Regulation The World Over ; DeFi & Interoperability; An Institutional STO

RedBlock Newsletter #15- Week Ending October 18th

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Greetings all! This week brings news of regulatory developments, interesting and exciting DeFi applications, and more!

We also have a new Security Token Group report syndication, hot off the presses! This time from Security Token Advisors: Security Tokens Explained in 4 Layers; A Guide for Investors and Issuers; a very handy guide to what makes up security tokens, and what to consider when going about investing in or issuing them. You can check that article out on our site here.

The next issuance platform report in our issuance platform research series, this time covering Bitbond (BB1), is ready and live as well.

Expect more content like this from our partners and us, as we both promote asset tokenization and digitization.

…and we are still taking applications to be a RedLedgers beta tester!

Please fill in our application form if you are interested- Closed Beta Form

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  1. India’s Crypto Community- Getting Out of the Grey Area

Recent news coming out of India as the crypto community there is pushing for a sandbox approach in the development and rollout of crypto platforms. This comes amid the familiar regulatory grey area crypto can live in unless otherwise defined. The sandbox approach “proposes a regulatory framework to bring crypto assets under existing regulations while also setting up a supervised space for startups to develop in the sector.” This should set the scene for the growth of crypto applications, without the looming legal trouble that living in a grey area comes with. (NASDAQ)

2. An Important Mission- Worldwide Legal Clarification for Cryptocurrency

The OECD (Organization for Economic Co-operation and Development) recently announced plans to propose a tax reporting framework for cryptocurrencies that can work on an international scale, giving countries’ “tax authorities guardrails for clarifying their local treatment of cryptocurrencies while also accounting for international [exchanges]”. (NASDAQ)

3. The British Virgin Islands is Pushing for FinTech Innovation

The British Virgin Islands has recently taken steps to establish itself as a center for fintech innovation by launching a sandbox, albeit with a lighter regulatory framework surrounding. Although lighter, the sandbox will perform the function of defining regulations and thus getting fintech startups operating in the British Virgin Islands out of their legal grey areas. (mondaq)

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  1. Securitize is Teaming up with DeFi Protocol Tinlake

Our partners at Securitize have just teamed up with Tinlake, “which uses a clever system of non-fungible tokens (NFTs) to enable real-world assets to participate in DeFi.” This integration, unlike other DeFi integrations, is only for those with wallets with a Securitize ID, which means the participants in a trade are known. What Securitize is seeking to do here is provide a way to perform functions “that exist in traditional capital markets, like market making, or lending and borrowing, all in an automated way” according to CEO Carlos Domingo. (NASDAQ)

2. Solana’s New Project, Wormhole

Blockchain platform Solana has just launched Wormhole, its latest project. As the name suggests, this project seeks to “[implement] a unique high powered and permissionless blockchain that would connect ETH and ERC20 tokens to SPL Tokens.” This is a very welcome development in the blockchain sector, as this would be one of the latest projects to launch in the name of interoperability. (BTCMANAGER)

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  1. BoringDAO Sees a Substantial Round of Investments, and For Good Reason

Described as a “decentralized bridge between Ethereum and other Blockchain assets” BoringDAO has raised $1.4 million from a number of blockchain investors. With a mission to tokenize the world’s assets, BoringDAO has a forthcoming rollout of its bBTC token. This token, which is a tokenized Bitcoin asset, “will be collateralized by 200% and leverage a double pledge model.” This means more security for users of bBTC, due to, as explained by BoringDAO, the fact that the token is backed by 200%+ assets. The bBTC also leverages the power of smart contracts and avails access to DeFi. (Bitcoin.com & BoringDAO via Medium.com)

2. Institutional Adoption of Security Tokens in Japan

One of the leading and main financial services companies in Japan, SBI Holdings, will launch its first STO (Security Token Offering). This STO will happen through its gaming subsidiary. The decision is due to the fact that the company “sees the security token offerings industry… [as] a ‘core fintech technology’.” Moreover, SBI Holdings has future plans to tokenize real estate and IP rights for media. (Finance Magnates)

References

Regulatory News

  1. “Amid Confusion About Rules, Indian Crypto Community Pushes for Regulatory Sandbox”

https://www.nasdaq.com/articles/amid-confusion-about-rules-indian-crypto-community-pushes-for-regulatory-sandbox-2020-10

2. “OECD Preparing Crypto Tax Reporting Framework for World’s Largest Economies”

https://www.nasdaq.com/articles/oecd-preparing-crypto-tax-reporting-framework-for-worlds-largest-economies-2020-10-12

3. “British Virgin Islands: Sandy Shores And Sandboxes: BVI Introduces Regulatory Sandbox For Fintech Innovation”

https://www.mondaq.com/financial-services/993202/sandy-shores-and-sandboxes-bvi-introduces-regulatory-sandbox-for-fintech-innovation

Industry Updates

  1. “Securitize Is Taking Ethereum-Based Securities Into the DeFi Realm”

https://www.nasdaq.com/articles/securitize-is-taking-ethereum-based-securities-into-the-defi-realm-2020-10-12

2. “Solana Launches Secure Gateway to Ethereum Blockchain”

https://btcmanager.com/solana-ethereum-blockchain/

Investment and Financing Progress

  1. “Boringdao Raises $1.4M: Project’s Tokenized BTC Bridge Backed by 200% Collateral”

https://news.bitcoin.com/boringdao-raises-1-4m-projects-tokenized-btc-bridge-backed-by-200-collateral/

“BoringDAO 🌀 — Turn All Other Blockchain Into Layer Two Of Bitcoin”

https://medium.com/@BoringDAO_Defi/boringdao-the-layer-two-of-bitcoin-6a2dc6af57ce

2. “Japan’s SBI Holdings Kicks off First Security Token Offering”

https://www.financemagnates.com/cryptocurrency/news/japans-sbi-holdings-kicks-off-first-security-token-offering/

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About RedBlock

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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