Security Token news for Week Ending Friday 13 March 2020

Security Token news for Week Ending Friday 6 March 2020

Here is our pick of the 3 most important Security Tokens news stories during the week:

Security tokens, blockchain settlement draw interest from institutions: MIT conference panel

“Investors and participants are hungry for transparency in the space, and blockchain promises more transparency,” Kokoshi said. Coupled with the self-executing capability of smart contracts and the promise of lower costs, the technology is very enticing for issuers of security tokens…Lucas Nuzzi, network data product manager at Coin Metrics, agreed with Kokoshi’s assessment and highlighted security tokens as a “high point of interest” for institutions… there’s a lot of demand on the institutional side of things to explore…public blockchains like Ethereum as another backend for their services.”

Curator’s Note: At an MIT conference in Boston last week, Ada Kokoshi of State Street Corporation ($2.5T assets under management) declared the transparency of blockchain is ushering in the adoption of security tokens by issuers and institutional investors. Kokoshi judges the prime mover to be the crypto ecosystem’s ability to integrate with legacy systems to create efficiencies of speed, accuracy and lower costs. 

Morningstar Rates First Ethereum Security In $40 Million Fatburger Deal

“Fatburger just got a little more juicy thanks to a historic $40 million capital infusion that not only involved securities issued on ethereum, but marks the first time investment ratings giant DBRS Morningstar rated securities issued on a blockchain. While the rating itself is on a traditional paper debt security that closed on Friday, Morningstar cited faster access to data about the securities as a result of the increased transparency from using ethereum in its rating document, paving the way for a more pure class of crypto-assets native to the blockchain.”

Curator’s Note: California fast food franchiser, FatBurger, raised $40 million in debt from investors, issuing securities on the ethereum blockchain. Transactions will be effected by conventional means, and recorded on the ethereum blockchain as “digital representations” of ownership, with the issued blockchain security tokens an outside, parallel record that does not govern operation of transactions. Even though the blockchain token parallel does not govern, significantly it is being cited by DBRS Morningstar as beneficial in transparency for investors. This is the first time DBRS Morningstar has rated a security based on distributed ledger technology (even as a parallel system). Distributed ledger technology, by decentralizing and encrypting the storage of information via blockchain, insures the reliability of data, at increased speed and lower cost.

New York-based Cadence, the digital security advisor for the financing, will manage the ethereum blockchain token processes.  Cadence is backed by an impressive list of investors including Argo, Coinbase, Fantail Ventures, and several Chinese investors.

France’s Financial Markets Authority (AMF) has proposed that all of Europe adopt a regulatory “sandbox” to support the emerging security token industry

“The proposal is from Europe’s most reliably pro-blockchain financial regulators. AMF has consistently advocated a forward-thinking approach to blockchain and distributed ledger technology for years, approving initial coin offeringsdrafting blockchain bills and releasing experimental frameworks for crypto firms to regulate themselves. 

‘These frameworks were designed to frame centralized market infrastructures,’ AMF President Robert Ophèle said in a speech. He explained that ‘they are not suited to the decentralized nature of the blockchain environment” and therefore render many projects almost unprofitable…We are faced with a chicken and egg paradox. The space cannot develop under the current framework, but without documentation new frameworks cannot evolve either.’ ”

Curator’s Note: AMF this week proposed a regulatory “sandbox” to support the emerging security token industry.  The sandbox, or “Digital Lab” proposal calls for a three-year exemption period to provide data and feedback to assist regulators in understanding risks and innovation associated with decentralized blockchain infrastructures and security tokens in order to develop new, more flexible regulation. It remains to be seen how other continental financial regulators will react to AMF’s latest recommendation.

We have a self-imposed constraint of 3 news stories each week because we serve busy senior leaders in Fintech who need just enough information to get on with their job.

For context on Security Tokens please read the chapter on Security Tokens in our Blockchain Economy book and read articles tagged Security Tokens in our archives. 

You get 3 free articles on Daily Fintech. After that you will need to become a member for just US$143 a year (= $0.39 per day) and get all our fresh content and our archives and participate in our forum.

