Zürich, Switzerland / London, United Kingdom, 25.06.2019 – R3, the enterprise blockchain software firm, and Swiss security token provider BlockState announce the successful completion of a project, developed by BlockState, to enable the passporting of Ethereum-issued smart contracts to R3’s permissioned blockchain platform Corda. Achieving interoperability between permissioned and permissionless protocols is an important milestone for acceptance of token-based issuance and investing for investors.
David E. Rutter, CEO of R3 said, “the tokenisation of securities has potential to make a huge impact on the way markets function. Not only can it bring down the costs of issuing and trading existing asset classes, but open the trading of new assets such as property portfolios and illiquid corporate bonds. This has significant potential benefits for issuers, institutional traders and, ultimately, ordinary investors.
“R3 is actively engaged with a number of leading exchanges and trading platforms on tokenisation which are using Corda’s Token SDK to issue, move and redeem tokenised securities. This work with BlockState makes Corda-based applications interoperable with Ethereum smart-contracts, further widening the appeal of developing this next generation of exchanges on Corda.”
Security token issuances have been growing strongly in numbers and volume since 2017, with an over 40 per cent increase of STOs in 2018 compared to the previous year. While the space is still being dominated by equity issuances from fintech and blockchain companies in a few jurisdictions, the market is seeing growing diversity in terms of asset classes, industries and geographies. This growth and signal of interest among issuers beyond the blockchain and crypto space, combined with the increasing clarity on pan-European regulation, emerging primary and secondary markets and increasingly integrated technological solutions clears the path for mass market adoption of tokenisation.
BlockState provides a Swiss-regulated security tokenisation platform for equity, debt and non-bankable assets like real estate. The first pilot for this integration will be BlockState’s currently running security token offering, before the functionality will be integrated as a standard offer for all issuers using the BlockState platform. To date, BlockState has unveiled its first client – an SME from the urban music and lifestyle industry, Streetlife. Streetlife will tokenize and issue equity on the BlockState platform and is the first candidate to passport a ERC-20 issued security token to regulated exchanges and Swiss financial institutions running on Corda. Five further Security Token Offerings from various industries, geographies and asset classes are set to take place in 2019.
“One of the main promises of tokenisation is the improved access to capital markets for both issuers and investors.” Says Paul Claudius. “While the current state of the security token value chain is already a big leap forward, integrations like these are enabling interoperability between the many protocols and solutions out there and creating a truly integrated ecosystem to maximise the impact and flexibility of blockchain based financial market infrastructure.
More information about the BlockState STO at https://blockstate.com/sto/blockstate/
BlockState was founded in 2018 in Zug, Switzerland, and has offices in Berlin, Germany. It is a fully compliant security token platform for SME equity or debt and real estate. BlockState provides an end-to-end Security Tokenisation platform to digitise the ownership to privately owned assets and issue them to a global investor audience, making use of Blockchain technology for efficiency gains and financial product innovation. BlockState is supported by international investors and advisors from the financial market, technology and legal space. BlockState is currently hosting the issuance of its own company equity to investors globally.
R3 is an enterprise blockchain software firm working with a global ecosystem of more than 300 participants across multiple industries from both the private and public sectors to develop on Corda, its open-source blockchain platform, and Corda Enterprise, a commercial version of Corda for enterprise usage.
R3’s global team of over 200 professionals in 13 countries is supported by over 2,000 technology, financial, and legal experts drawn from its global member base.
The Corda platform is already being used in industries from financial services to healthcare, shipping, insurance and more. It records, manages and executes institutions’ financial agreements in perfect synchrony with their peers, creating a world of frictionless commerce.