Seven Stars Cloud Partners with Fundamental Interactions to Build Out Velocity Ledger Network Global Operations - Blockchain-enabled Tokenization, Secondary Trading and Settlement of Illiquid Assets

Partnership allows Seven Stars Cloud to quickly and efficiently digitize real-world assets via proven blockchain technology to create new financial markets

NEW YORK, July 11, 2018 /PRNewswire/ -- Seven Stars Cloud Group, Inc. (SSC) ("SSC" or the "Company"), a leading global fintech firm focusing on digital asset production and distribution, today announced a long-term relationship and strategic licensing agreement with New York-based Fundamental Interactions, a world class provider of enterprise market center technology.

Through this agreement, SSC will leverage core Fundamental Interactions technology and the Velocity Ledger platform to support the tokenization, secondary trading and settlement of new blockchain-based securities. The Velocity Ledger platform is in operation for various approved entities by the Securities and Exchange Commission (SEC) and FINRA.

While Velocity Ledger has been designed to support U.S. securities tokens, OTC crypto currencies, and real estate securities, it has unlimited potential to manage the issuance, trading and settlement of digital assets across jurisdiction and across asset classes (securities and non-securities). Velocity Ledger is a blockchain-based, software-as-a-service (SaaS) platform that operates as a private blockchain solution and interacts with all of the major public blockchains.

Seven Stars Cloud will work closely with issuers and underwriters of securities in order to source a wide array of financial products. Post issuance, these financial products will undergo a comprehensive rating system to provide transparency into the underlying assets. Additionally, SSC will secure institutional market makers and traders to join Velocity Ledger, providing new product exposure and liquidity to previously illiquid assets. SSC will also leverage its partnership with BBD Digital Capital Group, a leading provider of Artificial Intelligence-based big data solutions to support ratings and risk management of these newly created digital assets.

There are a myriad of benefits afforded by tokenizing securities via Velocity Ledger. These benefits include new product creation and market exposure, competitive fees, fast deal execution, access to institutional investors and broker dealers. In addition to these market and product specific benefits, Velocity Ledger automates key service functions to reduce the number of middlemen and service providers typically involved in a securities transaction. At its core, Velocity Ledger enables highly transparent, immutable, and auditable transaction activity and reporting.  

Commenting on the partnership, Bruno Wu, Executive Chairman & CEO of SSC, said: "With Velocity Ledger, we will work with our partners to develop marketplaces for previously illiquid and un-tradeable assets. We have our eyes set on the fixed income, real estate, venture capital, and private equity markets, amongst various other securities and asset classes. By combining the power of Velocity Ledger with SSC's wide distribution capabilities, we will bring tremendous efficiencies to the capital formation process, narrow bid-ask spreads, and reduce the time and costs for closing and settling transactions via blockchain and AI technology."

"Our partnership with Fundamental Interactions represents a flagship opportunity in SSC's ability to penetrate the tokenized security markets. We are thrilled to be working with Fundamental Interactions to harness the power of blockchain and spread the adoption of security tokens across industry," said Bruno Wu.

Shawn Sloves, CEO of Fundamental Interactions, added, "After several years of hype, blockchain-based solutions are well on track to deliver on their considerable promise. We are excited to be working with Bruno and his team at SSC and look forward to extending the benefits of Velocity Ledger to a variety of new liquid and illiquid asset classes."

About Seven Stars Cloud Group, Inc. (http://www.sevenstarscloud.com/)

SSC is aiming to become a next generation Artificial-Intelligence (AI) & blockchain-powered, fintech service company, focusing on digital asset production and distribution. The Company facilitates and enables the transformation from traditional financial markets into the asset digitization era.  SSC acts as the manager and service provider of an ecosystem for securitization and digital currency tokenization as well as trading system integration.