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Parametrics, alternate risk for outbreaks, and a Heartbeat in the Fog

It’s not often that a nexus of insurance/finance, and tech factors rises in prominence and promise, but seems the time is now.  Blockchain- parametric- captives- business interruption – AI/ML- coverage gaps- ILS- front and center!  Supply chain disruption due to collapse of integral parts of the pre-existing arrangements has rippled strongly through the global economy, and clever, innovative risk management and financing programs are now available for application, however from a previously under-utilized area of insurance.  
Patrick Kelahan is a CX, engineering & insurance consultant, working with Insurers, Attorneys & Owners in his …

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Wages-On-Demand startup Earnd Snapped Up By Greensill

Jessica Ellerm is a thought leader specializing in Small Business and the Gig Economy and is the CEO and Co-Founder of Zuper, a neowealth disruptor in Australia

Supply chain financing powerhouse Greensill, founded by Australian Lex Greensill, is making aggressive moves into the wages-on-demand space, purchasing Aussie fintech startup Earnd.

It’s not the first foray Greensill has made into the space. Last October it acquired FreeUp, a London based business with a similar offering to Earnd.

It’s a natural move for the business, which sees no difference between their core line of business – helping suppliers access early funds – and employees, who are effectively time and skill suppliers to their employers.

In just a short space of time, Earnd has built up a solid and steady base of reputable clients, including local Fintech Tyro, payroll platform Ascender and hotel group Adina.

On-demand payroll is a hot space. UK based Hastee landed $268 million in fresh funding in December, while Earnin, another VC favourite, has banked more than $190 million.

What is most novel about Earnin, is it allows customers to access up to $100 per day at zero cost. Instead of setting a fee for their service, Earnin asks users to tip what they think is fair.

Last March, the unconventional revenue generation approach landed the fintech in hot water, with reports that users who weren’t actively tipping were being subjected to credit restrictions. As a result, regulators launched an investigation, after being concerned the model was essentially a way to evade some of the tough laws that had been implemented to protect consumers from predatory payday lending.

Are wages-on-demand the payday lender ‘wolf in sheep’s clothing’? It’s too soon to say. While we could all do with our hard-earned money a little sooner, chances are many of us don’t truly understand the cost we pay by not being better budgeters. It’s arguable with every dollar that’s easier to access, our financial IQ drops a few points, making us more vulnerable to long term financial health issues. On the flip side, money in our accounts sooner, if invested and saved, is more money in our pocket in the long-term. Something makes me doubt that is how the majority of payroll-on-demand users are using these platforms.

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XBRL news for Week Ending Tuesday 10 March 2020

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Here is our pick of the 3 most important XBRL news stories.

One. XBRL Data Quality Checks Available in FASB US GAAP Financial Reporting Taxonomy

XBRL US announced today that the Financial Accounting Standards Board (FASB) has incorporated freely available validation rules into the 2020 release of the US GAAP Financial Reporting Taxonomy. The rules, developed by the XBRL US Data Quality Committee (DQC) are used by public company filers to identify and resolve errors in their XBRL financials prior to submission to the Securities and Exchange Commission (SEC). The DQC has been building rules since 2015 and has introduced 10 rulesets covering multiple categories of errors, such as signage (negative or positive) problems, errors in the use of dates, calculation mistakes, and the inappropriate use of axes when creating financial tables. In 2018, the DQC began introducing rules based on the IFRS Taxonomy, to support foreign private issuers that rely on that taxonomy.”

Curator’s note: Although low quality submissions will be disciplined by the market, because they are bad for Investor Relations,  tech support to catch errors is critical. 

Two. XBRL in Financial Services: Where Does the ESEF Fit?

“listed financial institutions also need to comply with the new European Single Electronic Format (ESEF), which is mandated by the European Securities and Markets Authority (ESMA).”

Curator’s note: Regulators will continue to add complexity. Politicians seldom think of what it costs to comply. Although this post focusses on the devil in the details, the big picture is that compliance with new reporting rules will be a lot easier if your systems are based on XBRL. Regulators should be forced to go on a training course on XBRL.

Three. Pakistan’s first ever centralized repository for life insurance launched

“The Centralized Repository will enable electronic storage of life insurance and family takaful policies and serve as central point for critical policyholder related information.”

