Farmers in Argentina are using tokenization solutions; Switzerland is dedicated to fostering security token growth; Valkyrie files for a Bitcoin ETF
For the week ending January 31st
Hi all!
This week, we cover the upcoming regulatory developments aimed at facilitating the security token sector’s growth in Switzerland, a pioneering and hopefully successful move by Valkyrie for a Bitcoin ETF, farmers in Argentina and their foray into tokenization, plus more highlights of the week!
Let’s dive in!
1. Forthcoming regulatory developments out of Switzerland
In its most recent step to provide regulatory clarity to the fintech industry and facilitate its growth, Switzerland has slated for February of this year a new legal framework.
That is, this framework will introduce a new license type for security token exchanges, clear up the regulatory landscape for custodians, and introduce new laws that allow for the “creation and transaction of digital uncertificated securities in a DLT ecosystem without legal uncertainties”. For more information on these new developments, the source article on this matter goes into detail. (Lexology)
1. Valkyrie files for a Bitcoin ETF
Valkyrie digital assets has filed with the US SEC for a Bitcoin exchange-traded-fund (ETF). Taking into account the broader context of how the US regulatory environment is interacting with fintech and digital assets specifically, this move could be read as Valkyrie’s belief that US authorities are finally ready to give the green light to a Bitcoin ETF.
This comes as the US sees its new administration taking the helm, with new appointments such as Gary Gensler- Gensler is taking over the role of SEC Chairman- who has a background as a crypto-advocate and educator. (Coindesk)
2. tZERO partners with Prime Trust
tZERO has recently announced its partnership with infrastructure solution company Prime Trust. This partnership will encompass “the custody of digital assets, including securities and cryptocurrencies, by users directly with Prime Trust, and enables trading of such digital asset securities on the tZERO ATS, tZERO’s broker-dealer subsidiary”. (tZERO via Businesswire)
3. Farmers in Argentina using tokenized solutions
Due to recent woes of inflation in Argentina, farmers are looking for a way to mitigate the resultant troubles their businesses are experiencing. Enter tokenization, which allows “farmers to hedge their risks with financial titles accepted by investors both within and outside Argentina.”
What this does is provide farmers with capital channels that they may not otherwise have access to, and companies like CoreLedger have plans to avail a peer-to-peer marketplace for farmers in Argentina to “[create] further monetization channels for the emerging agro-based tokenization market.” (BTCManager)
1. Arca closes a very successful Series A funding round
Digital asset management firm, Arca, just closed its Series A funding round to the tune of $10million. The lead investor for this round was RRE ventures, and comes amidst increased investor interest toward crypto asset management and digital asset management ventures.
As for Arca, the round will help them achieve their goal of creating “a robust infrastructure base while maintaining strict compliance with regulatory protocols”. (Crypto Potato)
That does it for this week’s highlights!
Until next week👋
References
Regulatory News
1. “New Swiss DLT Regulations to enter into force starting February 2021”
Industry Updates
1. “Valkyrie Digital Assets Files for Bitcoin ETF”
2. “tZERO Announces Platform Evolution in Partnership with Prime Trust”
3. “Farmers Turn to Tokenized Assets in Argentina Amid Tumbling Peso”
Investment and Financing
1. Arca Digital Asset Investment Fund Scores $10M in Series A Funding Round
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RedBlock Inc is a digital investment and fintech firm leveraging blockchain technology for asset digitization and management, from issuance to secondary liquidity. Its global network of capital market participants, including issuers, broker-dealers, secondary exchanges, funds, liquidity providers and custodians, are supported by its end-to-end blockchain-powered asset management platform. RedBlock also manages an investment fund to support companies in its ecosystem that align with its investment thesis. With a growing track record and pipeline, the RedBlock team hails from top tier global investment banks, venture capital firms and blockchain technology companies.
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