Earlier this week, we published a blog post about the Financial Action Task Force’s (FATF) newly updated guidance on anti-money laundering and know your customer (AML/KYC) best practices for the hot sectors of DeFi (decentralized finance) and NFTs (non-fungible tokens). The gist of the guidance, and the various laws it has inspired, is simple and has been relatively consistent for years: the AML/KYC rules which apply to legacy financial institutions also apply to the cryptocurrency and blockchain sector, regardless of any degree of “decentralization” or automation they employ.
For some firmly positioned inside cryptocurrency, this was seen as an existential threat to innovation. How could one leverage the technological benefits of this new sector AND still comply with the onerous record keeping practices which demand significant resources from legacy financial institutions which must adhere to them?
Luckily for those concerned, an innovative team of entrepreneurs, technologists, asset managers, and lawyers have been working on answering this question since 2018, before many now-concerned onlookers even acknowledged the need for an easy to use and legally comprehensive solution to digital asset issuance, management, and trading. That team, led by CEO James Belding, is Tokenized. Today, Unbounded Capital is thrilled to announce our investment in Tokenized, a protocol and software product we think is years ahead in enabling entrepreneurs to take full advantage of the ongoing Bitcoin-fueled boom in internet innovation.
What is Tokenized?
Tokenized is both a protocol and an interface to use that protocol, which together enable innovative entrepreneurs to leverage the best that blockchain technology has to offer while easily remaining compliant with the regulation that others worry will render them obsolete.
To better understand the combination of protocol and interface, think SMTP (Simple Mail Transfer Protocol...which maybe you haven’t heard of) and an email client like Gmail (which you use to interface with SMTP). Just like Gmail makes using SMTP simple for end users, often hiding it completely, the Tokenized platform makes using the Tokenized protocol easy.
So what innovation does Tokenized unlock? The Tokenized protocol was built to enable the transfer and storage of messages on top of ultra-scalable Bitcoin (BSV) for the purpose of facilitating the issuance, management, and trade of various types of assets, represented as tokens. Beyond secure messaging and token issuance, the Tokenized protocol makes it easy to leverage Bitcoin for other necessary components of ones’ asset management needs like smart contracts, registers, oracles, wallets and more.
The Tokenized platform is the product which most customers will use to interface with the Tokenized protocol, just like Gmail in relation to SMTP. By abstracting the complexity of the underlying protocol, and displaying it in a familiar and easy to use interface the Tokenized platform makes it simple for end users to go from idea to execution on every aspect of their asset management needs. Plus, because Tokenized has built their protocol and platform with regulatory compliance at the forefront, they have incorporated the ability to fulfill all legal requirements for the various use cases future customers will require.
A preview of the Tokenized platform’s easy to use dashboard.
Does Alice have coupons she needs to issue for her restaurant? She can use Tokenized to issue, track, and manage her customers’ redemptions.
Does Bob want to explore issuing a security token for ownership in his company? He can use Tokenized to issue, govern, manage, and account for his company’s equity.
Tokenized’s Role in the Future of Asset Management
Tokenized is the perfect tool to realize the promise of Bitcoin and kickstart the next wave of FinTech and broader internet innovation. With continued regulatory developments, like those recently issued by FATF, the need for comprehensive solutions which optimize for both user experience and regulatory compliance are becoming even more important for entrepreneurs seeking to create innovations on top of Bitcoin.
Earlier this week, Tokenized CEO James Belding published a blog post titled Real Security Tokens Are Here, outlining his thoughts on the groundbreaking SEC qualified security token offering by Exodus through blockchain based tokens representing the company’s common stock. Belding noted that this was a “big moment for the digital assets/DLT/blockchain industry because it signals that the risks associated with the use of the technology for the record-keeping functions associated with owning and trading digital security tokens have been considered, and that methods to manage those risks have been proposed and accepted by the SEC.” He added that he “expects regulators around the world to be watching carefully, and I believe they will follow suit within the next few years.”
As the trend of using blockchain technology to issue and manage regulated securities continues, Tokenized and the Tokenized protocol are positioned to facilitate the bulwark of this growth. Because of their deep understanding of Bitcoin (BSV) and the entire scope of needs, both regulatory and technical, of asset issuers, Tokenized will be able to offer customers a service unavailable elsewhere. Customers like Bob who are seeking to follow in Exodus’ steps and issue regulated securities will appreciate Tokenized’s thoroughness when it comes to simplifying otherwise complex legal hurdles. Customers like Alice who are seeking to leverage simpler tokens like restaurant coupons will appreciate Tokenized’s ease of use for managing their restaurants’ promotional needs.
We are extremely excited to be working with Tokenized as more customers begin to use their protocol and platform in innovative ways! We expect Tokenized and their customers to revolutionize asset management, and in so doing, help build the future of the internet!
Please visit Tokenized's website or contact us directly to get more information if you or your company are interested in exploring the following use cases (to name a few) on the only professional, efficient, and highly scalable blockchain, Bitcoin (BSV):
Asset Issuance
Common Shares
Admission Tickets
Coupons
Memberships
Financial Instruments
Options
Futures
Swaps
Convertible Bonds
Utility Tokens
Carbon Credits
Recycling Credits
Tax Credits
Digital Collectibles
Identity Tokens
Citizenship
License
Passports
Entry Visas