Digital securities market research 2019

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Digital Securities Market Research 2019

• A comprehensive report on current state of the
  market

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Introduction

• With the breakneck speed at which the Blockchain
  industry continues to evolve, keeping up has
  never been more important. For most investors
  however, knowing what sources to trust in this
  respect is where difficulties arise. Here at
  Kepler Finance, due to our wide range of
  experience in the space, we believe that we fit
  the mold of an industry authority.
• The Digital Securities market is about to become
  a big hit, though very little actionable
  information exists on it at this time. For that
  reason, we've compiled this research, including
  facts, figures and insights, for you to unlock
  their value. In the end, we hope to clarify
  exactly why they comprise a trusted technical
  framework and, in addition, what differentiates
  them from previous industry standards.

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Digitization of Securities
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Tokenization

• Asset digitalization (aka tokenization) is
  creating a whole new user experience. Digitizing
  an asset and using a smart contract enables the
  shares owners, for example, to sell shares of
  private securities on complaint exchanges
  on-demand - and not suffer from their money being
  locked up in funds for years.
• Basically, the new technology improves the ease
  of creating a transaction - aka liquidity. It
  isnt doing anything to the financial security
  itself, but it changes the way ownership is
  managed and how the activities after the
  investment are automated.

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Mitigating risks of the process

• Everyone should also be aware that currently,
  there are unknown risks that the digitization
  process might bring. That is why we supplemented
  our fact-finding analysis with series of
  interviews with some of the leading companies
  operating in the Digital Securities market.
• We interviewed
• Issuance Platforms,
• Liquidity Providers,
• Custody Service Providers,
• Legal Counsels,
• Issuers,
• Investors.

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Market
Ecosystem
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At the beginning

• Like successful companies, successful ecosystems
  go through distinct stages. The Digital
  Securities market has faced these major questions
  throughout the entire 2018
• Could these assets eventually become the new norm
  in a more reputable ecosystem?
• Could it attract significant funding?
• Why are STOs often a better means to raise
  capital?
• Based on Kepler Finances study, last year
  conclusively answered these questions with a
  series of milestones.

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Digital Securities ecosystem elements

• The Digital Securities ecosystem is the
  combination of the several elements that together
  provide a whole spectrum of activity from the
  creating to the trading of a Digital Security.
• These elements include
• Token Issuance,
• Legal Validation,
• Regulatory Compliance,
• Asset Custody,
• Token Trading Liquidity.
• All of it, including issuance, is going to be
  automated.

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Digital Securities Offering Stats and Insights

• You might think that there are lots of completed
  Digital Securities Offerings since the issue is
  trending, but that is not the case yet. Token
  registration and issuance is not that
  straight-forward - it takes months of work by key
  stakeholders. Kepler Finance has analysed two
  completed offerings to demonstrate the main
  components of a successful Digital Securities
  Offering.

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Legal Perspective
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About Kepler Finance
Disclaimer

• Kepler Finance is dedicated to providing
  comprehensive data focused on the DLT and digital
  asset sector for investors. Our own research into
  blockchain companies shows us how fragmented
  blockchain investment data is at both the company
  and industry levels. We believe that solving this
  problem will increase trust and unlock value in
  the sector.

• The data shown in the research should not be
  considered investment advice. No one should make
  any investment decision without first consulting
  their own financial advisor and conducting their
  own research and due diligence. This is a
  non-exhaustive list. It is important to discuss
  these with legal and tax experts in the relevant
  jurisdic.
• See full report with comments from experts here
  kepler.finance/digital-securities-market-research/