Petros Law Group

 

TOKENIZATION

A security token is a digital representation of ownership of any asset traditionally categorized as a “private security.” It can represent shares in a company, real estate, an art collection, and even an interest in an investment fund. In its simplest terms, the process of “tokenizing” an asset essentially converts proof of ownership on paper by using blockchain technology to generate a security token uniquely coded to enable the owner to digitally track their tokenized asset.

Security tokens are on pace to become the first type of digital-asset to bridge the gap between established institutional investors and the new world of distributed ledger technology (DLT). Part of the magic of security tokens is that, at least conceptually, they can be seen as programmable, globally tradeable representations of existing financial products. As the security token space evolves, we are likely to see more tokenized securities take the form of established financial vehicles such as bonds, debentures, derivatives and stocks.

However, for that to happen, the existing generation of security token protocols needs to incorporate some of the underlying mechanics that remain at the epicenter of traditional financial assets. Part of that core foundation relies heavily on legal compliance, both domestically and globally.

So what are the benefits of tokenizing securities through blockchain technology?

Lower Fees...         Automated service functions...         Free market exposure...         Faster deal execution...         Lack of financial institution manipulation...          Lower Fees...         Automated service functions...         Free market exposure...         Faster deal execution...         Lack of financial institution manipulation

 

ABOUT THE FIRM

The Petros Law Group focuses on commercial implementation of digital asset technologies and representing global innovators in blockchain seeking to raise venture capital, build corporate infrastructure, and efficiently bring their blockchain-based products to market.

Through comprehensive legal representation and ongoing regulatory compliance, the Firm is dedicated to helping clients navigate the complex and uncertain regulatory landscapes governing Security Token Offerings, Initial Coin Offerings and other business activities regulated by agencies such as the SEC, CFTC, IRS, FINRA, and FinCEN.

Located in Manhattan's Flatiron District, the Petros Law Group also counsels businesses that operate in traditional marketplaces- such as commercial real estate developers and consumer merchants- who wish to integrate a digital securitized asset asset model into their current infrastructure.

Diligence is vital when building the necessary architectural frameworks required by any business seeking to benefit from the utilization of blockchain technology. The Petros Law Group places a strong emphasis on exploring all avenues of opportunity while mitigating any potential risks that may occur along the way, from inception to fruition.

PARTNERSHIPS

SERVICES

Petros Law Group provides bespoke legal blockchain constultation services designed to create innovative strategic business infrastructures that allow clients to compliantly tokenize assets and securities while leveraging distributed ledger technologies.

Unlike utility tokens, the scope, use-case, and functionality of security tokens enable these digital assets to behave in accordance with conditions dictated by their underlying assets. Security tokens are programmed to digitally imitate and reflect the economic behaviors of traditional securities. ’

Our firm analyzes the smart contract protocols programmed into a security token to form a legal opinion to determine how regulators, such as the SEC, will categorize the tokenized assets of an STO. The Petros Law Group strives to maximize the opportunity to scale a tokenized crypto-asset through traditional investment vehicles.
Our Firm will guide you throughout the duration of you security token offering to ensure full compliance with all rules and regulations when raising capital through a crypto-funding vehicle.’

We also prepare and file all required documentation with the proper agencies governing a particular STO, specifically, the registration of a security token, or seeking an exemption under those provided under the Securities Act, including: (i) Regulation D (506b/ 506c), (ii) Regulation S, (iii) Regulation A/A+, and (iv) Regulation CF under the JOBS Act.
When it comes to Security Token Sale Agreements, private placement memorandums, privacy policies, and terms of service, our Firm methodically goes through every detail with a fine-tooth comb. These policy contracts exist to protect not only our clients, but our client’s contributors and community members. Our iron-clad contracts are straightforward, and are written in way that make traditionally-complex legal jargon a simple and comprehensive read for all.
A well written whitepaper is the lifeblood of any token generation event or blockchain-based business. We perform a thorough analysis of your project’s Whitepaper and provide a breakdown of any potential legal issues and risks related to the project, as well as any other terms and conditions.
Our firm helps with the incorporation, administration and management required by any successful token project in order for it to thrive in the long term. Through its partners-network, the Petros Law Group assists STO projects with accounting & bookkeeping, tax declarations, insurances, secretarial services, domiciliation services, payments, payroll.
Escrow transactions are one of the most reliable ways to overcome volatility in the cryptocurrency market and to ensure that trades are executed securely, timely, and legally. Petros Law Group offers the following escrow services with the goal of facilitating safe and secure crytpocurrency transaction between ready, willing and able buyers and sellers:

  • • Comprehensive general counsel representation and ongoing compliance.
  • • Formation of cryptocurrency investment trusts and funds.
  • • Offering structuring and private placement memorandum.
  • • Preparation of securities registration statements for ICOs, STOs and its projects.
  • • Offshore entity infrastructure alternatives.

"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