Security tokens are most often seen as a brand new fundraising tool combining the advantages of traditional IPO, and ICO, previously dominant on the crypto markets. For us, it is much more than that. Tokenization provides the basis for a whole new era of financial markets: digitized, transparent, frictionless and cost-efficient. Inspired and driven by the idea of liabilities represented in digital form, Daonomic has created the ultimate tool for tokenization of practically any real world asset or service. Being focused on the connection of tokens with the real world and aiming at boosting the creation of a truly digital economy, at its core, Daonomic enables the issuance of generic security tokens on its platform - in several clicks and for free.
2019 has brought major advancements to the tokenization industry: in only the first months of this year, we have already seen the largest real estate tokenization deal in history ($260 million worth of real estate assets, piloted by Inveniam Capital), state-backed VC in Pennsylvania tokenizing an investment fund, and banks and corporations tokenizing their equity or debt in different forms.
The boost is happening gradually, incentivized by a number of factors:
- growing interest in tokenized securities from institutional investors: for instance, at the end of March 2019 Abu Dhabi-based Blue Rock Capital and Blue Stone Capital have signed intentions of $10 million each to take part in Sumner Group's $100M security token offering.
- major governments taking steps towards blockchain adoption at the regulatory level: including Luxembourg’s Blockchain Framework Bill, and German regulators approving the first STO for retail investors.
- financial giants and banks expressing active interest in blockchain-based instruments: to name but a few, JP Morgan has launched its stablecoin for the instantaneous transfer of payments, and six international banks have reportedly signed letters of intent to issue their own national fiat currency-backed stablecoins.
The industry is still far from mainstream, but it has come a long way since the rise of token offerings in 2017: from vertiginous fraud levels and thousands of ‘moon and lambos’ projects to operating and profitable businesses tokenizing their real assets with a vision of the more efficient digital economy.
A long road is still ahead of us as an industry: in order to achieve mass adoption of blockchain technology by capital markets with the aim of making them more transparent, secure and efficient, we need to overcome several major roadblocks:
- slow recognition at the governmental institutional level;
- lack of high-quality real businesses doing offerings of their tokenized assets;
- scarcity of open and reliable sources of information
- limited availability of convenient and easy-to-use instruments that can seamlessly migrate traditional assets on blockchain.
We see this as an exciting challenge that we can contribute to solving together with our partners - leading experts in technology and financial markets. That’s why we have leveraged our experience of over 10 years in building financial products and the strongest expertise in development, to build a universal product for asset tokenization - Daonomic.
Everything you need to launch your offering: fast, cost-effective and secure
Daonomic was created with the assumption that the tokenization process has to be simple, cost-efficient and easily customized, requiring minimum coding skills from the issuer himself.
Daonomic is designed as your universal partner in asset tokenization, providing you with an opportunity to tokenize an asset fast and for free, as well as the ability to serve as a one-stop shop for all related services: from reliable legal and KYC/AML to security and audit providers.
We give the issuer an opportunity to choose from two options according to their needs:
- Self-service tokenization. Daonomic enables the issuer to tokenize an asset in several clicks via token launcher. If your offering is fully structured and you already have all necessary legal support, Daonomic can be used as a reliable token issuance tool that seamlessly integrates into your process. You need no external help or coding skills to go through all clearly defined steps, setting up your token parameters, sales mechanics and other details - and it’s absolutely free.
- If the issuer needs specific token parameters and features, the Daonomic team can step in at any stage of the process to customize it and recommend certified providers.
- Turnkey asset tokenization. If you are looking into raising funds for your project via a security token offering, but don’t know where to start, Daonomic is here to offer a customized “one stop shop” solution. Our team will guide you through the whole process. From choosing a jurisdiction, to onboarding investors and creating a customized investor dashboard.
How it works
The core of our technical solution lies in Generic Security Framework.
When we first started to explore tokenization as an exciting new chapter in financial markets, we did not find the perfect fit for all compliance and governance needs among existing protocols for security tokens. We saw the low level of tokenization service providers, generally expensive and complicated, as well as the extremely low level of the majority of fundraising projects.
That’s why we have built the Generic Security Framework - a protocol for life cycle management of securities on blockchain that ensures an easy, transparent, and secure governance and dividend distribution mechanism.
Read more about the protocol in our next article.
Building the ecosystem for asset tokenization
We’re partnering up with leading players on the market to offer a compliant and secure full lifecycle solution, for all the steps of the tokenization process.
The Daonomic marketplace will enable the issuers to choose from a variety of legal, KYC/AML, custody, and other providers in a variety of jurisdictions, according to the project’s needs.
Mature projects for a mature industry
Daonomic strongly believes that in order to achieve mass adoption, the tokenization industry needs to see more sophisticated projects and real businesses on the market, offering high-quality investor opportunities.
This is why core quality principles underlie our whole work process, including the decision-making on projects we choose to work with. Daonomic gives priority to infrastructure projects and projects with strong tech solutions, generating cash flow and consumer-oriented.
About the team
The Daonomic team is lead by a blockchain entrepreneur, Bitcoin Foundation member and Certified Bitcoin Professional Max Bozhko, who has been in blockchain and crypto space since 2013, and has been developing tokenization infrastructure products since 2017.
All members of our core team have been developing their own software products for over 10 years. We are especially proud of our development department, which consists of winners of international coding olympiades, and alumni of top tech universities: MSU, MIPT, HSE and Yandex Data School.
We allocate a lot of time and effort to research new technologies and opportunities, exploring new levels of efficiency and integration into software products - and connecting technology with the real world.