What do we call assets, debt and revenue share utilizing blockchain?
This is an interesting question as the market is changing so rapidly, so do the buzz words - the following terms are generally interchangeable: Tokenization, Digital Securities Offerings (DSO), Security Token Offering (STO), Digital/Digitized Securities, finally Digital Assets, which is the US SEC’s terminology, so good enough for us!
A digital asset is a tokenized asset or debt placed on a blockchain environment and is a novel means to utilize existing equity, either to take money off the table, or to pursue new opportunities. All while being able to place the offering with a new investor class that is not normally eligible to participate in these offerings. In return the investor has almost instant liquidity (once restricted trading ends) and ideally trades on a national exchange or Alternative Trading System (ATS). No longer is an investor required to hold an illiquid asset for five to ten years prior to a liquidity event occurring. Digital Assets are fully regulated by the jurisdictions that their offer is being placed.
Bespoke Digital Assets are best suited for well established companies with a strong track record and considering an offering starting at $25M USD and up.
Turn-Key Digital Assets may be appropriate for a late-stage startup that is enjoying considerable traction, with a veteran founding team, seeking to raise $5M USD and up.