【Blockchain in Korea】Securitize Jacqueline Kwok : New changes in STO market
【Blockchain in Korea】
32days ago
1726

The full text is a total of 1539 words, expected to read 4 minutes.

Editors note: Coinin is the Korean blockchain media headquartered in Seoul, South Korea, it relies on industry head resources and community advantages to form a huge influence on the media. It is known as an upgraded version of the blockchain field 36Kr.

 

Coinin recently launched the "Blockchain in Korea" series in South Korea, visiting the top blockchain practitioners in South Korea and promoting exchanges and cooperation between China and South Korea. In the new phase of "Blockchain in Korea", Coinin invited Jacqueline Kwok who is the Asia BD Director of Securitize to talk about "What changes have occurred in the STO market?".

 

Guest introduction

 

The 40th phase of the "Blockchain in Korea", Coinin invited Jacqueline Kwok, Asia BD Director of Securitize to talk about "What changes have occurred in the STO market?".

 

Jacqueline Kwok:

Jacqueline (JK) spent the bulk of her career in private equity with a focus on fundraising and growth equity investments within TMT, manufacturing, and consumer industries in China. JK managed international market expansion for a Rocket Internet-backed startup, which took her from Berlin to Chicago. After investing in crypto assets during her tenure in VMWare's Networking and Security team, she has focused all her efforts within the blockchain/crypto space working for a custody startup. She has an MBA from INSEAD, and started her career at the KPMG Hong Kong Office.

 

Dialogue

 

Allen: You spent the bulk of your career in private equity with a focus on fundraising and growth equity investments within TMT, manufacturing, and consumer industries. How did you connect with the blockchain industry? What had made you join the blockchain industry?

Jacqueline Kwok: The reasons why I connected with the blockchain industry are as follows:

Cross-international business cooperation is very important to me personally. When I was a child, I moved from the United States to Hong Kong and moved to Beijing. Then I went to the United States to study undergraduate degree and worked at one of the four major accounting offices in Hong Kong. I worked for private equity investment in Shanghai, went to France and Singapore for a master's degree, and then worked for a German American technology company. Because I have been running around the world since I was a child, I believe that blockchain technology is the best tool if the world wants to cooperate to promote social upgrading in all countries. When researching the blockchain industry, I found that many outstanding leaders have joined the industry, so I decided to fully engaged in the blockchain industry.

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Allen: Please introduce the Securitize which deliver trusted global solutions for creating compliant digital securities. How is the company’s current operation status?

Jacqueline Kwok: Securitize was founded in November 2017, it digitally tokenize the LP interest of Spice VC through blockchain and smart contract technology. The original intention of Spice VC is to pay back the return of exit to the investor (LP) early and provide an exit channel for the LP. Through this development process, Spice VC decided to spin off the technology and that is why Securitize established.

Our digital securities technology issuance platform already includes continuous KYC/AML functions, investor specifications, and local securities regulatory updates, allowing fundraisers and investors trade on the blockchain. Our technology helped investors onboard in more than 40 countries.

Securitize has more than 30 customers and seven digital security tokens that have been released into the blockchain, four of which have already started trading on the secondary market. Securitize raised about $13 million on the A Round, the investment was led by Blockchain Capital, Coinbase Ventures, Ripple’s XPRING fund, OKCoin and etc.

 

Allen: Could you introduce the Securitize’s DS Protocol Ecosystem in detail? What are steps to issue digital security on Securitize? What is your company's competitive advantage over other STO platforms that can issue securities tokens?

Jacqueline Kwok: The Securitize issuance platform has three parts, and the DS protocol is one of them.

The first is the investor onboarding user interface and the issuer admin portal.

The second is the Digital Securities Protocol, a set of smart contracts that manage digital securities tokens. Existing technology products are on the Ethereum, we also develop our user platform and DS protocol on Tezos and Hyperledger.

