❌ ⛓ tZERO needs zero blockchains
tZERO is working smarter not harder!
The Security Token Market's first-of-its-kind Web3-enabled crowdfund on the Avalanche blockchain continues to trek on! 🔺
In fact, 68 people from 10 different countries and 4 continents have invested!
Gooood morning, Rainmakers! ☀️
As always, I have two captivating topics for you to dive into:
1️⃣ 🔛 MERJ is converging DeFi and TradFi: MERJ just announced the listing of Tesla public stock on its exchange! Will it be tokenized?
2️⃣ ❌ ⛓ tZERO needs zero blockchains: tZERO has a patent for upgradeable security tokens. What does this even mean?
Without further ado, it's time to…
Get liquid 💧
🔛 MERJ is converging DeFi and TradFi
There are two things that I love about the Seychelles, its beautiful beaches and the HQ of MERJ securities exchange, of course!
MERJ is a fully licensed securities exchange that has the same regulatory status as the top exchanges around the world including the NYSE.
Currently, this happens to be the only exchange in the world with this regulatory status trading security tokens!
They are adding to their arsenal and adding Tesla stock as an investable asset on their exchange.
They don't plan to stop there as they also announced adding MSFT, GOOG, AAPL, and AMZN.
MERJ trades 20 hours a day, so it will be interesting if there are any arbitrage opportunities.
It's also important to add that these are not like tokenized stocks, which simply act as a mirrored/digital derivative of the tracked security.
These securities entitle holders to the full economic rights of the underlying assets, including any dividend distributions.
Congratulations to the MERJ team!
We are excited for your exchange to bring more opportunities to your investors!
❌ ⛓ tZERO needs zero blockchains
Okay, it's definitely an exaggerated statement that tZERO doesn't need a blockchain, but can you blame me?
I've been trying to spice up finance for the last 72 weeks straight!
But, yes, back to the topic.
Essentially, in very James Bond form, a tZERO rep subtly tweeted this:
Upgradable Security Token 🛠🪚 pimg-fpiw.uspto.gov/fdd/59/101/114…
— Solomon Tesfaye (@SolomonTesfaye_)
Aug 10, 2022
Naturally, we had to dive in and see what it was all about.
Now, I am no patent lawyer, but it appears to me that tZERO has a patent for an "Upgradeable security token."
If you are, by all mines take a gander at the patent!
In layman's terms, instead of data being coded into the smart contract, the smart contract references a feed of data from an external source.
Let me give you an example:
We all know that the $TZROP security token is traded on the tZERO Markets ATS.
Let's say one day the country of Canada is blacklisted for whatever reason.
Instead of encoding this into the smart contract, tZERO could encode this update into the external source, which would signal to the Smart Contract that Canadian investors cannot engage with $TZROP.
I'd imagine this to be a more cost-effective and efficient process for any updates or alterations necessary, without having to go on-chain.
On top of that, I'd imagine the SEC or any regulatory agency would love this.
Because the data doesn't have to be encoded into the smart contract and the SEC can feel more comfortable knowing this is happening on a more centralized server.
AKA more control and oversight from them.
Another innovation for our security token industry - let's see how it all plays out!
💦 What else is Drippin’
- Abrdn invests in Achax: Abrdn is one of the largest asset-management firms in the U.K!
- First Half of the Year in Review by Peter Gaffney: Great overview of the first half of the year. 20X growth of market cap already!
- Ripple Labs interested in bankrupt crypto lender Celsius' assets: Despite the ongoing lawsuit, Ripple Labs is looking to grow!
Everything in this report is for informational and entertainment purposes only. Nothing in this report should be taken as financial advice or as an inducement to purchase or sell any security. Nothing in this market report should be used as legal advice. Always do your own research before making any decisions regarding financial transactions of securities.
• No money or other consideration is being solicited, and if sent in response, will not be accepted;
• No offer to buy the securities can be accepted and no part of the purchase price can be received until the offering statement is filed and only through the platform of an intermediary (funding portal or broker-dealer); and
• A person’s indication of interest includes no obligation or commitment of any kind.