Investacrowd Says STO or DSO will Attract Owners who have High Quality Illiquid Asset
The crypto space is still a niche market within the financial market in terms of capitalization or circulation. The emergence of security token offering (STO) or Digital Security Offering (DSO) may completely change the situation. Julian Kwan, CEO of InvestaCrowd said in an interview with STONetwork that STO or DSO will attract owners who have high quality illiquid asset who do not necessary want to sell the entire asset, and looking for some liquidity out of the value derive from the asset.
” I think the ultimate position is we now have different way for asset owner to use an asset. Again without having to sell which take a very long time. All these people do not actually want to sell their asset but typically you gotta sell it or you don’t sell it, said Julian. He thinks it’s create a huge opportunity for both owners and investors. The Investors have opportunity to access in whole new different product range, by 5% of building instead of 100% of building. And the same thing for investor typically is buy it or not.
“When you buy it, you need a lot of money, time, etc. ”
The market always discussing about the STO/DSO can redesign the definition of equity and debt. But the progress still slow today. Julian pointed out a lot of people only know about STO and DSO market from ICO market. That couldn’t be really further apart other than having the same underlying technology. “The key infrastructure in the market need to rebuild. Just like Investacrowd building and offering primary issuance, so we can help the building owner to tokenize their asset, share holding, and investment vehicle. And also raise money around the investors and licensers.”
InvestaCrowd is the leading Singapore investment platform for digital security investment offerings and holds a Capital Markets Services License issued by the Monetary Authority of Singapore for dealing in securities. Julian said the next step is building their primary issuance technology that can help client advise and structure their digital security offering. “We can issue the token for themselves and issue the token on the platform. We can also help to raise money for them, it is one of the most important element of
STO and DSO space.”
“Investors can buy and sell without being stuck in these investment for typically 5 to 10 years.”
InvestaCrowd is applying the license for the digital securities exchange, ICTX. Julian said the exchange can help the whole ecosystem. Another platform where issue of security token and DSO can found a home where their token can be traded. “That’s a very valuable part of the ecosystem, and obviously we need a lot of partner along the way to help us get there.”
Soul Capital, one of the most active angel investors in Hong Kong which invested in InvestaCrowd. Also the leading global blockchain venture capital firm SPiCE VC invested in this Asia leading digital securities investment platform. Both investors eyes on STO/DSO as an evolution for illiquid assets. ” We obviously want the sooner the better, but things have to be done properly, and investors have to be showed on great projects. It really comes down to the quality of underlying securities,” said Julian.