The third is the Ready for Exchange API, which allows our regulatory protocol DS Protocol to be implemented in other companies. For example, if I bought a Spice VC token on the OpenFinance secondary market exchange, Spice VC needs to know who are the new shareholders and whether the investors are compliant. Information updates can be found on our Issuer Admin Portal.

Securitize's competitive advantage is our truly successful ST issuance and secondary market docking. In addition, we are connected to the exchange's products. Further more, our regulatory agreement will be continuous updated, and KYC/AML needs to be updated regularly like a bank.

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Allen: The STO process can be condensed into compliance, fundraising and circulation. What do you think is the core of STO? What is the most important function and significance of STO?

Jacqueline Kwok: The core of STO is to automate the process of compliance, fundraising, and circulation, and to use smart contract technology to create new financial products. For example, one of our clients is tokenized their future earnings so that the company can send a bonus to the token owners every day.

 

Allen: Do you agree that those companies have more than $10 million in annual revenues, high growth, bondholders want better liquidity, tend to issue negotiable assets and companies with global operations are suitable for STO? What challenges does the current bear market pose for STO issuance? How do you think these risks should be addressed?

Jacqueline Kwok: In the end, it depends on the attractiveness of assets/equity, and those attractive projects will naturally attract investors, whether you are STO or not. At present, the impact of the bear market on STO is that people who understand this blockchain technology have lost their digital wealth because of the crypto market price in the second half of 2018.

Therefore, we must educate traditional investors on how to understand and accept this technology. The challenge is that the digital securities industry is in the incubation phase and will take some time to mature like other new technology.

It will take some time for capital market investors to have a deeper understanding of this technology. The risk lies in STO companies, whether it is a issuance platform, an investment bank, or a secondary market trading platform, they need enough runway to resist the bear market. So that is why Securitize raised money from traditional VCs because startups need strategic investors to help them grow.

 

Allen: What changes have occurred in the STO market in 2019 compared to the past in your opinion? How do you think is the future direction of STO?

Jacqueline Kwok: The STO industry has just started in 2019.

The STO ecosystem has five parts.

1. Issuer (eg:Real estate company, general operating company, etc.)

2. Lawyer (need someone to write a legally binding fundraising document offering memorandum)

3. Investment bank or brokerage holding a securities license

4. Distribution platform (Securitize)

5. Secondary market trading platform (SharesPost, OpenFinance)

STO will mature the ecosystem and find several high-quality issuers to make several successful cases in the future.

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Allen: Cecilia Skingsley, deputy governor of the Swedish central bank, said the central bank is more than 50% possibility of issuing its digital currency e-krona in the next decade. He believes that one of the main motivations for issuing CBDC is that the public must be convinced that this is what they want to hold. How do you consider this opinion?

Jacqueline Kwok: We are very concerned about this matter but there are not many government agencies that actually implementing this and there is no substantial progress. So we are still waiting.

 

Allen: What is the latest activities and future plan of Securitize? In what ways does Securitize hope to cooperate with projects or institutions in China and South Korea?

Jacqueline Kwok: Securitize will continue to set up the ecosystem of digital securities and educate the market. Although STO cannot be legally sold to Korean or Chinese, as a software company, Securitize hopes to use our technology to support overseas capital invest in Chinese and Korean assets. It should be proceeded after the structure details are designed by a lawyer.

 

Allen: As a well-known person of the American blockchain, you may know a lot of outstanding practitioners in the blockchain industry. "Blockchain in Korea" interview program is launched by [Coinin], is dedicated to exploring high-quality blockchian projects and practitioners. Could you recommend three honored guests to our program?

Jacqueline Kwok: I recommend the SharesPost which is a good company and also our partner.

 

Q&A Session

 

Q1: Recently, platform tokens price are rising with IEO. How do you see the trend of platform tokens?

Jacqueline Kwok: The bear market has caused the exchange traffic drop sharply. It is a very clever way for the exchange to increase the volume of transactions through the IEO.

 

This article is reproduced only, does not constitute an investment opinion

-END-

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