STO Platform

Tokenization platform & marketplace for digital assets in the sports industry

STO Platform

The first platform to democratize digital assets in the sports industry.

Sports D³ is a FinTech platform for the sports industry, which is cheaper to operate, faster to deliver results and overall more efficient than traditional capital markets or financial services industry. It is a 360°-degree solution that enables sports clubs and athletes to raise capital by following a simple step-by-step process i) to digitize assets on a public ledger,  ii) securitize fractional ownership rights to the economic benefits of an asset, and iii) offering them for sale to a broad pool of millions of sports fans and investor (a.k.a. ‘fan-vestors’) in the form of a regulatory compliant Security Token Offering (STO) . Some of the platform features include:

STO Management Tools:

  • Investor profile analysis & whitelisting
  • Secure hosting of STO documentation
  • Automation enabled by digital signatures
  • Investment limits and restrictions,
  • Tools to prevent majority stake accumulation
  • STO progress tracking dashboards
  • Investor relations and Marketing tools
  • 24/7/365 customer support or dedicated Sherpa-advisor

Compliance Tools & Procedures:

  • KYC/AML checks against OFAC and other databases
  • Full ID Verification
  • Wallet forensics
  • Verification of investor accreditation status
  • Wallet, Country, Entity level blocking capabilities
  • Regulation CF, D, A+, S offerings support
  • Marketing compliant with the financial promotion regime
  • SS-20 Token Standard for compliance of transactions on the primary markets
  • The database with business rules to ensure secondary trading compliance

Forrester Research:

“The Most Innovative Projects Will Involve The Tokenization Of Assets. This has nothing to do with cryptocurrencies or tokens used as a payment instrument on blockchain. Representing digital or physical assets as tokens on a DLT-based network allows participants to reinvent processes and develop new business models. This is uncharted territory from both a business and technology perspective.”

“Predictions 2019: Distributed Ledger Technology”. November 7, 2018.

How it works

Sports D³ platform and fractional ownership rights powered by DLT open previously closed markets, e.g. Football Transfer Markets, to millions of sports fans and new investors, making the sports industry truly democratized. Below are some of the benefits of the platform to various participants in the football and sports industry.

For Sports Clubs

Sports clubs can follow a simple step-by-step process to i) securitize fractional ownership rights to the economic benefits of an asset, ii) digitize assets on a public ledger,  and iii) offer them to the investors in the form of a regulatory compliant Security Token Offering (STO). Below are some of the benefits of the platform to the sports clubs:

 

  • New markets and new investors
  • Direct access to capital markets
  • Cashflow management
  • Liquidity without Seasonality
  • Liquidity & Price Discovery mechanism
  • New Level of Fan Engagement
  • New Fan Community Management tools

For Athletes

After registration on the platform, athletes are able to take advantage of the existing templates to set up their very own Security Token. By converting the economic benefits of future performance (e.g. sponsorship contracts, salaries, etc.) into tradable tokens, athletes can offer them to fans and investors in exchange for their investment today. Some of the benefits include:

 

  • Funding for promising young athletes in the early days of career
  • Ability to focus on training and results as a priority
  • No working a double-shift in questionable employment
  • No draining routine of begging sponsors for funding
  • Raise funds, by-passing abusive intermediaries and costly agents
  • Have fun with your Fans: they invested in you and are as loyal as family

For Fans & Investors

Over the past years, the sports industry have been shaped with unequal access to investment opportunities by its participants. With only 22 football clubs in the world traded publicly on the exchanges, average fans and investors were excluded from participation in this closed industry. Sports D³ mission is to empower fans & investors around the world by giving them access to investment opportunities that were not possible before DLT technology. Specifically,

 

  • New Asset Class: investors can diversify their portfolio with Alternative Asset class
  • Profit Participation: Fans get a REAL share by participating directly in the economic benefits of their team’s or athlete’s performance expressed in financial terms.
  • Fan Engagement: Fans achieve a new level and participation once they become investors.

For Sports Industry & Football

Sports D³ platform will enable standardization and transparency of economic transactions within the industry, allowing the regulator and industry authorities to audit and guarantee its fairness and good conduct.  The other benefits of the platform to the sports industry and Football in particular include:

 

  • The democratization of the sports industry
  • Growth in Football popularity among fans who are invested financially
  • Growth as a result of attracted new capital into the industry
  • Enable future of the sports by supporting young athletes
  • Disintermediation and fixing excessive agent commissions
  • Bring greater liquidity to eliminate market inefficiencies
  • Normalization of market forces by removing asymmetries

Accenture:

“New technologies have radically altered front-office functions for investment banks, bringing unprecedented efficiency gains and new business opportunities.”

“Blockchain Technology: Preparing for change.”

The promise of DLT

Why Tokenize?

Advances in DLT technology triggered the origination of a nascent industry of Security Token Offerings (or STOs), which provides sports clubs, athletes, fans and investors with a new range of opportunities to invest and raise capital. Essentially, Security Tokens are converted rights to an asset or to an economic benefit in the form of a programmable token powered by self-executing smart contract on a blockchain.

By definition, Security Token Offerings are fully regulatory compliant with full investor protection under existing securities laws and regulations, which makes STO very different from ICO.

In 2018 Token Offerings, accounted for 11%+ of the global IPO market and are effectively posing a challenge to the current status quo in the financial services industry. According to the World Economic Forum, 10% of global gross domestic product (GDP) will be stored on blockchain technology by 2027. Trillions of dollars of assets and securities are expected to transition to distributed ledgers in the next 5-10 years.

What advantages does DLT technology offer over the traditional financial services industry and capital markets? Here is what you need to know.

11%

Token Offerings' Share
of Global IPO Market today

10%

of Global GDP will be
stored on blockchain by 2027

24/7/365 Market Access

Participants have direct access to market round the clock, 365 days of the year from anywhere in the world. There’s no “pre-market” or “after-hours”, the market is ALWAYS ON.

Instant Execution

The use of DLT and self-executing smart contracts enables instant settlement of transactions instead of the 2-5 day settlement period prevalent today in traditional capital markets.

Low Costs

Lowering a company’s cost of capital by leveraging the benefits of blockchain to raise funds, removing inefficient intermediaries, and bypassing the clutter and redundancy of existing financial industry infrastructure.

Automation

Security Tokens powered by self-executing smart contracts streamline complex conditional transactions via their standardization and automation, including accelerated KYC, compliance, corporate events voting, dividend distribution, and much more.

Greater Liquidity

Tokenization of previously inaccessible assets creates new markets and increases the efficiency of the existing markets via greater liquidity and improved price discovery mechanisms. More accurate asset valuations help determine the true depth of the markets.

Fractional Ownership

DLT technology allows for an unprecedented degree of fractionalizing of the ownership rights of an asset without triggering incremental cost. This makes investing in the asset more affordable to a bigger pool of retail investors, i.e. creating new markets and increasing their depth.

Regulatory Compliance

By following legal frameworks which regulate securities, STOs ensure full compliance of the offerings, while the transparency of public ledgers provides easy access for audit. It gives investors peace of mind that their record of ownership is secure and under full protection of the law.

Decentralized

DLT technology enables a decentralized record of ownership, which eliminates the need for a central authority to guarantee safety or accuracy of such a record. This provides businesses & investors with financial freedom and mobility to participate in the world economy by-passing multiple layers of costly financial intermediaries.

Democratized

Blockchain technology offers a new degree of freedom to businesses looking to raise capital. Distributed and inclusive nature of the technology empowers millions of investors around the globe and makes access to investment opportunities truly democratized, i.e. non-discriminatory.

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