetings), payment of dividends, etc.

For tokenized equity, we offer a unique function where we allow a proportion of shareholders to be non-tokenized, i.e., as digitized as possible but not tokenized, so with no tokens issued. This is by customer request as some of our clients have voiced concerns that they would like to approach both crypto and non-crypto investors – and non-crypto investors may prefer a non-tokenized registration. Another unique function that we are working on is a mini-exchange, an internal OTC-like trading platform for the token holders within a single project.

Overall, we provide solutions to enable anyone to conduct their own STO or offer a number of simultaneous STOs. We primarily work in white label partnerships where clients offer the solution under their own brand name.

In addition to providing the software, we also provide access to the security token ecosystem. We have a big network of partners for legal, investments, custody, KYC/AML, etc. Some of these are integrated into the platform.

Digishares is one of the few companies in the industry that is headquartered in Denmark. Do Danish securities regulations support the digitization of shares?
While we are based in Denmark and concerned about local serities regulations, it is important to state upfront that we are jurisdiction agnostic and can operate from any jurisdiction. Indeed we have ongoing projects in both Europe and the US.

Locally, we are working with a Danish lawyer and the Danish regulators to establish whether shares can be represented as tokens. So far, our lawyer has established that tokenized shares are supported by Danish legislation but some details need confirmation from the regulator and the Ministry of Industry, Business and Financial Affairs. DigiShares has applied to participate in the sandbox of the Danish regulator to further analyze how tokenized securities can co-exist with Danish law.

Some countries do not support the tokenization of shares since they require either paper-based stock certificates or notarized trading. Fortunately the Danish securities legislation supports digitization of shares and has neither of those requirements.

The ability to tokenize shares (and other types of securities) is of course important for DigiShares and for Danish companies, but it will have importance outside of Denmark as well, since securities that are issued in Denmark can be passported to any EU member state. We believe Denmark could be a good STO destination for the above reasons – but also because we believe other typical STO costs can be significantly reduced here (incorporation, legal costs, etc.). As an added benefit, Denmark is a highly trusted financial jurisdiction with one of the lowest levels of corruption in the world.

How is the security token ecosystem and community in Denmark?
It is as of yet quite small but we are doing our best to develop it with regular conferences in Copenhagen. We’re organizing an annual conference focused on tokenized securities (Fintech Disruption Summit) and regular events on different types of tokenization, next time on September 12 with a focus on real estate tokenization.

We are presently the only Nordic company with an STO issuance platform and we are also the first to conduct an STO. However, we expect others to join us soon.

You’re currently in the process of raising funds for your own STO. How much are you raising, and what benefits will investors receive?
We are raising just below EUR 1 M. This relatively low limit was set to enable us to approach retail investors and market the STO publicly across Europe. In addition, we’ve filed a form D in the US so we can approach US accredited investors. European regulations is more flexible than the US and enables us to make a more “democratic” STO since we are allowed to target retail investors in almost all European countries.

We have designed our STO so investors receive common stock in the company with exactly the same governance rights as founders, similar to a standard IPO. Many STOs design “handicapped” tokens with quite limited governance rights for investors but we didn’t want to do that. In general, we believe it will be a problem for the STO industry if issuers keep creating tokens with very limited investor governance rights.

What are the plans for the raised funds?
The raised funds will be used to speed up our development & marketing efforts. In addition, there are certain licenses we would like to obtain in order to extend the scope of our business. In general, we are seeing more leads & opportunities right now than we have the resources to exploit.

You are arranging an event on tokenized real estate in Copenhagen on September 12. Do you see real estate as being the most promising asset class to be tokenized?
Yes, if you look at statistics and speak to industry experts, there is consensus that real estate is the biggest homogeneous chunk of the STO market right now. So currently, we are directing our marketing and development efforts in this direction. Our real estate tokenization event will be attended by around 100 real estate professionals from the Nordics. 90% of them are non-blockchain people that we hope to motivate and inspire to adopt blockchain. In general, we don’t go to many blockchain industry events but rather spend our efforts on the traditional financial & real estate industries.