Agreement with the China Venture Capital Research Institute to Exclusively Deliver Next Generation Fixed Income Products

Partnership allows Seven Stars Cloud to provide AI-enhanced rating and risk management, blockchain-enabled fractionalization, securitization, tokenization, distribution and trading services across various fixed income asset classes - with the ability to extend the sales and trading globally

NEW YORK, July 23, 2018 /PRNewswire/ -- Seven Stars Cloud Group, Inc. (SSC) ("SSC" or the "Company"), a leading global fintech firm focusing on digital asset production and distribution, today announced that the Company has successfully entered into an exclusive agreement with the China Venture Capital Research Institute ("CVCRI") and its subsidiaries.

As a result, of this strong partnership, SSC will be able to provide the following asset classes and fintech services to financial markets:

Fractionalization and securitization in China, to create new fixed income classes that can be traded on government designated exchanges within China. These asset classes are exclusive to SSC.

Regulated products and assets, created globally, and traded on regulated exchanges outside of China - such as DBOT (Delaware Board of Trade) with whom SSC already has a strong relationship with, amongst others.

Tokenization of these asset classes, including already issued Real Estate Investment Trusts (REITs) and Asset-backed Securities (ABS) will be tokenized and traded on regulated digital asset exchanges, outside of China.

CVCRI is uniquely supported by Chinese regulators and authorities, in order to innovate and pioneer next-generation efforts across the above asset classes. As such, they have decided to work on an exclusive basis with SSC, given SSC's unique and proprietary technology platforms, fintech ecosystem, and vast global reach.

As a result of the strong partnership, SSC will become the sole provider of fintech services for these assets, including but not limited to large-scale commercial real estate and properties held by leading insurance companies, large investment funds, and other fixed income suitable products. SSC will work with CVCRI to develop products for the fixed income asset class and facilitate their sales and trading process on government designated exchanges within China. This exclusivity allows SSC to create significant competitive advantages and barriers to entry, as SSC is the only company in the world that has access to this class of fixed income assets.

The underlying technology that SSC will use for these assets is part of the SSC fintech ecosystem, which includes but is not limited to, Velocity Ledger ("VL"), a leading blockchain-enabled security token Issuance and secondary trading technology platform, and Plutos, BBD (Big Business Data)'s dynamic ontology-based AI engine. Plutos serves as a super intelligence system that collects mass data and carries out data processing to produce high value indexes and product pricing information.

The partnership will provide a full value chain of fintech and asset digitization services. These services will include AI-enhanced rating and risk management services, blockchain-enabled fractionalization, securitization and tokenization, and distribution and trading services through banks and security broker dealer networks in China, with the ability to extend the sales and trading globally.

As the partnership continues to develop, SSC's fintech ecosystem will also be capable of digitizing and tokenizing existing ABS and REIT products on a global basis. While the Chinese market has an abundance of quality illiquid assets such as large-scale commercial real estate and properties held by leading insurance companies, large investment funds, and other fixed income suitable products, it lacks the infrastructure to support a liquid fixed income market that is accessible to retail and institutional investors.

The AI and blockchain-powered services provided by SSC further enables the current global digital asset revolution, as various industry verticals and financial markets enter into an era of "smart" and decentralized asset products. SSC is well-positioned to capitalize on this opportunity by developing these markets and unlocking tremendous value. In effect, SSC is creating a new digital asset ecosystem and the supporting market across these asset classes, thereby "unlocking" their liquidity premium. Furthermore, SSC and CVCRI will undertake their activities in full compliance with regulators.

China Venture Capital Research Institute (CVCRI) was founded in July 2003 with its headquarters in Guangzhou and operating center in Shenzhen. With a status of a National Think Tank in China, it has undertaken research topics and market experiments commissioned by various national and local government agencies. CVCRI is also the publisher of the National Venture Investment and Entrepreneurship Year Book and the organizer of annual conferences. CVCRI provides advisory services to the financial industry and is the most recognizable brand of Chinese financial service market.

Madam Ding Jihong, President of CVCRI, stated that the establishment of this partnership with SSC is a meaningful step towards fintech innovation in China. The relationship will create the liquidity for large financial institutions and asset owners through both the creation of fixed income products and sales and trading through government designated and approved channels and platforms. All the activities under this relationship will be carried out and executed under close guidance from regulators. This exclusive partnership could unlock great value for current illiquid portions of investment funds in China, which reached by end of June a total 73,854 funds with total Assets Under Management (AUM) of $1.88 trillion USD. For large insurance companies holding commercial real estate, the untapped fixed income market value grows much larger.

