Last week, tribeOS announced at the Security Token Summit in Bermuda that its digital security offering FIRE is the first digital security to be granted regulatory approval in Bermuda. Recent activity by Bermuda’s legislators indicates the country aims to establish a digital asset friendly jurisdiction.
tribeOS as Bermuda’s First Digital Security Explained
tribeOS is a blockchain-based digital advertising marketplace designed to enable secure online campaigns for advertisers and publishers.
Their digital security— FIRE— is an equity token where investors receive a share of revenue generated by tribeOS. FIRE allows token holders to receive certain dividends from both funds spent on the platform as well as the overall success of tribeOS.
The Digital Security Offering— sometimes referred to as a Security Token Offering (STO)— is described by tribeOS co-founder as something that “creates a framework for startups to tokenize and gain traction in the new digital asset economy”.
FIRE is the first ever digital security to see regulatory approval under Bermuda’s relatively new ICO act, which was passed into law in 2018.
Recent news surrounding Bermuda suggests the island is planning to attract many digital asset ventures. In April of 2018 for example, Bermuda signed a Memorandum of Understanding with Binance with the intention of establishing a regulatory friendly jurisdiction for digital asset issuance.
The Quickly Growing Implementation of Digital Securities
Digital securities— which are synonymous to security tokens— are believed by many to feature the latest wave of blockchain implementation.
Real world assets to include real estate, equity, investment funds, REITs, and even fine art have all become tokenized.
While regulatory ambiguity clouds the majority of blockchain-based assets, security tokens explicitly declare themselves securities. As a result, they must abide by all applicable securities laws, at least according to US Securities and Exchange Commission (SEC) Chairman Jay Clayton.
The regulatory safety in doing so has attracted many enterprises wishing to raise capital. Some have even cancelled Initial Coin Offerings (ICOs), and turned to the STO instead.
In addition to the regulatory clarity, security tokens are anticipated to bring significant liquidity to the traditionally illiquid asset class of traditional securities
What do you think about the first ever digital security to experience regulatory approval in Bermuda? Will Bermuda become a hotbed of digital security issuance? Let us know what you think in the comments section below.
Image courtesy of Bermuda Online.