We hope to announce a real estate STO quite soon, and we are also involved in a really exciting project about creating Eurasian security token exchanges.

What other asset classes will you be focusing on?
Through partners we are also looking at debt and bonds, but we are primarily focused on equity at this stage. The platform can handle any type of security.

Where do you see the industry being in 5 years and the role of DigiShares in this industry?
We currently see two major trends; one with startups attempting to create a new parallel financial infrastructure and another with incumbents adopting blockchain and approaching the new opportunities in their own speed. These two trends will eventually merge and a new financial infrastructure will emerge where some old financial institutions will still exist and some of the new players will be established as leaders. We will see just one or two main security token protocol standards. The consumer (investors) are the real winners with much decreased fees for trading, decreased interest rates for debt, increased interest rates for deposits, faster and more efficient financial operations, etc., etc.

Published in Danish on TechSavvy August 7, 2019: https://techsavvy.media/danske-digishares-vil-goere-startup-investeringer-paa-blockchain-mainstream/

Digital shares issued through blockchain technology should be accessible to everyone. This is what Danish startup DigiShares, which has developed the technology, makes possible – they themselves raising a million euros through this new form of investment.

A new way to raise capital using blockchain technology is emerging, the so-called Security Token Offerings (STOs).

The Danish company DigiShares, as the first company in the Nordics, uses this method to raise one million euros, which is also a test of their product: a platform that can handle STOs.

“Our first product is a platform that allows you to issue shares on the blockchain. Both to raise capital for startups in some form of equity crowdfunding, but also to be able to manage a large number of shareholders in an easy way for other types of investment. And we even use the platform for our capital raise as a test case for it”, says Claus Skaaning, CEO of DigiShares.

DigiShares has developed the platform that allows digital shares to be issued on a blockchain in the form of tokens. Like shares, the issued tokens that investors buy in DigiShares give full voting rights and dividends on the profits.

With the crypto shares, it becomes easier and faster to raise capital for various purposes, allowing at the same time smaller investors to join. Thus, the Danish company hopes that its solution can make the STO model reach the mainstream market.

The next step for crypto investments
The crypto scene has been through great development in recent years. The first model for cryptocurrency investments in crypto startups was ‘Initial Coin Offerings’ (ICOs), which have been used to raise billions of dollars. That was before the bubble burst in early 2018.

The model was often fueled by speculation as it did not provide investors with the ownership of the companies they invested in. As a next step, the crypto world has invented the STO model, which is more reminiscent of traditional stocks. Namely, the tokens issued through an STO model provide investors with real value in the form of ownership or part of the profits of the company in which they invested.

And while STOs are still in their early days, the founder of DigiShares has great confidence that they can fundamentally change how investments are being made.

“When shares are digitized and handled on the blockchain, you get several of benefits. It is far cheaper to raise capital this way because it can be more automated with software”, says Claus Skaaning.

Usually, business angels need to arm themselves with patience for several years before earning returns on the startup investments they have made. Conversely, the shares of an STO can be listed on a European STO exchange, so that ownership in a startup can be sold relatively soon after the acquisition.

Turning the investment model mainstream
The platform developed by DigiShares for raising capital through the STO model is not just for startups. It can also be used by investment funds, real estate funds, and mature companies.

“Tokens can represent shares, bonds, and other types of specially-designed securities with profit sharing or voting rights, and so on. We help design these tokens along with the related smart contracts, and the platform handles the registration and approval of investors, the distribution and electronic signature of ownership agreements and subscription forms, as well as the payment of dividends, voting, and other administrative tasks”, explains Claus Skaaning.

Although DigiShares is a relatively young crypto company, it has already received attention from industries that did not have anything to do with crypto before.

“We have already been in dialogue with a Spanish consulting firm looking to use our platform to raise capital – and they have nothing to do with the blockchain world. The type of customer we see is typically late-stage – i.e. large companies or startups that are more mature”, he says.

DigiShares hopes the model will be available to a wider range of investors.

