Petros Law Group
What We Do
Who We Are
The Petros Law Group is a fintech law firm that primarily focuses on commercial implementation of distributed ledger technologies (“DLT”) and representing global innovators in blockchain to ensure they are compliant and strategic in raising venture capital, building corporate infrastructure, and bringing their blockchain product to market.
The Petros Law Group works very closely with techpreneurs and business entities operating in traditional marketplaces (i.e. real estate, product management, etc) who wish to integrate DLT into their existing business infrastructure to optimize efficiency and accountability.
Whether it’s tokenizing assets or issuing digital representations of ownership on the blockchain, Petros Law Group provides a broad spectrum of services throughout the United States and across the globe.
Through comprehensive legal representation and ongoing regulatory compliance services, the Petros Law Group helps clients navigate complex and uncertain regulatory landscapes that govern this burgeoning digital asset class.
Peter D. Hatzipetros
President & Founder
The New World of Blockchain
Distributed ledger technologies have forced us to rethink what is possible during the exchange of value, regardless of that value’s form. The self-executing performance of smart contracts combined with programmable code in digital assets truly exemplify the dynamic underpinnings of the fundamental components of blockchain. Small pieces of programmable code can digitally enable the performance of valuable contractual deliverables without human engagement, helping automate the trustless transfer of our digital assets.
A blockchain is a decentralized ledger of transactions across a peer-to-peer computer network. Blockchains are ‘decentralized’ because all users authorized on the network can have their own synchronized copy of the ledger. They can all see and confirm that a transaction has occurred and has been recorded, at the same moment in time. Instead of connecting to a central authority through a hub-and-spoke model, then, every participant has a computer linked to other participants. The attraction of blockchain to the private equity sector and institutional investors is a matter of security and unchangeable recordkeeping — which ultimately results in increased operational efficiency and failproof monitoring of investments.
A security token is a digital representation of traditional, private security interests such as a stock, bond, or debt instrument. It could represent a share in a company, an interest in a fund or a trust, a member share in an LLC, or promissory note to repay a debt. Essentially, you’re taking something that today is transcribed in writing on paper, and converting it into a programmable digital code that is represented by digital tokens.
A security token protocol focuses on creating tokenized representations of existing debt vehicles and automating the terms in an existing debt agreement through smart contracts. The role of a protocol for security debt tokens will be to enable programmable interactions between participants in an off-chain debt vehicle in the form of on-chain smart contracts.
A smart contract is a self-executing program, or digital contract, that facilitates, verifies, and enforces the negotiates terms or performances set forth in a legally binding contractual agreement. Smart contracts allow for verifiable transactions— such issuing asset-backed tokens collateralized by debt— to take place without third parties intermediaries. These transactions take place in a transparent and secure environment conducive to the production of an immutable record of transactions that incorruptible— or, as we defined earlier, the blockchain.
The use of smart contracts, security tokens and blockchain combine to power a system strong enough to withstand uncertainty and unruly influence. It promotes a systematic strength to prevent manipulation by those who might attempt to circumvent the contractual obligations which bind the parties to an agreement, for whatever reason.
A security token protocol focuses on creating tokenized representations of existing securities vehicles and automating the terms in an existing financial instrument or agreement through smart contracts. The role of a protocol for security tokens will be to enable programmable interactions between participants in an off-chain vehicle in the form of on-chain smart contracts.
Empowering securities through defined programmable terms has endless application. Issuers can design powerful, self-executing processes and rights into the tokenized instrument which clearly define an investor’s capital contribution, as well as the terms and conditions of that investment, and remove any question of law or fact which call into question an investor’s right or claim to the investment in-connection with the issuer’s business venture.
Cryptocurrency law reform is no longer moving at a glacial pace. The techprenuers and blockchain enthusiasts who make this digital-asset class special, are now vulnerable to shifting legislative enforcement. The help and guidance of qualified legal counsel is essential to mitigating potential risks that can eviscerate a blockchain project before its innovation can be shown to the world.
Peter Hatzipetros, ESQ
President & Founder