20|30 to Raise £3M on London Stock Exchange

As reported, campaign of 20|30 was conceived by LSEG as a demonstration of the possibilities for modernizing financial markets with tokenized securitie
15 April 2019   1173

The blockchain startup 20 | 30 raised £ 3m through the sale of tokenized securities through the London Stock Exchange Group (LSEG) platform, CoinDesk writes.

Campaign of 20 | 30 was conceived by LSEG as a demonstration of the possibilities for modernizing financial markets with tokenized securities and implying the use of Fiat by potential investors.

20 | 30 deals with the tokenization of securities using distributed registry technology. The firm participated in the fourth stream of the regulatory sandbox of the Financial Conduct Authority of the United Kingdom (FCA).

LSEG and FCA have previously reported that they are working from 20 | 30 and Nivaura blockchain start-up to prepare the first campaign to place tokenized securities in the UK in compliance with the requirements covering storage, clearing and settlement. The ultimate goal of the project is to create "tools to help companies raise capital in a more efficient and streamlined way."

Someone can use our technology to do all the legal documentation, tokenize these assets and execute them. LSEG has then been forward-thinking enough to help get these orders out to the existing market.
 

Dr. Avtar Sehra

CEO and chief product architect, Nivaura

After the initial issue of securities on the Ethereum blockchain, the possibility of making transfers on the secondary market will be provided, and then other elements of the private financing market will be reproduced.

Court to Ban TON Tokens Release

U.S. District Judge P. Kevin Castel, of the Southern District of New York issued a temporary restiction, therefore supporing the SEC
25 March 2020   1028

The American court issued an order to the developer of the Telegram messenger, according to which he should refrain from the distribution of tokens of the TON blockchain project planned for next month.

According to CoinDesk, on March 24, the District Judge of the Southern District of New York, Kevin Castel, issued a temporary injunction, recognizing the SEC's arguments regarding the sale of unregistered securities by the company as reasonable.

The Court finds that the SEC has shown a substantial likelihood of success in proving that the contracts and understandings at issue, including the sale of 2.9 billion Grams to 175 purchasers in exchange for $1.7 billion, are part of a larger scheme to distribute those Grams into a secondary public market, which would be supported by Telegram’s ongoing efforts.

 

Kevin Castel

U.S. District Judge

According to the judge, this feature does not allow considering the Telegram offer as subject to exceptional conditions. He also noted that Telegram structured its project in such a way as to attract “the maximum number of primary buyers” against the background of the expectation of maximum profit at the time of launch.

Considering the economic realities under the Howey test, the Court finds that, in the context of that scheme, the resale of Grams into the secondary public market would be an integral part of the sale of securities without a required registration statement. 

 

Kevin Castel

U.S. District Judge

Conducting an analysis from the standpoint of the Howey test, the judge stated that buyers expected to profit from participating in the campaign. Moreover, although Telegram may argue that it will not become a guiding force in the further development of TON, “in fact,” it will be precisely this.

The judge agreed to distinguish between non-existent Gram tokens and securities purchased by TON investors, but refused to support Telegram's argument that Gram would be a commodity.

The Court rejects Telegram’s characterization of the purported security in this case. While helpful as a shorthand reference, the security in this case is not simply the Gram, which is little more than [an] alphanumeric cryptographic sequence.

 

Kevin Castel

U.S. District Judge

This is not the final decision, but it can serve as a powerful indicator of what position the court will adhere to further.