Even though STOs are still growing, they have already captured the attention of several companies around the world, especially after the World Economic Forum has estimated that securities amounting $12 – $14 trillion will move to the blockchain by 2025.

About DigiShares
DigiShares provides a platform for issuance and post-issuance management of tokenized securities. It helps with the initial design of the security token such that it fulfills the requirements of the issuer jurisdiction, using the most popular security token protocols and helping ensure that the token may later be traded on forthcoming security token exchanges.

DigiShares is currently conducting its own STO, learn more here https://digishares.wodwes.com/sto

DigiShares, the white-label platform solution for tokenizing securities, has been recently featured in Andrew Roman’s “Masters of Blockchain, Digital Assets, and the New Capital Markets”, one of the most comprehensive and up-to-date books on blockchain and tokenization. This came about, as the company’s CEO, Claus Skaaning, was invited to contribute a chapter about the development of the STO market and its benefits.

Skaaning has also been interviewed by the Crypto twins, whose popular Youtube channel, ValueTokenized, provides educational content to help businesses learn about tokenization. Our CEO has talked about the challenges and benefits of carrying out an STO and how DigiShares can contribute to the new financial infrastructure provided by the blockchain technology. It all comes into the context of the company’s ongoing STO, which is one of the first in Europe to also target retail investors.

“Masters of Blockchain” and DigiShares’ role in the new capital markets

“Masters of Blockchain” is a book written by Andrew Romans, author, CEO, and partner at several venture capital firms, which explores the entire blockchain and tokenization domain, from the rise of cryptocurrencies and token economies to what that means for startups, corporations, or investors. Claus Skaaning, CEO of DigiShares, has been invited to contribute a chapter in this book, where he delves into the development and benefits of security tokens.

“Almost all companies in the STO industry quote the World Economic Forum figure of 10% of the global GDP moving to the blockchain by 2028 ($7.8 trillion), implying that a huge new market is developing. […] We are seeing two trends right now. The first is a massive increase in the number of market entrants providing products and services for the STO industry. The second is a massive growth in blockchain technology being adopted by established financial companies.”

“One major benefit of STOs is clearly the future tradability of the security. […] Forthcoming security token exchanges will make it much easier and less expensive to have your tokenized securities traded. This increased liquidity will surely attract many investors to STOs.”

Skaaning also mentioned how the Danish issuance platform DigiShares is part of this revolution: “In my company, we are focused on one application of blockchain technology – how to represent stocks on the blockchain. Even though it was written long before blockchain, the Danish securities regulation actually supports this quite well. Stock certificates may be digitized. The entire process around share registers, voting, shareholder meetings, etc. may be digitized. […] In practice we are storing an encrypted named stock certificate within each token. Each token represents one share in the company. Tokens will have smart contracts that check against a whitelist of investors to determine whether a given transfer to a new owner is compliant. Such securities can be “passported” into other EU member states and possibly even outside the EU, making Denmark a solid destination for STOs.”

Buy the book here.

Cryptotwins interview DigiShares CEO Claus Skaaning

In their latest video, the two popular Cryptotwins, Xenia and Masha Vyazemskaya, have featured DigiShares. Their Youtube channel, ValueTokenized, is dedicated to getting tokenization industry insights from interviews with professionals in the field, the most recent one being Claus Skaaning. Our CEO talked about the challenges and benefits of carrying out a security token offering in the context of DigiShares’ ongoing STO, which is one of the first in Europe to also target retail investors, and about the company’s goals and plans for the future, as well as its role in the new financial infrastructure. Watch the video here.

DigiShares is partnering with other companies in the industry in order to provide customers with better and more complete solutions. One of these projects, Altvesto, is a legal framework where investors can have shares in both tokenized and non-tokenized versions. Skaaning: “This legal framework is expected to be a step to attract institutional investors to come more easily into the domain of security tokens. We need to build some bridges to the traditional financial world in order to make it easy for them to accept the risk of adopting a new technology”.
DigiShares has also recently entered a partnership with the Finnish company, Empirica, focused on building the AI-based investor community platform, Binvestor, that will be a network for investors and companies seeking funding. DigiShares and Empirica will collaborate on building up the community and DigiShares will be the platform of choice for future STOs launched through Binvestor.

