Leading Enterprise Blockchain to Facilitate Security Token Issuance for Prominent Asset-Backed Fund.
This follows the announcement that digital asset manager Wave Financial Group is working with Kentucky-based Wilderness Trail Distillery to launch a fund with up to 25,000 barrels of 2020-vintage bourbon, equivalent to a year’s production. This fund will allow investors to purchase asset-backed tokens linked to an estimated inventory of four million bottles of bourbon barreled this year.
Commenting on the news, Wave Financial President and Manager of Fund, Benjamin Tsai, “Kentucky Bourbon represents a huge opportunity for investors – as many assets lose value over time, whiskey accrues value due to its unique barrel aging process. Investors globally can gain exposure to the ever-growing U.S. whiskey market, introducing liquidity and accessibility into a fine goods market that has typically provided neither.”
The fund was announced on March 18th and opened for subscriptions on June 29, 2020. It is open to non-US and accredited US investors and will be a two token issuance to ensure compliance with reg A (non-accredited, non US investors) and reg D (accredited US investors) SEC regulations. As a registered investment advisor in California, Wave Financial has previously tokenised on Ethereum, but are leveraging Symbol’s unique capabilities for this fund.
David Siemer, CEO of Wave Financial, commented, “After launching the fund, we were on the lookout for a protocol that would facilitate this unique offering. Symbol from NEM was a natural fit, due to its technical capabilities, purpose-built with the issuance of security tokens at the forefront of its network architecture.”
NEM is one of the founding signatories to the Blockchain Token Association’s Verified Token Framework, which is building a regulatory compliant framework for the issuance of tokens. Symbol supports security tokens by design with functionality that enables tokens to be granularly configured, leveraging features including mosaics, account and token restrictions, multi-signature accounts, namespaces and account or mosaic based metadata.
Dave Hodgson, Chief Investment Officer of NEM Group and Managing Director of NEM Ventures, concluded, “I am delighted to see the first committed security issuance on Symbol from NEM, even before its launch. We have been working with Wave Financial since early 2020 to tokenize this unique asset class and it is exciting to see this progress. The Wave team have prior experience of digital asset tokenization are consummate professionals – the perfect partner for our first security token.”
This announcement follows the news that the Bank of Lithuania’s LBCoin, the world’s first Central Bank Digital Currency (CBDC), will launch on Symbol from NEM in July.