Security Token Group (“STG”, “Company”, securitytokengroup.com), a venture studio focused on building financial infrastructure to support the growth and development of the security token industry, is excited to confirm the closure of the Company’s $3 million Series A round, led by Blue Bay Ventures, and including strategic investments from Blizzard Fund (the VC fund of Ava Labs / Avalanche), Exodus, and #miamitech leaders.
“Security Token Group is excited to announce the closure of our Series A round that will drive resources towards innovation across our portfolio,” said Security Token Group CEO Herwig Konings. “This industry is seeing a moment of hyperbolic growth, with new tokenizations of businesses, real estate, fund products and more happening almost daily. We can’t wait to work with these strategic partners in building the rails that will reduce the pain points for the industry to scale to an institutional level where even Wall Street can participate.”
Security Token Group wholly owns subsidiary Security Token Market (“STM”, stm.co), the largest repository of security token trading data and news, with a live-trading data feed for over 200 security tokens currently valued at $20B in market capitalization while also tracking over 500 primary offerings. STM also produces professional media programming around the larger blockchain industry, with properties such as The Security Token Show, Spilling the NFTea, Open Tab, and Crypto Con Leche, among others that amass millions of impressions across social media and thousands of hours watched and listened across its YouTube and podcast channels.
Security Token Market recently made headlines through the announcement of its own tokenized crowdfunding campaign, which has demonstrated tremendous interest during the current Testing the Waters period in which over $6M has been pledged by over 1,000 investors from over 25 countries in just the first 90 days. The crowdfund will be in the form of a security token, meaning that investors in the campaign will receive a digital token representing the investment in the company.
“The Security Token Market team has been blown away by the interest demonstrated in our crowdfunding announcement. We’ve seen a significant increase in traction across our data platform and media properties, and are excited to be a pioneer in driving future secondary market liquidity for crowdfunding campaigns through a security token offering. It was also important for us to lead by example in issuing a token the right way—by embracing securities laws and creating an offering that supports the new benefits of tokenization,” said Security Token Market CEO and Security Token Group co-founder Kyle Sonlin.
With the capital committed from its Series A round, STG will also seek to expand on its other business verticals, Security Token Advisors (“STA, securitytokenadvisors.com) and Security Token Capital (“STC, securitytokencapital.com).
Security Token Advisors is the leading consulting firm in the security token industry, assisting asset owners ranging from business owners and family offices with large real estate portfolios to governments and sovereign funds in executing a successful securitization leveraging blockchain technology. These engagements consist of leading an asset owner through the process of tokenizing an asset, beginning with token structuring and working with applicable vendors, including legal support, broker-dealer engagements, and investor relations strategies. STA’s experienced team has worked through many compliant securities issuances and has worked with a wide variety of asset classes and jurisdictions.
Security Token Capital will be preparing to launch tokenized investment products that leverage blockchain technology to offer investors new benefits and gains from efficiencies. This new vertical will help support the industry by creating institutional investment products designed to introduce more professional investors and retail traders to security tokens.
Security Token Group has assembled a diverse team of over 25 talented individuals based in Miami, Florida since its founding over 4 years ago. The firm has built industry trust and a strong reputation through its commitment to compliant digital securities being issued around the world. This Series A investment provides the firm with additional growth capital and strategic input to help STG secure market share in this growing industry supported by investment banks and regulators alike.
“I first encountered Security Token Market through their podcast and quickly learned of their vital role in this industry. Security Token Group as a whole has led the way in tokenization education, adoption, market transparency, and community development.” said John Nahas, Vice President of Business Development at Ava Labs.
“Security Token Group has continued to innovate since the inception of the security token industry. We could not be more excited to work closely with their team to drive the adoption of the digital securities sector. Security tokens have a massive opportunity to disrupt capital markets and create more efficient financial solutions,” said JP Richardson, CEO of Exodus
“Blue Bay Ventures is long-term bullish on the future of tokenized assets and securities. Security Token Group is the company that is smack in the middle of it all. Herwig and Kyle are extraordinary entrepreneurs, and we have full faith in the team’s execution at STG. Its platform will certainly spearhead the adoption of the new security token industry in capital markets.” said Nico Pantelis, GP of Blue Bay Ventures