Ravencoin + Vertalo + tZero
If you’ve read other articles from this Medium account, you already know that Ravencoin is an ideal platform for tokenizing anything from NFTs, Gift Cards, Art, News, Stocks, Equity, etc.
Ravencoin hosted assets can immutably document what you own through the token and its meta data. It gives tools to issuers of securities to be able to follow US regulations. It is decentralized so nobody can circumvent the blockchain rules. It is the apex predator of tokenization.
So, why isn’t everyone using it for securities already? Simply because we have a regulatory system that was constructed in 1933, and 1934. This system was built around separating roles, so you have Transfer Agents, Broker/Dealers, Exchanges, Alternative Trading Systems. In 2011 we discovered technology can handle most of these roles, but our federal legal system hasn’t updated (yet).
So, for tokenization and trading of securities (a legal term that means there are promises still to be kept by non-programmable humans), there are compliance issues. These compliance issues have been solved by combining several companies, including tZero, to fulfill these roles. There are others, but tZero was there first through a lot of legal work, acquisitions, and some patents along the way.
Ravencoin should have been the token of choice for tZero from the get go, but because of some NIH (Not Invented Here) internal politics, Ravencoin sadly was not integrated as it should have been.
We have an opportunity to fix that. Vertalo has created some tools/API which integrate blockchains with compliant ATSes and already integrates with tZero. There is a non-free opportunity to integrate Ravencoin assets with Vertalo, and by extension with tZero.
In order to take advantage of this opportunity, we will need to collect funds together from the Ravencoin community and possibly from Overstock/Beyond and tZero for the development work by Vertalo. Ideally, all three (Ravencoin community, Beyond formerly Overstock, and tZero ) contribute, have skin the game, and we make the best platform for tokenizing and trading securities.
What happens after that? Then it is up to tZero, or their customers, to tokenize stocks on Ravencoin. It is easy, inexpensive, decentralized, and very secure.
I, for one, would love to see this vision fulfilled for an end-to-end platform for tokenizing stocks, and trading that can be linked to the NMS (National Market System).
The proposal
Just FYI, we’ve worked and massaged this proposal a bit because ordinarily Vertalo requires a yearly maintenance fee, but that’s because most blockchains are changing often as some centralized decision maker adds new “blockchain” features that aren’t backwards compatible and breaks the API development of Vertalo. This ongoing maintenance fee has been eliminated as long as there are no changes that aren’t 100% backwards compatible.
The cost for the integration was communicated from Vertalo as 4M RVN when RVN was $0.025, so about $100,000 USD or equivalent in RVN.
This does not guarantee usage by tZero or its clients, but would also integrate Ravencoin assets with other potential ATSes (Alternative Trading Systems) for trading securities.
Timing
The timing could not be better for this. Ravencoin and tZero would’ve been working together in 2018 if a reasonable SEC and regulatory framework were in place at the time. I worked for tZero as a Senior Developer before Medici Ventures was formed. Later I had the opportunity to help other crypto related portfolio companies besides tZero, and then ultimately worked on the Ravencoin open-source project.
The new administration is committed to clear rules of the road for these technologies, which opens up a new opportunity to work together again. As the rules become clear, opportunities will explode as tokenization of everything takes hold.
Ravencoin is perfectly positioned to handle the tokenization of securities.
Ideal Scenario
The ideal scenario is that the Ravencoin Community, $BYON (Marcus Lemonis) and tZero (David Goone) contribute to this effort. It is important that all parties are on board with this so that we’re not connecting Ravencoin to tZero for nothing.
Collection
For RVN, the Ravencoin Foundation has created an address for this project.
RSuQ59BNhWi1EhMW4fB7tZxqGeofgueL4D
If the proposal amount is reached, the funds will activate the proposal from Vertalo. Any single contribution amount above $5000 at the time of donation will be returned to the sending address if the total goal is not reached.
Once the proposal threshold has been reached, the funds will be sent to Vertalo to build out the connection to Ravencoin.
Goals
The goal is to raise 4M RVN, maybe less if the price increases. Using those funds, Vertalo builds the linkage needed from Ravencoin hosted assets to tZero. tZero uses Ravencoin as the blockchain for all future equity tokenization projects. The Ravencoin Community gets behind tZero, and it is a win-win-win for everyone.