Curator’s note: Insurance regulators like centralised repositories encoded in XBRL as it makes it easier to spot issues of concern. It is interesting that this innovation is coming from an Islamic country For more on why Takaful (Islamic Insurance) matters, please read this post 

For the first curated news on XBRL, we set the news recency to one month. From next week we will go to one week.

We have a self-imposed constraint of 3 news stories each week because we serve busy senior leaders in Fintech who need just enough information to get on with their job.

For context on XBRL please read this introduction to our XBRL Week in 2016 and read articles tagged XBRL in our archives. 

You get 3 free articles on Daily Fintech. After that you will need to become a member for just US$143 a year (= $0.39 per day) and get all our fresh content and our archives and participate in our forum.

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COVID-19 is a catalyst for business innovation

teleport

A Teleport channel

Psychological Safety and Emotional Intelligence are hot topics these days in the corporate world that feels the pain of COVID-19 and has chosen to call it a `Black Swan`. This post today is inspired by Duena Blomstrom, CEO of PeopleNotTech and EmotionalBanking.

The company has developed software that aims to increase team productivity by monitoring people and interactions and coaching them. Think of an app that increases each person`s EQ – – the Emotional Intelligence Trainer – using data and AI and helps managers in leading teams.

Just yesterday Duena shared her thoughts on Why COVID-19 Is Good For The Future Of Work challenging our ingrained beliefs of the necessity of meeting in-person, shaking hands and all the rest of the rituals, to do business.

Duena is suggesting the rise of a new soft skill that entails a different EQ to be able to do business online. The possibility that this becomes the new normal, is becoming real.

We all agree that Culture eats software. COVID-19 is a virus that is triggering a cultural change at work.

Every shock is an opportunity to re-think.

Efi Pylarinou is the founder of Efi Pylarinou Advisory and a Fintech/Blockchain influencer – No.3 influencer in the finance sector by Refinitiv Global Social Media 2019.

You get 3 free articles on Daily Fintech. Get all our fresh content and our archives and participate in our forum, by becoming a member for just US$143 a year.

The Global financial crisis led to re-thinking payments, money, and broadening the scope of value that can be transferred.

COVID-19 may lead to re-thinking Work and business.

I don’t see this `External shock` as one that will take the Gig economy to another level.

I see it as a factor that may well pop the bubble of the growth of co-Working spaces.

It may also shift the focus of innovation suddenly, to finally create the communication standard that replaces e-mail which in our times falls short of conveying rich information.

I am not thinking about the improvement of the existing tools – for example, video conferencing tools or project management tools.

I am suggesting a combination of Virtual Reality and Artificial intelligence that finally conveys on the web even richer information than what our limited perception can capture with in-person meetings.

We are actually building such tools (they are currently scattered and not yet scalable).

We have enterprise VR meeting tools – like Atom from the NuSpace platform (compatible with Oculus and Hololens) or MeetingVR, The Wild.

We have neuroscience startups focused on brain-computer interfacing – for example, Neurolink, Emotiv, Kernel-.

We have VR and AR startups working on 3D holographic images – for example, Spatial that transforms your space through Teleporting.

The future of Work is here and it is COVID-19 will accelerate the convergence of digital and physical.

This disruption in the way we work will soon affect real estate as there will be a significant drop in the demand of office space.

By the end of this year, there will be a significant increase in businesses that are piloting projects with select business groups testing by working remotely with these technologies. Sales teams will be trained to start acquiring the new soft skills that Duena talks about as we will be in transition.

Businesses will suddenly recognize the huge savings of this cultural shift and will jump start the transition as such practices are accepted as professional and become slowly the new standard. This will have a disruptive ripple effect on many sectors of the economy.

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Announcing the Daily Fintech curated news on XBRL

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On 9th January we announced our new curated news service on the subject of Security Tokens.

On 21 February we introduced Sheldon Freedman as our security token news curator

Tomorrow’s post will be the first in our second niche domain subject – XBRL.

The format will be the same. We will choose the 3 most important news stories during the week . Daily Fintech believes in constraints, because our mission is high signal to noise ratio. We do not want to overwhelm you by aggregating every news story (which is technically simple to do). We serve busy senior leaders in Fintech who need just enough information to get on with their job.

For each story we offer a) an extract from the news b) a link to the news report and c) a brief commentary on why our News Curator considered it important. 

