Security Token Group, a venture studio focused on the digital securities and tokenized securities industry, raises $3 million Series A financing, led by Blue Bay Ventures, and including strategic investments from Blizzard Fund (the VC fund of Ava Labs / Avalanche), Exodus, and #miamitech leaders.
Founded in 2017, STG supports asset issuers within the security token industry across the entire lifecycle of an investment. The group has three main business subsidiaries, Security Token Market, Security Token Advisors, and Security Token Capital.
Security Token Group CEO Herwig Konings, said that the latest funding will drive resources towards innovation across its portfolio.
“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 CEO Herwig Konings
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 launched its own tokenized crowdfunding campaign, which has demonstrated tremendous interest during the current Testing the Waters period in which over $6 million 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, where investors in the campaign will receive a digital token representing the investment in the company.
Security Token Market CEO and Security Token Group co-founder Kyle Sonlin, said:
“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.”
STG will use the fund from the Series A round to expand on its other business verticals, Security Token Advisors and Security Token Capital.
Through its commitment to compliant digital securities being issued globally, Security Token Group has earned industry confidence and a solid reputation. This Series A funding gives further growth capital and strategic input to STG, allowing it to secure market share in a burgeoning industry that is backed by both investment banks and regulators.
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