Article by Gerald Fenech
With blockchain being very popular at Davos this year, it’s no surprise that many investment bankers are looking at this opportunity on a long term basis. I caught up with Rutger Janse who’s an investment banker and who began his career at ABN AMRO Bank N.V. Finding that his position there lacked challenge, he resigned to start his own asset management firm.
Janse states, “I have been developing relationships with high-net-worth clients and institutional investors to help them pursue their short-term and long-term financial goals”. Janse’s clients are located in Holland, Luxembourg, Switzerland, Monaco, United States, Bahrain, Dubai, Abu Dhabi and Saudi Arabia.
Recently in New York City for strategic partnerships and Digital IPO workshops for his firm’s business associates working on Wall Street, Janse says he is aware of a huge growth of interest in digitized shares from institutional parties, “because this is a safer haven compared to utilitarian tokens“.
There are a number of drawbacks related to crypto: ICOs (Initial Coin Offerings) are an unknown area for municipal and federal regulators. Digital IPOs would overcome this by ensuring that the uncertainties of Initial Coin Offerings are addressed because the tokens that are issued are securities.
“With security tokens, you trade economic ownership rights of a share. The moment that this transaction is based on a private deed that is recorded in the blockchain, it will stand in a court of law”.
With Digital IPOs, issuers enjoy the benefits of tokenization, disabling intermediaries and acquiring access to a much larger number of potential investors.
“I think that Digital IPOs will not only overtake Initial Coin Offerings as a capital raising mechanism but also overtake traditional fundraising manners. As it continues to infiltrate many different economic sectors, blockchain will definitely become standard protocol in the medium to long term”.
Presently Janse’s company, SCTAG (Secure Capital Technical Advisory Group) is involved with several companies with the intent of:
(1) democratizing property wealth by creating the first real-time debt and equity marketplace
(2) creating an asset diagnostic protocol that provides a layer of value assurance for any platform through the hyper interoperability of a transactional bridge
(3) providing established companies, start-ups and investors with a secure and flexible ecosystem to buy and sell security tokens.
Questioned about his plans for SCTAG in 2019, Rutger Janse said that its focus in 2019 will be the delivery of further strategic projects enabling the simplification of Digital IPOs, the expansion of primary and secondary market liquidity pools and the bridging of gaps between digital, smart and traditional money through a variety of strategic platforms.
SCTAG will continue its search for strategic projects but focus heavily on pipe projects that will support and expand revenue for existing strategic projects and their liquidity pools.
As part of the drive to make investing easier, SCTAG will expand its fund portfolios through new strategic partnerships and will continue making very early-stage investments. It will also diversify new portfolios to be backed by later-stage projects increasing secondary market liquidity pools for new digital markets.