Dr. Bruno Wu, Chairman and CEO of SSC, commented "SSC is bringing together the world's best underlying technologies that enable leading fintech and asset digitization services. We have also been able to bring aboard an amazingly talented team, representative of top talent in New York, London, and other locations globally to execute our strategy. We are thrilled to execute on this opportunity with CVCRI to deliver next generation fixed income product creation and distribution, utilizing next-generation fintech and AI technologies. SSC is committed to leveraging its newly acquired Global Headquarters for Technology and Innovation in West Hartford, Connecticut to build out similar fintech service centers across the world."

About Seven Stars Cloud Group, Inc. (http://www.sevenstarscloud.com/"">http://www.sevenstarscloud.com/)
SSC is aiming to become a next generation Artificial-Intelligence (AI) & blockchain-powered, fintech service company, focusing on digital asset production and distribution. The Company facilitates and enables the transformation from traditional financial markets into the asset digitization era.  SSC acts as the manager and service provider of an ecosystem for securitization and digital currency tokenization as well as trading system integration." data-reactid="42">About Seven Stars Cloud Group, Inc. (http://www.sevenstarscloud.com/)
SSC is aiming to become a next generation Artificial-Intelligence (AI) & blockchain-powered, fintech service company, focusing on digital asset production and distribution. The Company facilitates and enables the transformation from traditional financial markets into the asset digitization era.  SSC acts as the manager and service provider of an ecosystem for securitization and digital currency tokenization as well as trading system integration.

DELAWARE BOARD OF TRADE, FUNDAMENTAL INTERACTIONS AND Y2X CREATE VELOCITY LEDGER, A PLATFORM FOR ASSET DIGITIZATION AND TRADING ON THE BLOCKCHAIN

New platform enables regulatory approved trading of any asset class any time

Jun 19, 2018, 02:12 ET

NEW YORKJune 19, 2018 /PRNewswire/ -- Delaware Board of Trade (DBOT)Fundamental Interactions, and Y2X announced today the formation of an end-to-end service to digitize and trade multiple asset classes including securities tokens, debt instruments, real estate, art, and intellectual property rights.  Known as Velocity Ledger, the system utilizes leading-edge blockchain-based technology already approved for trading by the SEC and FINRA.  Initial products at launch include U.S. securities tokens and real estate.

Todd Morley, Y2X Co-Founder, said, "We are creating the Operating System of the new digital marketplace.  We are excited to provide regulated marketplaces for assets that until today have been illiquid and untradable.  This will bring the benefits of blockchain technology and cryptocurrency to all investors in an efficient, effective way, with enormous benefits for capital formation as well as for asset management."

Digital currencies are emerging as a new global asset class, and Y2X is at the center of utilizing its capabilities both to raise capital for new enterprises and to enable individuals to invest in high-growth companies more efficiently and effectively.  Fundamental Interactions has established blockchain technologies, including smart contracting features embedded in securities tokens, which will be at the center of this service offering.  Through a well established network of broker-dealers, market makers, market data providers, and deep relationships with the traditional banking system and cryptocurrency network, the alliance will provide end-to-end processes, including creation of tokens eligible for issuance and trading on multiple marketplaces. 

In addition to the DBOT equities venue, which is already in operation as an SEC-regulated ATS, the parties have agreed to establish and fund Velocity Ledger, a marketplace for real estate, fixed income, OTC cryptocurrency, and other asset classes.  Y2X has a pipeline of companies preparing to launch securities token offerings, which will be listed and traded on the system. 

Shawn Sloves, CEO of Fundamental Interactions, added, "Fundamental Interactions' tested technology is already in use at multiple cryptocurrency and traditional exchanges.  Our new standards for tokenization and blockchain-based settlements will ensure these innovative new products can be traded and settled globally."