In our first curated news report on XBRL we take a monthly view. The following week on 17 March we will take a weekly view. Then we will use the Daily Fintech News Quality Analysis Methodology to define the maturity of XBRL as a niche domain and decide whether to report weekly, monthly or bi-weekly.

For context on XBRL please read this introduction to our XBRL Week in 2016 and read articles tagged XBRL in our archives. 

You get 3 free articles on Daily Fintech. After that you will need to become a member for just US$143 a year (= $0.39 per day) and get all our fresh content and our archives and participate in our forum.

The post Announcing the Daily Fintech curated news on XBRL appeared first on Daily Fintech.

Who pays the crypto media piper? 

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Crypto media is the most wild west part of the media landscape. As a media owner who strives for clarity on two key fronts – transparency on who owns the business and strict separation of church and state (editorial and advertising) – I decided to take a look at the nearly 200 crypto blogs tracked by Feedspot.

That is not counting all the Crypto YouTubers and other content in different venues and formats. Talk about Cambrian Explosion!

This is not your father’s 4th estate. Clarity on who pays the piper is breaking down for the simple reason that the advertising driven revenue model has been imploding. Some media owners cut corners in order to survive.

There are so many questions, but I wanted to know one simple thing – who owns the crypto media?

As I am running a business and don’t have a lot of time to do free investigative journalism I restricted my investigation to the top 10 and a bit of lite analysis up to number 50 on the list. I am assuming, maybe wrongly, that below the top 50 will be mostly fly by night operations doing some variant of scraping/aggregation funded by low cost advertising.

For the Top 10, I looked on their site for About Us and used Google to search for “who owns xyz”. Sure, I could go further in my investigation, but it should not be so hard to find this information!

Top 10:

  • Crypto players that are disclosed = 3
  • Undisclosed owners = 5 (some speculation but no hard facts)
  • Reddit/CondeNast = 1
  • Individual Disclosed = 1

That is pretty bad. For crypto players that are disclosed we just have to trust that the players in the crypto business who own the media business try to maintain separation of church and state (editorial and advertising).

Undisclosed owners as 50% of top 10 is pretty bad!

Where are the reader’s yachts?

I changed one word from the old Wall Street line about where are the customer’s yachts (about how brokers and exchanges, like casinos, always win even when the punters lose).

Maybe what matters more than who owns crypto media is, who pays the bills?  In the crypto world that tends to mean advertisers who are brokers and exchanges. They have the money and the motivation to advertise. The product that media owners sell is the reader who thinks they can make money trading (when most don’t). Call them muppets in Wall Street lingo. Call them punters in Casino lingo. Both are honest. Crypto media calls them community – which sounds a bit fluffy! 

Many brokers and exchanges offer leverage. High leverage + high volatility – what can possibly go wrong!

“Advertising signs that con you

Into thinking you’re the one

That can do what’s never been done

That can win what’s never been won”

Bob Dylan 

About Daily Fintech

About Us is prominently displayed at the top of our site. For reader convenience we have copied this below:

Daily Fintech is owned by Bernard Lunn, who wrote the first post on 29 June 2014 and has funded the business since inception. He currently serves as both CEO and Editor and occasional content creator.

Daily Fintech is based on three core principles

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Our work has been recognised with the silver medal in this Feedspot ranking of 100 Fintech blogs

Insight is valuable

The value of online content today is driven by how many clicks that content receives, because the Internet to date has mostly been funded by advertising. Daily Fintech was created to challenge that assumption by asking what is more valuable:

A. 10,000 people each of whom are leaders in the global Fintech market who influence how $ billions of value are created?

B. 1,000,000 (1m) people with no money or influence?

The currency of the web (advertising) says B is 100x more valuable than A. That is clearly broken. We all know that A is more valuable. That insight led us to build a media business that sits at the apex of the knowledge market by being insight driven not news or data driven. We track news and data as a source of insight but we do not focus on delivering either news or data. 

Everything we do is designed to protect the time of the small number of people who influence how $ billions of value are created, because time is the one thing we cannot manufacture more of. That respect for your attention drives how we write and what we write about. It also explains why we don’t employ any of the normal tricks to grab your attention – all of them are as annoying as somebody at a party using a megaphone to talk to you. Our respect for your time is why our platform is highly curated. In order to avoid wasting your time with one off posts with lots of overlap, our Experts write regularly (once per week) within a specific domain.

