DALLAS, — A smart security is a blockchain-based digital ownership claim in an underlying asset such as real estate, private placement offerings, equities, debt, revenue, and other instruments of intrinsic value.
The untapped value of the global private equity market for smart securities alone is estimated to be worth $70 trillion. “Whether you call them smart securities, digital securities or security tokens the post-ICO compliant approach to blockchain-based venture fundraising is poised to unlock trillions of dollars of capital market value,” says Thomas Carter.
At the forefront of the smart securities, revolution is Carter, a 30-year fintech innovator and CEO of Deal Box, an innovative digital securities issuance and investment platform.
Deal Box has gained attention lately with the creation of a feature-rich, and robust platform using a proprietary token technology built on the Stellar Lumens (XLM) blockchain protocol that addresses SEC/FINRA requirements.
Deal Box gives issuers and investors a savvy approach to being first-in-line to the smart securities opportunity.
Thomas on the Recent Evolution of Capital Markets:
“The 2012 JOBS act enabled retail investors to begin participating in the growth of early-stage companies in a compliant way via crowdfunding and peer-to-peer lending.
“2017 was the year of the ICO, or Initial Coin Offering, in which hundreds of companies issued blockchain-based, ‘utility’ tokens to raise capital. Since then, the regulatory framework has curbed the enthusiasm of ICOs and has since given way to Security Tokens.
“At the end of 2018, what was apparent was that raising capital with digital tokens was efficient and viable. What also became apparent was that consistent and standardized regulatory oversight was badly needed.
“What we are seeing now is that the regulatory framework has evolved in conjunction with the infrastructure, which is exactly what institutions have been waiting for. For those who understand the new smart securities paradigm, it’s officially game on.
“Going forward, in order for broader adoption to occur, educating the market on the advantages of smart securities is where the focus will need to be and that is the mission statement at Deal Box.”
Advantages of Smart Securities
Smart securities are superior to traditional instruments in that they offer programmable functionality which eliminates back-office friction and costs as well as enables fractionalized ownership with regard to these structures.
There are several advantages to leveraging the new digital security token asset class:
• Faster, better, cheaper – Since digital securities are programmable “smart” instruments they eliminate layers of time-consuming paperwork, middlemen and red-tape.
• Augmented Liquidity – Digital securities live in a 24/7/365 global market and help to increase efficiency in the pre-existing market for private company shares.
• Flexibility – Again, the programmable nature of digital securities opens issuance strategies previously unavailable via traditional instruments.
• Immutable & Transparent – The secret sauce that blockchain brings to the table is the power of an easily audited, distributed ledger that maintains immutable integrity without human intervention.
• Regulatory Compliance – Issued via Reg D, Reg A+, etc., digital securities are fully compliant with SEC/FINRA requirements.
The rub is that raising capital has never been easy and although all the pieces to the security token offering puzzle are now available, they are not easily found all together in one solution. The Deal Box technology stack and automated workflows connects all the dots, thus removing intermediaries and related clunky legacy systems – allowing for a truly compliant peer to peer investor issuer experience.
Thomas on Deal Box:
“Deal Box is the culmination of 25 years of venture capital funding experience. Deal Box has been setting the standard for how data is presented and shared in private equity investment workflow.
“We’ve created a unified strategy for security token offerings which includes everything an issuer will need to take advantage of the benefits offered by advances in financial technology and security tokens.
“Our novel approach to investor-centric workflow optimization has been integrated into compliance and technology for the issuance of and investment in smart securities.”
Deal Box Launch
Deal Box may be a new name to the security token ecosystem but the platform is far from being a beta product.
Deal Box made its presence known at Blockchain week 2019 in New York by sponsoring the Digital Asset Summit Conference and the Sharespost event during Consensus.
Over 150,000 people have signed up to Deal Box to date.
In total, Deal Box represents 25 issuers under the platform umbrella and marketplace which are currently available for diligence and investment via DLBX.io.
This past February, Deal Box hosted the Innovation Finance Forum in Newport Beach, CA which presented the first-ever multiple issuer security token offering pitch event, the first of a series of events planned for this year.
10 innovative founders kicked-off security token offerings to a curated gathering of who’s-who in fintech, blockchain, family offices and investing.
Like any capital raising process, the launch of even a single security token offering is a complicated affair with many moving parts. The proven workflow methodology and software efficiency of the Deal Box platform streamlines this process and gives issuers and investors a powerful suite of tools to take advantage of the benefits of digital securities.
Share in Deal Box’s Success
Those looking to raise venture capital with security tokens are well met with Deal Box’s unified solution.
As an investment opportunity Deal Box also offers a unique and innovative approach.
Investors are welcome to participate in any one security token offering hosted on the platform, however, by owning the DLBX token, which is itself a security token, holders gain access to a full 25% royalty revenue distribution on gross profits realized on the Deal Box platform.
For details on the DLBX security token offering, please visit dlbx.io/privatesale.
Considering a capital raise using security tokens? Learn more.
“Smart securities are the preeminent evolution of capital markets. Deal Box empowers issuers and investors with an intelligent platform to participate in that evolution.”
—Thomas Carter, founder and CEO of DealBox; read about Thomas: “This FinTech Veteran Is Making Cryptocurrency Startup Funding Legitimate”; connect with Thomas on LinkedIn, Instagram and Twitter.