The startup Blockchain Harbor has officially launched its security token compliance platform and is moving to offer digitized actions in a skyscraper located in South Carolina.
Announced Tuesday at CoinDesk's Consensus event: Invest, Harbor now allows investors to register to purchase shares in the condominium called The Hub at Columbia, owned by the real estate wing of DRW Holdings, Convexity Properties. There are 955 shares – represented by 955 tokens – available at a cost of $ 21,000 each.
The company, which raised $ 28 million at the start of this year, develops ERC-20 token, an etherum standard, for companies that want to implement actions or other forms of interest through a & # 39; Tokenised offer.
Harbor CEO Josh Stein told CoinDesk that the company's platform allows you to monitor the traffic of security tokens and the real identity of investors in real time, ensuring that token sales are "always compliant, everywhere" .
The offers on the Harbor security token platform work similar to a normal sale of private placements, he explained. The main difference derives from the use of a protocol and a blockchain structure by the platform, which allow companies to draw on a wider pool of investors.
Generally, an offer such as Convexity could be sold to 10 or 20 investors, each of whom should contribute a substantial part of the total funding. The Harbor platform makes it easier for 100-2000 accredited investors to participate, allowing each person a minimum of $ 21,000, which is lower than normal.
Even the limit of 2,000 investors is regulatory – companies with a larger number of investors must become public.
How does it work
An interested investor can register on a dedicated website, where he will be redirected to Harbor to fill out a know-your-customer (KYC) form. The portal will require investors to share identifying information and upload a copy of the driving license, as well as upload documents that prove income and resources for accreditation, Stein said, adding:
"The KYC takes place in a couple of minutes. Accreditation, verification of assets and income, requires … 1-3 days for an individual and 2-12 days for an entity and the reason why it is necessary to detach the layers and [verify accreditation for individuals in the entity]".
Once an investor has been approved, he can sign the documents by purchasing the tokens electronically.
On the token side, an external security company controls the smart contract and a "Big Four" accounting company will monitor payment flows, Stein said.
Unlike other private placement sales, investors can also use bitcoins or ethereum to buy tokens. Harbor will send cryptocurrencies without converting them if not necessary, allowing refunds without requiring conversion fees, Stein added.
To this end, the company is collaborating with BitGo in the custody of any cryptographic assets received.
The offer allows investors to participate in sales together with the main operators. In the case of Convexity, its parent company DRW owns just over 50% of interest in The Hub.
If investors wish to trade or sell their shares, they can do so after 90 days, another difference from traditional private sales, which blocks them for a longer period of time. Stein said, "You can pull your investment if you want to."
He also compared the shift from traditional securities trading to the transition from writing letters to written electronic mail. Using the internet to send messages proved to be much more efficient than writing and publishing letters, he said, saying:
"Now blockchain, like e-mail, offers us a faster, cheaper and simpler world of an order of magnitude."
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