As of January 16th 2019, Aspencoin— the digital security linked to a luxury resort in Colorado— is officially transitioning to the Securitize. The news has come after a successful and SEC-compliant funding round for Aspencoin, which had an $18 million valuation.
Aspencoin’s Switch to Securitize Explained
Aspencoin represents fractional equity ownership of the luxury St. Regis Aspen Resort in Colorado, USA.
The digital asset was sold to investors in a security token offering (STO) which was originally promoted by crowdfunding giant Indiegogo and issued by Templum. The offering— an SEC compliant Reg D 506 (c)— had a reported valuation of $18 million.
Now, Aspencoin has migrated to Securitize due to its DS Protocol— one of several ERC-20 compatible security token standards.
Aspencoin believes the DS Protocol will add to the digital asset’s liquidity by enabling the security to be tradable across various security token platforms.
Stephane De Baets, founder of Aspencoin, described the vision behind the security as trailblazing the path for equity ownership recorded through Distributed Ledger Technology (DLT) in a regulatory compliant manner:
“We want to enable investors to benefit from the accessibility, liquidity, and transparency of real estate digital securities.”
By transitioning to securitize, no new Aspencoin digital securities will be generated. Eligible investors who wish to purchase the Aspencoin digital security can do so once the asset is available through secondary market trading.
How Equity is Only One Domain of Security Tokens
With the rapidly developing tokenization of securities, equity is just one domain experiencing the benefits of DLT.
Fine art, REITs, investment funds, and other aspects of real estate have already experienced the advantages of FinTech’s latest integration.
In addition, the successful tokenization of equity hasn’t been limited to the United States. Countries such as Malta, Germany, and Switzerland have also witnessed compliant security tokens which featured equity ownership.
Digital securities— also referred to as security tokens— offer numerous benefits when compared to their traditional counterparts. For more on these benefits, be sure to check out our comprehensive security token guide.
Ultimately, Securitize founder and CEO Carlos Domingo believes the advantages offered by DLT will result in a significant change for the capital markets industry:
“We’re excited to help the whole industry transition from legacy technology systems to fully decentralized ledgers that are transparent, auditable and have features such as instant transfer settlement of digital security ownership for assets such as real estate.”
What do you think about Aspencoin’s transition to Securitize? Will DLT revolutionize traditional finance as forecasted by so many in the digital asset industry? Let us know what you think in the comments section below.
Image courtesy of Aspencoin.