That insight is made available to you for US$143 a year (which equates to $2.75 per week or $0.39 per day). So your daily insight costs you less than $0.40 and could be worth $ millions. $2.75 buys you a medium size coffee (maybe), or a weekly cost of a subscription to the no. 2 global Fintech blog – caffeine for the mind.

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Separation of church and state (editorial and advertising) is old-fashioned, but we believe it is still important. You should know if the person you wrote what you are reading has a hidden agenda to sell you something. All our content creators follow a strict disclosure policy.

We know who pays our bills – you the reader. That insight is made available to you for US$143 a year (which equates to $2.75 per week or $0.39 per day). So your daily insight costs you less than $0.40 and could be worth $ millions. $2.75 buys you a medium size coffee (maybe), or a weekly cost of a subscription to the no. 2 global Fintech blog – caffeine for the mind.

Invite only experts with rigorous editorial process

 To achieve the mission of delivering unique insight about Fintech each and every day, we have assembled a team of experts who have “walked a mile in your shoes”. Our experts add value because we bring the perspective of our work as entrepreneurs, bankers, senior executives, technologists, investors and consultants. Our insights are created by people like you who also like to write.

We invite experts who really understand the complexities of finance, technology (including crypto). Our view is that it is easier to help an expert in a market learn a few basic journalism techniques than to expect journalists to be experts in complex fast-changing markets.

We do not simply invite them and then let them post anything. Daily Fintech content creators go through a rigorous onboarding process and have to comply with strict editorial principles.

Daily Fintech content creators see this as content marketing with a visibility payoff that is greater than the per article fee that journalists receive today.

Specific to Crypto/Blockchain, Daily Fintech makes no attempt to preach to the choir. We are not writing for people who are already deep into Crypto/Blockchain. Nor are we writing for traders.  Our mission is to make Crypto/Blockchain accessible to mainstream business people. That is not the mythic technophobic grandparent; our readers are smart savvy business people who know the importance of technology, but they are not “in the weeds” of Crypto/Blockchain.

That insight is made available to you for US$143 a year (which equates to $2.75 per week or $0.39 per day). So your daily insight costs you less than $0.40 and could be worth $ millions. $2.75 buys you a medium size coffee (maybe), or a weekly cost of a subscription to the no. 2 global Fintech blog – caffeine for the mind.

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What if Satoshi was a woman?

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Satoshi Nakamoto is considered a masculine name in Japan. This is the pseudonym used by the mysterious creator of Bitcoin. Many of the popular figures in today’s crypto world are also men. There’s no surprise that there is a male-centric perception of the the blockchain revolution. But all we know about Satoshi, who has never been identified, is that he created Bitcoin. Is Satoshi black or white? Is he American, European, Asian or an alien? Is Satoshi male or female? 

Ilias Louis Hatzis is the Founder at Mercato Blockchain Corporation AG and a weekly columnist at DailyFintech.com.

Throughout human history, cultures around the world have celebrated women. International Women’s Day is a day to celebrate gender equality and women’s empowerment worldwide. It’s a day to recognize the extraordinary acts of women and to stand together.

While the numbers of women are relatively small in the crypto industry, Bitcoin and blockchain have a very feminine approach. Women approach solutions to problems very differently than men. Women tend to be more collaborative, inclusive and team-oriented, All of these characteristics are fundamental elements of blockchain and cryptocurrencies and are particularly effective, in today’s less-hierarchical, fast-paced, innovation-driven world.

But just like the rest of the tech sector, blockchain and cryptocurrency have been predominantly dominated by men. Women have struggled to compete in crypto’s male-dominated culture, protected by cliques like the “blockchain bros”.

Cryptocurrency combines finance and tech, two male-dominated sectors. According to the World Economic Forum, only 16% of female students graduate from science and technology subjects compared to 47% of men. Gender disparity predates blockchain. It has been prevalent in the STEM fields (science, technology, engineering, math) for decades.

So far, women have played a minor role in shaping cryptocurrency and blockchain. According to a survey by Quartz, only 8.5% of venture-backed cryptocurrency startups founded between 2012 and 2018, were founded or co-founded by a woman. In 2017, investors in Bitcoin witnessed wealth creation of approximately $85 billion, only $5 billion, or a mere 5.88%, of this was obtained by women.

