Blockchain Solutions for Regulated Assets
•Security Token Offering (STO) Strategy & Logistics
•Liquidity Engineering for Private REITs & Private Equity
Please don’t hesitate to reach out to me here, or email me at [email protected], call me at 916-616-6116, or find me at LinkedIn.com/in/JayDerenthal.
Here are three examples of the solutions I provide plus a quick look at how blockchain technology makes the magic possible:
☑ Private REIT Collateralization
· Old Thinking ❝Illiquidity makes private REITs hard to buy and harder to sell in an industry still running on spreadsheets and fax machines.❞
· New Thinking ❝Asset tokenization transforms REIT shares into digital ʽsecurity tokensʼ that facilitate paperless trading among LPs. Cap table automation saves time. Broker disintermediation cuts costs. Security tokens can serve as loan collateral for stablecoins and cash liquidity.❞
☑ Early-stage company fundraising ─ Reg D 506(c) STO
•US & foreign issuers can raise any amount from accredited investors.
·Typical raise $500,000 to $2 million
·Low costs for legal fees, audits, investor onboarding
·Multi-year fundraising window
☑ Mid-stage company capital formation ─ Reg A+ Tier 2 STO (aka ‘tokenized mini-IPO’)
•US & Canadian issuers can raise up to $50 million from accredited and ‘Main Street’ investors.
·Typical raise $8 million to $15 million
·Significant costs for legal fees, audits, investor onboarding
·1-year fundraising window
•Fundraising success may require strong consumer appeal (biotech, consumer tech, real estate, food & beverage) coupled with an experienced management team.
Tokenized Securities – a rough outline
➊ A blockchain technology called “asset tokenization” transforms traditional shares into tradeable digital assets called ʽsecurity tokensʼ.
➋ Each security token is encoded with self-executing investment contracts & automated adherence to shareholder cap & lockup period compliance protocols.
➌ Cap table automation simplifies administration of disclosures, consents, distributions, and voting.
➍ Paperless trading among LPs can be authorized case-by-case or allowed more broadly.
➎ ATS listing may open secondary market exposure that mollifies illiquidity discounts.
➏ Well-timed listing on a security token exchange may open price discovery that shores up NAV.
•Blockchain securities issuance, compliance, governance, custody, liquidity.
•Liquidity Engineering for Private REITs, PE Funds, VC Funds
•Security Token Offerings (STOs) – set up & management of exempt offerings including:
▫ Regulation D (Rule 506b, 506c, 504)
▫ Regulation A (Tier 1 & 2)
▫ Regulation CF
▫ Regulation S
▫ Intrastate (Rule 147 & Rule 147A)
Nasdaq ─ writer covering enterprise blockchain.
Yahoo Finance ─ writer covering enterprise blockchain.
Securities.io ─ writer covering the security token industry.
Bitcoin Magazine ─ writer covering cryptocurrencies & token offerings.
EDU Ecosystem ─ Led development and growth of LiveEdu.tv’s Blockchain & Cryptocurrency curricula.
For more info or if you have any questions, please reach out to me here, or email me at [email protected], call me at 916-616-6116, or find me at LinkedIn.com/in/JayDerenthal.
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