Security Token Offerings (STOs) will shape the future of a new era of investment opportunities in capital markets.
Only a few countries have started to accept cryptocurrency as a digital asset class. There are still fewer countries that have started considering digital securities as akin to the traditional capital market products. Singapore’s central bank and regulator, Monetary Authority of Singapore, has been a pioneer in this by clearly defining the nature of such digital securities and their regulation. Singapore has been progressive to define what type of digital token classify to be a type of capital market products to be regulated under the Securities and Futures Act (SFA) of Singapore. Such digital tokens or securities present a more secure, less risky and compliant investment avenue as compared to crypto-currencies.
Being a regulated, audited and ISO certified digital securities service provider based in Singapore, Propine offers asset managers the capability to explore the vast opportunities of investments in this new asset class with certainty.
Fund Houses And Family Offices
Asset allocation by family offices towards alternative financial instruments has been growing over the last few years. Investor groups are increasingly getting convinced that blockchain will fundamentally change the way the world invests. For the fund managers who have a growing need to mitigate risks from their exposure to crypto or for those fund managers who fear recessions and fading returns from traditional capital market products, the security token market is a rising asset class. Propine provides access to this new age digital securities market navigating the complexities as a regulated and audited service provider.
Digital Asset Exchanges
The increased interest in cryptocurrencies paved the way for a massive uptick in the number of cryptocurrency exchanges flooding the market. As a byproduct of this growth, cryptocurrency exchanges performed a dual function of custody as well as a trading market for investors. However, as evidenced by multiple attacks, the exchanges are not immune to security failures. With a reported loss of $828 million in 2017-18 alone, the need for custodial services was undisputed.
Propine is the first independent digital asset custodian in the Monetary Authority of Singapore’s regulatory sandbox to be granted a Capital Markets Service License. We provide custodial and asset servicing solutions to accredited and institutional investors through a state-of-the-art technology-agnostic platform, supporting both public and private blockchains.
As a regulatory innovator, Propine works closely with several governmental and quasi-governmental organisations to ensure robust reporting as required by the regulators governing the respective geographies for digital asset exchanges.
Issuers, be it corporations, investment trusts or governments have only raised funds in plain traditional capital market products such as equities and bonds or in structured products that are expensive and resource-intensive to administer. However, the rapid evolution of regulations and the development of a compliant industry infrastructure for digital securities not only opens a vast potential for businesses to access capital more cost-effectively and efficiently but also creates new models to generate value from the traditional businesses and assets.
With a deep understanding of capital markets and technology, a comprehensive ecosystem of partners, Propine offers end to end services for firms to harness the power of blockchain to raise capital and generate value across various regulatory regimes while being fully compliant.