Last year on its blog, Binance posted some myths about blockchain and women. I will elaborate on couple of points.

#1: Women are not interested in blockchain and cryptocurrency
The numbers have been changing. In 2018, female representation in the Bitcoin community stood at just 5% in 2018. Today it’s at 12.8%, according to recent data from CoinDance. Also a report published late in 2019, by Bitcoin fund Grayscale Investments, showed that 43% of investors interested in Bitcoin are women.

#2: Women are not skilled in investing in crypto
Studies suggest men are predisposed towards bubbles in a way that women are not. The most comprehensive study on gender and the stock market, shows that women who invest their own money or on behalf of an organization, take a more cautious approach but tend to outperform their male peers in the long run.

#3: Women cannot contribute to blockchain development
Most of us believe that men invented computers and the internet. However, women have played and important role with pioneers such as Ada Lovelace and Grace Hopper, the world’s first computer programmer. Without the input of remarkable Women in Crypto, we may not have made the breakthroughs that have paved the current landscape.

Gender inequality deprives societies from wealth. The power of blockchain has the potential to reshape the financial world, but also affect the wider social context such as promoting gender equality. Cryptocurrency and blockchain can boost women’s economic opportunities and encourage engagement.

Crypto needs more women in order to create the new financial technology that works for everyone. Now if Satoshi was a woman, I couldn’t think of a better message to empower young women to enter the computer science world, and have a huge impact in making the world a much better place.

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This Week in Fintech ending 6 March 2020

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This weekly summary from our 5 experts, brings you insights based on their experience as investors, entrepreneurs & executives.

Ilias Hatzis started his first company, an internet search engine, during the dot-com era & now focusses on crypto.

Efi Pylarinou worked for top tier Wall Street firms and is now a top global Fintech influencer.

Jessica Ellerm is CEO of Zuper Superannuation & previously worked for a top Fintech startup, Tyro.

Patrick Kelahan is a CX, engineering & insurance professional, working with Insurers, Attorneys & Owners.

Bernard Lunn is the CEO of Daily Fintech and author of The Blockchain Economy.

If you want to continue receiving This Week in Fintech, you can either become a paying Member for $143 per year (and receive all our content in addition to this weekly summary) by clicking here.  If you just want to receive This Week in Fintech for free, you will need to fill in this form. Or fill in the same sign up form at the bottom of this post.

Your Editor is Bernard Lunn. He is also the CEO of Daily Fintech and author of The Blockchain Economy.

Monday Ilias Hatzis @iliashatzis our Greece-based crypto entrepreneur (Founder & CEO at Mercato Blockchain Corporation AG and Weekly Columnist at Daily Fintech) wrote Why Bitcoin is Eating the Software World

Back in 2011, Marc Andreessen famously wrote “Why Software is Eating the World”. Today the idea that every company needs to become a software company has seeped into every aspect of our lives, changing the way we live, eat, interact, and commute. We shop on Amazon, we ride Uber to get around, we order food with efood, we find places to stay with Airbnb and we search on Google when we have a question. Few of us could have imagined the impact software would have on our day-to-day lives. Along with this innovation, we’ve seen some side effects. Some of the biggest companies own almost nothing and employ almost nobody.

Editor note: “just like software continues to eat the world, blockchain and decentralization could end up eating software.” Read this post to understand why and how.

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Tuesday Efi Pylarinou @efipm our Swiss-based Fintech Adviser,  founder of Efi Pylarinou Advisory and a Fintech/Blockchain influencer – No.3 influencer in the finance sector by Refinitiv Global Social Media 2019 wrote The $5 trillion ETF market has been tested

There is nothing like a market induced shake-up. This past week reminded me of all the trading floor jargon of my Salomon Brothers days on the 37th floor of 7WTC.

`Bleeding`

`Catching falling knives`

`Close the book`

It also reminded me of the Betterment/Brexit incident in July 2016! When the unexpected election results hit the market, ETFs became illiquid and mispriced. Betterment suspended trading for retail on that Friday of the Brexit results for almost 3 hours. Read more details here.

ETFs are the bread and butter of all robo-advisors. Both standalone fintechs and incumbents use these efficient wrappers to create their portfolios.

