Regulation CF; China’s Digital Yuan; Curzio and MERJ Break Ground

RedBlock Newsletter: Week Ending November 8th

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Hello again! This week we’re talking Regulation CF, a pioneering development from Curzio and MERJ, China’s successful digital yuan pilot program, and other headlines in the world of digital assets.

The latest research report published in our issuance platform series this week covers the platform Tokenomica, so check it out, live in our research hub!

And keep an eye out for a very special announcement next week. You don’t want to miss it.

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1. Let’s Talk Regulation CF

This week brought another landmark ruling from the US SEC regarding Regulation CF. The news, broke by investing platform Republic, was, according to a string of tweets on their official Twitter account, a development that was years in the making (and as a result of a lot of lobbying, of course).

The significance of this development really can’t be overstated, as it brings the investment cap for companies that are raising capital through Regulation CF from its previous limit of $1.07 million to $5 million. This is the latest development handed down from the Jay Clayton-helmed SEC.

So, why is this significant? According to Republic’s Twitter announcement, this will “allow for startups to raise more from their communities and give communities a bigger slice of the pie. It will also incentivize later-stage startups raising more money to consider a campaign on [their] platform.” (securities.io & Republic’s Twitter)

2. VAIOT Leads The Way in Malta

Another milestone was reached this week as VAIOT, an intelligent contract company with a proprietary AI and blockchain-based distributed network concept, has become the first blockchain project to “register its whitepaper with the Maltese authorities under its new regulatory framework for regulating digital assets”.

This bodes especially well for VAIOT’s STO, as it operates and trades within a regulatory environment that is clear and secure. (NEWSBTC)

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1. Curzio and MERJ Break New Ground

Now this. This is something we are very proud to report to you. This momentous news comes to you from our partners at Security Token Advisors and is a pioneering moment (original article here).

Late last week, at the end of October, we were treated to the news that Curzio, a financial newsletter industry leader and client of Security Token Advisors, would be listing its “CEO” Security Token on the MERJ Exchange.

According to Security Token Advisors’ coverage of the listing, this makes Curzio “the first in the world to be a private United States-based company to list tokenized securities on a foreign public exchange that is open to US citizens and investors from any other recognized jurisdiction around the world.” (Security Token Advisors via Medium)

2. Fidelity Investments Expands to Asia

US-based Fidelity Investments recently announced plans to expand digital asset custody services to Asia with the mission to “help high-net-worth investors and family offices in the region with custodial crypto products.” The institutional player is one of the largest asset managers in the world, with $3.3 trillion under management. (Bitcoin.com)

3. The Success of China’s Digital Yuan Test Program

China’s test program of its digital yuan has passed a milestone this past week of processing 4 million transactions. People’s Bank of China’s (which issued 10 million digital yuan as part of the pilot program) Governor Yi Gang, while at the recent Hong Kong Fintech Week , talked of fintech companies’ ability to bolster “financial inclusion, with microloans and mobile payments bridging a gap for rural residents”.

While this test program was focused on retail and smaller transactions, this success could signal a full launch in the future. (PYMNTS)

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1. Crypto-assets Prove, Once Again, to be a Strong Choice for Investors

According to the crypto-asset hedge fund index by Vision Hill Group, the index’s tracked hedge funds have experienced returns of 126% this year.

Among the reasons for this are Bitcoin’s price increasing and the substantial growth and development of the DeFi space.

This news is a strong addition to the evidence that the crypto-asset market is maturing, with investors, both individual and institutional, seeing value in holding cryptocurrencies for the long-term. (Crowdfund Insider)

That does it for this week’s headlines. Thank you for reading, and remember to keep an eye out for a special announcement coming from us next week!

References

Regulatory News

1. “SEC Expands Reg CF Fundraising Limits from $1.07M to $5M”

Republic’s Twitter Announcement

2. “VAIOT Becomes the First Regulated Blockchain Project under Malta’s VFA Act”

Industry Updates

1. “Security Token Advisors Client Curzio Research Lists CEO Tokens on Exchange Partner MERJ in Historical First for Security Tokens”

2. “Fidelity Investments’ Digital Asset Custody Services Arm Expands to Asia”

3. “China’s Tests Of Digital Yuan Have Processed 4 Million Transactions”

Investment and Financing

1. “Digital Asset Hedge Funds are Up 126% in 2020 According to Vision Hill’s Index”

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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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