A security token (‘‘ST’’) is a virtual asset, a financial instrument represented in tokenized form and transacted and settled on a distributed ledger network. ST are emerging as an innovative way to facilitate capital raises and investments in businesses and projects. Security Token Offerings (“STO”) typically refer to initial offerings of new security tokens utilizing blockchain technology.
Signum Digital is a joint venture between Coinstreet and Somerley, bringing together Coinstreet’s fintech solutions and technical expertise in STOs, and Somerley’s extensive experience and best governance practices in the conventional corporate finance and advisory sector.
Our vision is to create new and alternate ways for companies to raise capital through the issuance of ST, as well provide a means for professional investors to subscribe for and invest in ST.
Founded in 2017, Coinstreet is an award-winning professional advisory and consulting firm in the Digital Asset sector. Coinstreet also offers innovative Fintech services, as well as business and operation solutions, covering four key business segments including: (1) TOKENIZATION BUSINESS – Digitized Securities & Security Tokens (STO); (2) ASSET MANAGEMENT – Custodian, DeFi, Investment Funds; (3) WEB3, METAVERSE & UTILITY TOKENS – NFT, Stablecoin, Loyalty Tokens; and (4) ACCELERATOR – Education, PR, Events, Marketing, Consultation. For more information, please visit https://coinstreet.partners.
Executive Director and CEO
Mr. Samson Lee (or Sam), is a prominent entrepreneur and FinTech executive with over 25 years’ experience in the digital economy industry. He actively gives back and contributes to the industry, with solid track record in commercializing various blockchain, digital asset and e-business projects. Some of his recent projects include – • Winner of the “Asia Futurist Leadership Award” organized by the “Association of Family Offices in Asia”; • Completion of two projects in the Fintech Proof-of-Concept Subsidy Scheme organized by The Financial Services and the Treasury Bureau (FSTB) of Hong Kong; • Winner of “Security Tokens Realised Awards London 2020”; • Co-organizer of TADS Awards, the world’s first international awards for Tokenized Assets & Digitized Securities, inaugurated in 2020; • Co-organizer of Digital Asset Series (DAS), one of the first and largest educational seminar in Asia, supported by 3 government bodies, 5 universities and 7 industry organizations; • Author of the “Digital Asset Year” chapter of “Welcome to the New Era of Finance – Hong Kong’s Fintech Practice and Prospects” book, published by Hong Kong University of Science and Technology; • Co-chairman of “Asia Pacific Digital Economy Institute”; • Co-chairman of “NFT Association of Hong Kong”. Mr. Lee graduated with an MBA and a Master of Science degrees from the Hong Kong University of Science and Technology, and a Bachelor of Commerce degree from the University of Toronto.
Mr. Hesse started his career at J.P. Morgan in London, before moving to the renewable energy investment banking group at Jefferies. Mr. Hesse started his career at JPMorgan in London before moving to Jefferies and joining Somerley in 2011. He has successfully advised shareholders, company boards and independent directors on numerous public and private transactions. His extensive corporate finance advisory experience covers IPOs, capital raises, fairness opinions and cross-border situations. He holds a Bachelor degree from Munich University of Technology and a Master degree from the London School of Economics and Political Science.
Ms. Yip has over 15 years of experience in corporate finance and participated in numerous corporate finance exercises such as IPOs, M&As, debt and equity fund raisings and a wide range of corporate financial advisory, independent financial advisory and placement transactions in Hong Kong, the PRC and Singapore. She started as a consultant with Coinstreet in January 2021 and became its Vice President of Corporate Development in April 2022. Ms. Yip is currently a Director of Signum. Ms. Yip was a director in corporate finance with Merdeka Corporate Finance Limited, Frontier Capital Investment Limited, and Associate Director in corporate finance with Kingston Corporate Finance Limited. Ms. Yip has extensive experience in corporate finance advisory and completed numerous corporate finance exercises such as IPOs, M&As, placements and general offers. Ms. Yip holds a Bachelor degree from University of Washington – Information System and a Diploma in International Corporate Financial Laws from University of Wolverhampton.
News & Events
17 March 2023
Most assets and securities can be tokenized. From real estate to gold to intellectual property rights, the way asset owners are structuring their assets, and the way investors are managing their investments is about to undergo a revolutionary change due to the emergence of asset tokenization. Through this new concept, tokenized assets, digitized securities or security tokens are created through distributed ledger technology, otherwise known as blockchain, and serve as a digital representation or derivative form of their underlying assets. Some of the key asset classes that can be tokenized include:
a) Ownership – fixed assets, equities, commodities, IP, arts/collectibles;
b) Debt – bonds, debentures, mortgages, mezzanine loans;
c) Cashflow – revenue, profit, dividends, rents, income-bearing notes;
d) Investment Funds – VC, PE, CIS, crypto, real estate funds, REITs; and
e) Crypto Assets – Bitcoin, stablecoins, cryptocurrencies, utility tokens.
Security Token Offering (STO)
A security token (‘‘ST’’) is a virtual asset, a financial instrument represented in tokenized form and transacted and settled on a distributed ledger network. ST are emerging as an innovative way to facilitate capital raises and investments in businesses and projects.
An initial offering of digitized securities, tokenized assets, or derivative tokens to investors is often referred to as Security Token Offering (STO), Tokenized Asset Offering (TAO), or Digitized Securities Offering (DSO). Tokenizing assets has the potential to create a “token economy” through a frictionless transaction cycle from the creation to the buying and selling of securities. Security Token Offerings (“STO”) typically refer to initial offerings of new security tokens utilizing blockchain technology.
STO allows access to a broader base of investors globally with higher liquidity. Transactions through smart contracts reduce transaction costs and shorten settlement time. Pre-defined business rules in smart contracts and the immutable nature of blockchain provide additional transparency and improved corporate governance. The unique nature of tokens allows global settlement on digitized securities on the blockchain where underlying assets can be traded in a highly divisible way and 24/7 globally. This new way of fractional ownership, with a smaller investment size, and a cost effective model, could bring investment and secondary trading to a new frontier.
Benefits of STO
Currently, over 20 countries have a legal framework around digitized securities and security tokens. STO have the potential to provide corporate finance tools for traditional enterprises. Key benefits include:
1. The use of blockchain increases transparency by providing a method of immutably verifying and tracking investor data;
2. Reduced counterparty risk as settlement is done on blockchain;
3. Settlement of trades on blockchain is usually faster than for traditionally traded securities which follow a “T+x” timetable;
4. Increased liquidity of primary and secondary market opportunities;
5. Private equity funds and venture funds may offer their LPs an early exit;
6. Investor management and administration of an STO can be streamlined through cap-table management automation;
7. Smart contracts make it possible to code ownership and transfer restrictions into the token; and
8. Simplification of accounting, auditing, and tax reporting processes in the long run.