A marketplace lender that boasts $100 million in deal volume is launching an ethereum platform for "tokenized investment vehicles."
Released by Blackmoon Financial Group today, Blackmoon Crypto is designed to enable verified asset managers to create and manage tokenized funds in a legally compliant manner. Operating in nine countries, Blackmoon has attracted $2.5 million to date in investment from firms including Target Global and Flint Capital.
The company, which operates the Blackmoon Lending Marketplace, launched in the U.S. last year, and has offices in New York and Cyprus. Blackmoon Crypto is incorporated in Singapore.
While tokens may seem like a departure for a business focused on marketplace lending, Oleg Seydak, CEO of Blackmoon Financial Group, described it as "complementary."
In interview, Seydak argued that tokenized funds simply need an industry standard for private and institutional investors.
"The main idea of Blackmoon Crypto is provide a legal and technical framework for asset managers to create and continuously manage tokenized investment funds," he told CoinDesk, adding:
What about the SEC?
In context, however, the announcement for Russia-based Blackmoon comes at an interesting time.
However, Blackmoon has clarified that it will not be operating with U.S. investors. "Such an organization should be licensed as a broker dealer," explained Seydak.
Blackmoon will, however, apply for a broker dealer license and aims to have that in place within the next nine to 12 months.
"Then we will be able to sell securities to sophisticated and accredited investors in the U.S," Seydak said.
For now, he noted that U.S. investment managers will be able to participate if they are selling to investors outside the country.
Timeline to launch
Overall, this means that Blackmoon has a timeline in place to have three funds on the platform by early 2018.
Going forward, the company will issue its first ethereum-based tokens, called Blackmoon Crypto tokens (BMC), on the platform in September.
"The first two funds on the platform are based on asset classes we operate within the original Blackmoon," Seydak explained.
With this step kicking off the operation, Blackmoon Crypto aims to introduce its first external manager to the platform in Q1 2018.
Coins image via Shutterstock
Read more about
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.