STOs and ICOs are both fundraising methods where capital is raised in return for a digital asset. In 2018, ICOs raised nearly $8 billion… But now they raise about 58 times less, and the STO has emerged. So far, 64 STOs have raised a total of $1 billion. In Q1 of 2019 alone, STOs saw a 130% increase. Learn the difference between the two...

Last week, Blockstack announced the first-ever SEC-qualified Reg A+ token offering. Already, the Props Project has announced the second. The Reg A+ platform lets companies raise up to $50 million from retail investors, as opposed to only from accredited investors. Security tokens incorporate the SEC’s existing regulations… While ICOs now raise 58 times less than they did just over one year ago, STOs have raised nearly $1 billion to date—with data suggesting enormous potential.

STOs are growing rapidly in volume and number. There were five STOs in 2017, with a total issuance of $65.59 million… and 35 STOs in 2018, with a total volume of $434.95 million. Equity is the most common asset class—by far the largest part of finished issuances was conducted for company equity, followed by asset-backed securities.

tZERO has officially launched its cryptocurrency trading app. The app immediately features two currencies—Bitcoin and Ethereum—with additional assets in the pipeline. Investors will be able to access private keys even if their mobile phones are lost, and a private key recovery system can restore funds or digital currencies.

In addition to Libra, Facebook will be releasing a security token. The Libra Investment Token (LIT) will be a free-floating asset similar to a stock. There are strict requirements over who can purchase these tokens. For example, one needs to have either $1 billion as a traditional company or in managed cryptocurrency assets. Each LIT will be a stake in Facebook’s cryptocurrency project.

Oil and energy company Ziyen Inc. just announced it will tokenize oil assets. The energy company is the first such company to list oil assets on the Ethereum blockchain. The oil blockchain industry is being pushed by the security token sector… and we’ve seen similar efforts in other sectors, such as tokenizing gold bars or other metals.

Facebook’s developing cryptocurrency has been kept secret by the social media giant, with few details publicly known. However, recent reporting suggests Libra (not “GlobalCoin,” as it was previously dubbed) will be a multicurrency-backed stablecoin used for purchases in products such as Facebook Messenger and WhatsApp with no fees. A whitepaper is expected to be released on June 18.

It’s not often you hear about the media industry taking notice of security tokens. However, film producer Ryan Kavanaugh is looking to change that. His firm, Proxima Media, is launching its own token called Proxicoin to allow for investment in various media content. Small investors will finally be able to take part in this booming industry through fractional ownership of film, television, music, and other IP-driven content.

The wait is over for non-accredited investors… In Q2 2019, the required holding periods for two digital securities will expire on the OpenFinance Network. OpenFinance was the first regulated platform for secondary trading of security tokens in the U.S. But only accredited investors have been able to participate in STOs, per U.S. regulators. Until now...

Some of the world’s biggest banks are said to be investing around $50 million to build a blockchain-based digital cash settlement system. A Reuters report on Friday, citing “people familiar with the plans,” said possibly a dozen unspecified banks are involved in the project. The participating banks will reportedly be setting up a new entity called Fnality for the project, which could launch next year.

The SEC’s role should be to guide innovation, not stifle it. Pierce voiced her concern over the SEC’s lack of meaningful action in the crypto space—and whether this will ultimately come back to haunt it. She asserted that the SEC is paralyzed with indecision, and this could hurt the cryptocurrency space in the long run.

Utility tokens versus security tokens: what’s the difference? According to Polymath’s chief product officer Thomas Borrel, the future lies with security tokens because they make the most sense as a financial instrument. And tokenizing equity is just the tip of the iceberg.