"DBOT was established to create markets for innovative new products like unlisted securities," commented DBOT Chairman John Wallace.  "With our connectivity to over 200 broker-dealers, as well as market makers and data providers, we are confident we can bring liquidity to this rapidly-growing space in a well-regulated marketplace."

About DBOT
Delaware Board of Trade Holdings, Inc. (DBOT) operates a FINRA regulated, fully electronic auto-execution ATS (Alternative Trading System). DBOT brings the best practices of exchanges the small cap equity marketplace; promoting capital growth, investor confidence, liquidity, security, and transparency. DBOT is a marketplace that serves issuers, investors, investment banks, market makers, and brokers. DBOT offers three marketplaces: PRIME for SEC qualified securities not listed on the exchange, INTERNATIONAL for global companies seeking access to US markets, and VENTURE for REG A+ companies and IPOs.

About Fundamental Interactions
Rising to challenges and opportunities posed by regulation, technology, and market structure shifts – Fundamental Interactions develops leading enterprise market center technology platforms. The systems are widely deployed by securities exchanges, ATS, and inter-dealer brokers across a variety of asset classes and geographic regions.

About Y2X
Established by a group of experienced financial services professionals, technologists and entrepreneurs, Y2X specializes in regulated token issuances and innovative capital raising mechanisms.  The company's name was derived from Moore's Law, Y=2x, and signifies its dedication to the law of accelerating returns. Headquartered in New York City, the mission of Y2X is to be the leading technology driven platform that identifies, finances, and incubates the next generation of transformative ideas and businesses globally.  Learn more about Y2X at: www.y2x.io 

Y2X LAUNCHED TO REVOLUTIONIZE CAPITAL FORMATION AND INVESTMENT MANAGEMENT

NEWS PROVIDED BY Y2X
May 15, 2018, 06:00 ET

  • Six Mandates Confirmed to Raise Capital for Leading Venture Firms
  • Futuristic Investment Model intends to generate Perpetual Alpha Returns
  • Company to raise $200 million through Global Token Offering

NEW YORK, May 15, 2018 /PRNewswire/ -- Guggenheim Partners LLC and G2 Co-Founder J. Todd Morley and a consortium of investors and co-founders announced today the launch of a new blockchain-centric company. Y2X is building the leading new era technology-driven capital formation and strategic early-round investment that identifies, finances, and incubates transformative ideas and businesses. The company comprises a dynamic ecosystem of entrepreneurs, financial experts, investors, and technologists who will support a portfolio of companies focused on the sectors of highest potential growth for human need.

Mo Gawdat, former Chief Business Officer of Google [X] and a Co-Founder of Y2X, said "Y2X is creating a unique platform and community that harnesses the power of peer-to- peer fintech and embraces new blockchain protocols to help entrepreneurs. This is the chance to develop a new technology driven financing model that supports innovation and entrepreneurship, which is led by an exceptional team with deep investing knowledge and experience across investment management."

Global leaders involved in the formation of Y2X include: Arthur A. Bavelas, founder of Family Office Insights and Bavelas Group Family Office; Peter Getz, CEO, PLG Consulting; Eddie Ibanez, CEO, Chief Scientist and founder of Zenabi; Anahita Moghaddam, founder of Neural Beings; Daniela S. Reboucas, Co-founder of G2 Development and Planning and a renowned architect and real estate executive; David L. Shuler, former Managing Director, Paxos, and Vice President, Goldman Sachs; and, Shawn Sloves, CEO and co-founder of Atlas ATS and Fundamental Interactions. For further information visit: www.y2x.io.

Y2X is raising an initial $200 million through a Global Token Offering. Y2X will specialize in regulated token issuances and innovative capital raising mechanisms and will maintain stakes in the companies it helps to finance. Y2X token holders will be offered the opportunity to participate in token issuances and follow-on offerings, executed on behalf of Y2X partners.

Through a multi-pronged strategy, Y2X is providing its partner companies with access to investors, capital and new investment vehicles; opportunities for connectivity to a broader community through its proprietary technology driven platform; and, advisory services including data analytics, research and investment expertise.