About DigiShares

DigiShares provides a platform for issuance and post-issuance management of tokenized securities. It helps with the initial design of the security token such that it fulfills the requirements of the issuer jurisdiction, using the most popular security token protocols and helping ensure that the token may later be traded on forthcoming security token exchanges. DigiShares is your trusted partner to ensure that your digital shares will be compliant and liquid.

DigiShares is currently conducting its own STO, learn more here.

DigiShares has now completed the first round of their capital raise, a private placement round. The financing round was carried out as an STO (Security Token Offering) through DigiShares’ own issuance and shareholder management platform. An STO is a type of capital raise where shares are issued and offered for sale, as tokens on the blockchain rather than traditional shares.

With the first funding round completed, DigiShares will now launch the second phase of their capital raise, a public offering of approximately EUR 1 M, a small capital raise under EU regulations. Equity in the form of security tokens will be offered for sale.

Investors will receive shares in DigiShares with full voting rights, full rights for dividends, similar to a normal share. It is expected that the shares will be listed on a European security token exchange within 1 year after the sale to provide liquidity for investors. Also, investors will receive early access to participate in forthcoming capital raises on the DigiShares platform.

DigiShares is among the first in Europe to provide a software platform that can be used for investment funds, real estate funds, and later stage startups to raise funding by issuing shares as tokens on the blockchain and offering them for sale. These tokens represent securities and are fully regulated under the issuer’s jurisdiction. Tokens can represent equity, bonds or other types of customized securities with revenue-sharing rights, voting rights, etc. DigiShares helps design the tokens and smart contracts to correctly represent these securities and the platform then manages the entire process related to the registration and verification of investors, distribution and signing of subscriptions forms and shareholder agreements, continuously updated shareholder registers, as well as the distribution of dividends, voting, etc.

DigiShares partners with international exchanges for the listing and trading of security tokens as well as investor networks to help ensure that issuers can sell their tokens and provide investors with future liquidity. DigiShares also partners with legal advisors across many jurisdictions to provide assistance with setting up SPVs, drafting private placement memorandums, prospectus documents, etc.

Compared to traditional forms of capital raises such as private placements, public offerings, and IPOs, an STO is less expensive and more “liquid” since it is easier to reach global investors. The biggest benefit by far is the fact that security tokens are tradeable and will soon be traded on special exchanges in Europe. This means that angel investors putting money in startups will no longer be stuck for 5-8 years but may immediately trade their shares with others. In a similar manner, investors into real estate projects and investment funds may achieve liquidity much sooner than before. For this reason, investors are expected to prefer STOs over traditional forms of capital raise which will in return make it easier for companies to raise capital with an STO – and potentially allow for increased valuations.

The platform is provided under the DigiShares brand, but also increasingly as a white-label solution for companies that want to operate their own issuance platform. This could be STO consultants, legal and financial advisors, equity crowdfunding platforms, etc.

Claus Skaaning, CEO of DigiShares: “The swift completion of our private placement rounds seems to indicate a significant investor interest in the new world of tokenized securities. DigiShares is working with many partners to help bring the ecosystem into place such that companies can raise capital easier and with lower cost – and investors can enjoy much increased liquidity on their investments.”

The STO market is viewed as the “new ICO” and foreseen to become a very large market in the future, for instance by the World Economic Forum which has predicted that securities amounting to 10% of the GDP will be tokenized by 2025 ($12-14 trillion).

DigiShares has added three high-level advisors to its advisory board. These advisors will help develop DigiShares’ strategy towards the future of the tokenized securities industry. DigiShares provides a white-label platform for issuance and post-issuance management of tokenized securities. As such, an STO (Security Token Offering) can be managed with the DigiShares platform.