Editor note: Efi analyses how ETFs performed in last week’s Coronavirus induced meltdown and how it impacts the overall Fintech market

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Wednesday Jessica Ellerm @jessicaellerm, our Australia-based Fintech entrepreneur and thought leader specializing in Small Business and the Gig Economy & CEO/Co-Founder of Zuper, a new superannuation startup in Australia wrote Loan Originations Spike For Listed Australian Online Lender Prospa

Last year we covered the successful IPO of local fintech success story Prospa, an early player in the online lending space in Australia. The company debuted on the Australian Stock Exchange in June of 2019, taking off at $4.50, a significant uplift on the IPO offer price of $3.78.  As often happens in the early stages of a company’s public life, the share price has had a bumpy ride since listing, and currently trades around the AU $1.80 mark.

Editor note: With so much uncertainty due to Coronavirus and climate change, it is natural for originations to spike. What Prospa and other Fintech lenders need to show us returns to lenders over the economic cycle.

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Thursday Patrick Kelahan @insuranceeleph1, our US based Insurtech expert (a CX, engineering & insurance professional, working with Insurers, Attorneys & Owners who also serves the insurance and Fintech world as the ‘Insurance Elephant’) wrote COVID 19 – indirect effect coverage gap on steroids

Unlike a typhoon or hurricane, the current catastrophe cannot be seen, just its effects.  The novel coronavirus (COVID 19) is now and will be causing personal, business, and government disruption and economic loss.  You can’t see the virus, has relatively small direct effects (120,000 persons contracting the virus of some hundreds of millions exposed), but it’s secondary impact ripples widely.  It’s economic impact will eclipse that of natural disasters of the past several years.  Analogous to the concept of velocity of money there is a ‘velocity of consumption’ that has economic loss effects that are not subject to indemnification. 

Editor note: As coronavirus fear grips people worldwide, some take comfort in insurance. This post is for those people who have to think about how to insure a pandemic.

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Friday Bernard Lunn the CEO of Daily Fintech and author of The Blockchain Economy wrote: Security Token news for Week ending 6 March 2020

Editor note: This weekly snapshot is the news that matters for busy senior people in the Security Token market.

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To continue receiving ‘This Week in Fintech’, the weekly recap of our articles, you will need to fill this form to give us consent to send this to you. Please note that Daily Fintech requires your organizational email address (e.g. corporate, educational or government) and your LinkedIn URL. This information is required for subscribers who want ‘This Week in Fintech’ for free. If you prefer to not provide this information, you can still receive all our content by becoming a paying member.

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Security Token news for Week Ending Friday 6 March 2020

Security Token news for Week Ending Friday 28 February 2020

It was a slow news week in security tokens. So we start with a downbeat analysis from Asia. Why is the growth engine of the world not excited by security token offerings?

“The lack of interest is particularly striking in Thailand and Taiwan, two areas that were among the first to enact STO regulations to encourage the investment.”

Two issues stand out. One is the cost to do an STO is high. The second is that developing markets such as Thailand and Taiwan don’t yet have the investor liquidity of major hubs such as New York and London.

For our second story we went with firms investing for the future specifically in those developing markets.

“The Stellar Development Foundation (SDF) announced Wednesday it has invested $715,000 worth of lumens (XLM) tokens in DSTOQ, a security token platform that provides traders with access to global markets from their smartphones.”

However note that Stellar was investing their own currency not a “real” currency like USD. 

For our third story we went with a savvy entrepreneur who made a quick exit from one venture and then reinvested to go “all in” on the Security Token market.

“Meanwhile, Konings has already moved on to his next project, Security Token Group, of which he is a founding partner. Konings says the group has already raised over $1 million dollars in financing, and employs a small team of consultants, developers, and fund managers across its subsidiaries. The company is also on track to break $1 million in revenue this year.He predicts 2020 will be “the year of the security token.”

In short, this week felt more like 2018 with a lot more talk about the future than big things happening today. 

We have a self-imposed constraint of 3 news stories each week because we serve busy senior leaders in Fintech who need just enough information to get on with their job.

For context on Security Tokens please read the chapter on Security Tokens in our Blockchain Economy book and read articles tagged Security Tokens in our archives. 

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