As of date, Y2X has secured six mandates to assist companies in raising capital. These leading-edge companies are in the sectors of artificial intelligence, blockchain development, education, energy, infrastructure, and nano biotechnology. With its proprietary investment underwriting methodology, a best-in-class issuance and compliance platform, pipeline of deals under execution, and a registered broker-dealer, Y2X is positioned to raise capital and provide resources for leading-edge venture and select later stage companies.

Y2X Tokens will be issued in compliance with U.S. and other securities regulations and the company is working with trading venues to create secondary markets.

"At Y2X, we believe the solution to funding the next generation of transformative ideas will emerge by disrupting the financial services ecosphere and overlaying innovation in information technology with assets that produce exponential returns," said Y2X Co-Founder Morley. "This can occur in a permanently capitalized investment structure that rejects traditional benchmarking in favor of long term capital appreciation."

According to Y2X Co-Founder Shuler, "We are seeing the emergence of a new asset class that is democratizing how entrepreneurial companies are funded and nurtured. We are working to bring the benefits of the blockchain and cryptocurrencies to investors and to leading companies in high-growth sectors."

"Offering peers the opportunity to participate in a foundation building moment, with an exponential growth enterprise, while solving some of the world's most critical challenges, without the traditional frictions and misalignments of a fund, is truly groundbreaking, rewarding work," comments Y2X Co-Founder Bavelas.

About Y2X
Established by a group of experienced financial services professionals, technologists and entrepreneurs, Y2X specializes in regulated token issuances and innovative capital raising mechanisms. The company's name was derived from Moore's Law, Y=2x, and signifies its dedication to the law of accelerating returns. Headquartered in New York City, the mission of Y2X is to be the leading technology driven platform that identifies, finances, and incubates the next generation of transformative ideas and businesses globally. Learn more about Y2X at: www.y2x.io

 

 

https://www.prnewswire.com/news-releases/y2x-launched-to-revolutionize-capital-formation-and-investment-management-300647910.html

Blue Vault Discusses Velocity Ledger Blockchain-Enabled Trading Platform

February 7, 2018
 
Blue Vault Discusses Velocity Ledger Blockchain-Enabled Trading Platform
 

Blue Vault recently discussed the coming Velocity Ledger (“VL”) blockchain-enabled trading platform for nontraded REIT shares, DSTs, limited partnership interests in joint ventures, and eventually, individual commercial real estate properties and portfolios, with two of the company’s principals, Jon Haahr of Silver Portal Capital and Julian Jacobson of Fundamental Interactions (“FI”). We believe VL has the potential to revolutionize and transform the entire alternative investment industry for real estate, providing liquidity, transparency and fair valuation to the holders of these securities in the secondary market.

The key to this new platform for secondary trading and new security issuance of what are currently illiquid real estate securities is its application of the blockchain and distributed ledger technology. The platform will provide real estate sponsors, market makers, financial advisory firms, IBDs and investors with distributed ledger-based new issuance, tokenization, and trading solutions. But all of this sounds confusing to those of us who are unfamiliar with the blockchain and distributed ledger technology and what may be the greatest revolutionary development in financial markets since the internet.

Perhaps the best way to proceed with this discussion is to refer the reader to several articles on blockchain and distributed ledger technology to introduce the key concepts for those who, like most of us, haven’t gotten caught up in the enthusiasm (bordering on mania) over bitcoin and other “crypto-currencies.” Please see the end of this article for some helpful references. As Julian Jacobson said in our interview, we don’t need to know how our smartphones work to recognize their value and have them transform the way we go about our daily lives. Likewise, we won’t necessarily need to understand how blockchain and distributed ledgers work to use them to enhance the marketability and reduce the distribution cost of real estate securities.

Now, what are the founders of Silver Portal and Fundamental Interactions up to and how can their new platform revolutionize our industry?