The three new advisors are:

Andrew Romans: CEO and General Partner of 7BC.VC, a venture capital and hedge fund firm exclusively focused on investing in and supporting blockchain, fintech and AI companies. Andrew is also cofounder and general partner of Rubicon Venture Capital, a very active Silicon Valley and New York City venture capital fund. Andrew advises large corporations and governments on venture capital, cryptocurrency and blockchain policies. Andrew is the author of two books about venture capital and one about blockchain and ICOs.
Andrew will advise DigiShares on the tokenization of VC funds and VC portfolio companies.

Alex Mashinsky: Alex is the CEO and founder of Celsius Network, a blockchain-based borrowing and lending firm. He is a founder of seven startups, raising over $1 billion and exiting over $3 billion. He has been a featured speaker at over 120 conferences and TV interviews, and the author of over 32 patents relating to exchanges, VOIP, messaging and communication. Alex is considered to be one the pioneers of VOIP, with foundational patents dating back to 1994.
Alex will advise on the standardization and regulation of tokenized real estate such that it may be used as collateral for loans.

Hazem Danny Al Nakib: Hazem is a financial and regulatory expert, a partner af 7BC, and Managing Partner at Sentinel Capital Group where he works with corporates, governments and startups leveraging digital emerging technologies. Hazem sits on multiple advisory boards of companies leveraging blockchain.
Hazem will advise on regulation and institutional tokenization projects in Europe.

All three advisors will use their network to actively help DigiShares gain market progress.

DigiShares is among the first in Europe to provide a software platform that can be used for investment funds, real estate funds, and later stage startups to raise funding by issuing shares as tokens on the blockchain and offering them for sale. These tokens represent securities and are fully regulated under the issuer’s jurisdiction. Tokens can represent equity, bonds or other types of customized securities with revenue-sharing rights, voting rights, etc. DigiShares helps design the tokens and smart contracts to correctly represent these securities and the platform then manages the entire process related to the registration and verification of investors, distribution and signing of subscriptions forms and shareholder agreements, continuously updated shareholder registers, as well as the distribution of dividends, voting, etc.

DigiShares partners with international exchanges for the listing and trading of security tokens as well as investor networks to help ensure that issuers can sell their tokens and provide investors with future liquidity. DigiShares also partners with legal advisors across many jurisdictions to provide assistance with setting up SPVs, drafting private placement memorandums, prospectus documents, etc.

Compared to traditional forms of capital raises such as private placements, public offerings, and IPOs, an STO is less expensive and more “liquid” since it is easier to reach global investors. The biggest benefit by far is the fact that security tokens are tradeable and will soon be traded on special exchanges in Europe. This means that angel investors putting money in startups will no longer be stuck for 5-8 years but may immediately trade their shares with others. In a similar manner, investors into real estate projects and investment funds may achieve liquidity much sooner than before. For this reason, investors are expected to prefer STOs over traditional forms of capital raise which will in return make it easier for companies to raise capital with an STO – and potentially allow for increased valuations.

The platform is provided under the DigiShares brand, but also increasingly as a white-label solution for companies that want to operate their own issuance platform. This could be STO consultants, legal and financial advisors, equity crowdfunding platforms, etc.

Claus Skaaning, CEO of DigiShares: “The addition of these three advisors to our advisory board is a significant step forward for DigiShares. We expect that it will give us new opportunities for us and a better ability to devise our forward-looking strategy.”

Andrew Romans, CEO and General Partner of 7BC: “I look forward to advise DigiShares on blockchain and VC matters. I view DigiShares as one of the potential future leaders in tokenization of securities and see several synergies with my other activities within blockchain. Claus is also the City Managing Director for the 7BC roadshow event in Copenhagen where blockchain, fintech and AI startups pitch and meet local investors.”

The STO market is viewed as the “new ICO” and foreseen to become a very large market in the future, for instance by the World Economic Forum which has predicted that securities amounting to 10% of the GDP will be tokenized by 2025 ($12-14 trillion).

Contact: info@digishares.io
Visit our website here.