Security Tokens O and blockchain

sto v1

source: medium

On the panel about securities and blockchain at Japan Blockchain 2019, speakers included:

J Todd Morley Y2X

Dave Shuler Y2X

Fujiyo Ishiguro CEO

Manmeet Singh EMURGO/CIO

fujiyo v1

Source: youtube


CEO Ishiguro is an advisor of Governments in Blockchain and her greatest concern is funds.  Her view is that blockchain will change the world and so policy makers ought to pay greater attention to what is developing.  CEO Ishiguro speaks of how digitalisation would impact whole industries including the banking sector which is not performing so well.


source: MOAF


Shuler talks about the market and how the housing market is the centre of securing liquidity.  He talks about trust and different cash flows, he mentions the interesting thing about ICO is about purchasing the utility service and how it is largely going to be replaced by STOs.  He talks about one can combine the utility function, strategic partnerships in smart contracts and taken.  It is enormously more powerful than securitisation.  He is foreseeing that there is going to be interesting developments, for example AI and balance sheets that are driven by technology that moves quickly.

sto 5

source: blockchain

Morley speaks of STOs and securitisation is going stay.  He talks about how in New York there is a perception that those from LA are ‘Crazy’.  How everything is being digitalised.  He believes it unlocks the equity premium, that is people are willing to pay more for something that is liquid could be 20-30% e.g. of total real estate value.

Shurler talks about how some items can be useless or not valued much, however, Shurler seems to suggest that you could raise money quickly for a basis of 10-15 million dollars.  He mentions if you tokenise it, monertise it and breathing more life into it.  He talks about how about investing in unknown markets.

Morley follows to suggest that security tokens need to meet regulatory demands and starts to question what the challenges for the ecosystem?

emurgo 1

CIO Singh starts by saying that the technologies are there.  What we are missing is what the regulatory environment?   One school of thought is it is no different from other traditional security markets.  Another school of thought is that we could create a new asset class and a new perspective along security and the nature of the security – that would need new regulations

In terms of challenge for STOs and challenges for ICOs is we need to cut through easy of flipping of token mentality.  It is not the retail investors that will grow industry, it is the institutions that would grow and there are issues of risk and insurance.  Some have learnt from past ICO experiences, and what they understand are the traditional markets and built great careers on and of course traditional assets.

So one way is to bring those assets, then bring into tokenise them, and add a layer of blockchain and tackle inefficiency and then go to do ICO.  That was what attracted CIO Singh into Blockchain.  There is not a single entitle that CIO Singh knows is successfully bridging this gap, and then doing STOs.

A question on the floor – is there an exchange to trade security tokens?  What can entrepreneurs do to ensure people can buy their tokens?

sto 4

The king is naked he said.  Morley says there are a number of exchanges that have approval and/or pending.  For example in Bermuda.  He is confident that tokens would be trading soon.  How about allowing people to invest?  What kind of investors are you targeting?  Asked in return.

Show the world you are solving a mega problem, CIO Singh says.

Show people that you and your team are the best people to do it and it is a sizeable impact you can get financial institutions to back you up.

Singh says you can do a security token for investments for fundraising.  Though his message for entrepreneurs is to focus on the business.

Shuler refers back to the industrial revolution and mentioned how during that period that there were only 3 IPOs, now is a different scene.  He talks about how people ask all these questions, but at the end of the day, startups and businesses that invest, work in and believe to make it happen can create the impact they desire.

The market, governments and policy needs to catch up.




Written by Helen Tung

Emergent Tech Advisor/MINERVA Fellow

EU-Japan Centre

#NewSpace2060  @EUJapanCentre #JBC2019

Written by Helen Tung

Emergent Tech Advisor/MINERVA Fellow

EU-Japan Centre

#NewSpace2060  @EUJapanCentre #JBC2019




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