First, a key element in this new initiative is the Delaware Board of Trade (“DBOT”) and its regulated Alternative Trading System (“ATS”) which is a strategic partner to Velocity Ledger as they inaugurate the new technology platform. When Blue Vault first heard about this proposal, many of our questions to Jon Haahr, the founder of Silver Portal, concerned the way the new platform would deal with the regulatory complexity of the nontraded REIT market and any other illiquid securities that could be traded. Because the DBOT ATS is already functioning within this regulatory environment, it is uniquely qualified to host Velocity Ledger’s technology platform. DBOT has already blazed a trail utilizing blockchain and distributed ledgers in security trading, fully compliant with FINRA/SEC regulations.

Likewise, Fundamental Interactions brings to the project their deep blockchain experience and existing trade matching and clearing technology that has been proven in the securities trading environment. FI has been involved in blockchain applications since 2013 and has a seven-year track record of designing high-performance multi-asset trading platforms for U.S. exchanges, brokers, dark pools and international execution venues.

For his part, Jon Haahr is the founder of Silver Portal Capital, LLC, a real estate investment/merchant banking and advisory boutique in San Diego, California, that provides a full complement of strategic/financial advice and capital formation services to high quality private real estate operators as well as public and non-traded REITs. Jon has more than 25 years of real estate, capital markets, and investment banking experience, and has been involved in advising on and raising capital of more than $20 billion over 140 transactions in the real estate sector.

When Blue Vault became acquainted with Jon Haahr’s proposal to create a secondary market for nontraded REIT shares and other illiquid securities, we shared his view that two of the major structural impediments to investors in these securities are their lack of liquidity and lack of transparency. Since their inception in the 1990’s, nontraded REITs have had very limited share redemption programs and only very infrequent re-valuations of their net asset values. Investors have been “locked in” for long holding periods with little transparency. Even recent regulatory changes that mandate more frequent valuations via third-party appraisals of real estate investment portfolios have only marginally improved the transparency for nontraded REIT shareholders. High sales commissions and other fees were prevalent in the industry, but for years capital raise was robust. New programs were introduced each year because of the relatively high distributions being paid and commercial real estate’s appeal as a diversification tool due to its low correlation with returns in other asset classes. The nontraded REIT industry has raised over $130 billion and currently has $85 billion in assets under management in over 60 programs.

The secondary markets that do exist to transact sales of nontraded REIT shares, for example, have significant transaction costs, wide bid-ask spreads, and cumbersome paperwork and settlement procedures for shareholders. Third -party tender offers by firms seeking to fill the need for shareholders who need to liquidate their nontraded shares come with huge discounts to NAV, planning to capitalize on shareholder desperation and profit from eventual full-cycle liquidity.

Silver Portal and Fundamental Interactions saw the $50 to $60 billion in aggregate share values in the nontraded REIT sector that are currently “frozen” and unavailable to shareholders as just one example of a market in need of the technological solution that blockchain and distributed ledgers can provide. Velocity Ledger will give shareholders increased transparency, discovery and market-based pricing, as well as transaction settlement efficiencies, creating the potential to re-vitalize the nontraded REIT industry.

The business plan, as Velocity Ledger envisions it, is to establish the trading platform through DBOT in Q1 2018, begin the process of tokenizing secondary trading of nontraded REIT shares and begin trading in Q2 2018. The technology also has the capability to handle property titles and many of the functions currently fulfilled at significant cost by a host of intermediaries.

Importantly for VL, the vision is not limited to providing liquidity, transparency, and efficiency to the nontraded REIT market and the other illiquid securities mentioned above. The property sector is the largest asset class globally, and also the most opaque and inefficient. Worldwide valuation is estimated to exceed $217 trillion (with a “t”!) and it is estimated that $55-60 trillion is tied up in non-residential commercial, 90% of which is privately held and not traded on any exchange. Imagine if just a small percentage of that asset class were “tokenized” so that fractional interests could be efficiently and competitively priced and traded in the aftermarket with very low transaction costs. Combined with the inherent integrity and security of blockchain and distributed ledgers, that possibility hints at the enormous potential for Velocity Ledger’s platform.

In Part II of this report, we’ll get into the specifics of the Velocity Ledger platform.

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