Templum: Regulatory Compliant ICO As Securities Platform?
Templum, found online at TradeTemplum.com, is a regulatory compliance solution for ICOs. Find out how it works today in our Templum review.
What is Templum?
Templum is a New York-based startup initially announced in October 2017. Back in October, it was reported that the company was seeking to bring a regulated token trading platform to the US market.
Today, the company’s official website now lets users request early access to the platform.
Overall, Templum’s goal is to provide regulatory compliant solutions for tokenized asset offerings (i.e. initial coin offerings or ICOs) and subsequent secondary trading. This opens the door for companies to launch ICOs where the tokens represent securities. It’s a regulated trading environment similar to how the world’s stock markets might work.
The long-term goal of Templum is to be a leading fully regulatory compliant platform for the primary issuance and secondary trading of ICOs as securities, thereby creating a new marketplace for digital asset trading.
How Does Templum Work?
Templum’s platform is built with three core functions in mind. All three functions are built behind a regulatory compliant trading environment. They’re designed to represent the full lifecycle of cryptocurrency security tokens:
- Users can buy ICOs as securities through the platform
- Users can sell ICOs as securities through the platform
- Users can issue new tokens through ICOs on the platform
Users can perform all of these functions in an environment that’s fully complaint with US securities laws. Today, most tokens don’t advertise themselves as securities. That’s because companies want to avoid being governed by existing securities laws. Templum will only offer tokens that advertise themselves as securities.
The platform relies on an “alternative trading system” or ATS. As an ATS, Templum is subject to regulation from agencies like the U.S. Securities and Exchange Commission, or SEC, and the Financial Industry Regulatory Authority, or FINRA.
In January 2018, Templum announced the world’s first SEC-compliant trade. The trade was between two institutions that exchanged BCAP tokens issued by Blockchain Capital LLC, a digital assets investment firm.
“We believe this is the first security token to trade in a fully compliant platform,” explained Chris Pallotta, co-founder and CEO of Templum in an interview with Bloomberg.
All security transactions on the Templum platform are conducted through Liquid DBA Templum Markets, a broker dealer fully approved in all 50 states and other foreign jurisdictions. Templum has also received approval to conduct private placements through electronic sales, in addition to its fully approved ATS we mentioned above.
Who’s Behind Templum?
Templum is a blockchain technology startup based in New York. To bring their compliance platform to life, the company partnered with Liquid M Capital. The company is led by co-founder and CEO Chris Pallotta.
In October 2017, the company announced it had raised $2.7 million in a seed funding round. That round was led by Raptor Group, Galaxy Investment Partners, Blockchain Capital, and firstminute.capital. Raptor Group, which was founded by billionaire businessman Jim Pallotta, has previously invested in firms like Uber, as well as blockchain companies like Paxos, among others.
Templum just completed the world’s first security token trade in a compliant environment. The company’s platform allows for legal, regulated, and compliant trading of digital tokens that represent securities in a company. In fact, the platform only trades tokens that represent securities in a company.
To learn more about Templum and how the New York-based startup plans to disrupt today’s token trading markets, visit online today at TradeTemplum.com.