CyberTrust, a Luxembourg-based financial services company, today announced key dates and sales terms for its new Crypto-Asset Backed Securitization (CABS) token. The new Open Securitization Platform, scheduled to launch in Q1 2018, will securitize crypto assets and offer crypto securitization as a service for the first time in history. The new CABS token will permit the securitization of one bitcoin or the equivalent quantity of 2 other cryptocurrencies at a cost of approximately 2-2.5%. This contrasts with a current cost of approximately 30-40% in the market.
The token will use the Ethereum blockchain and will be listed on major crypto exchanges. The token pre-sale is planned for November 14-17, 2017. Following the pre-sale, the ICO dates are planned for November 27 to December 21, 2017. 600,000 tokens are to be sold in total at a base price of 0.6 ether (approximately USD $180) per token. Limited volume bonuses are available – up to 20% during the pre-sale and 15% during the ICO itself, which brings the average cost down even further.
As part of its Open Securitization Platform, CyberTrust will allow CABS token holders to convert their raw cryptocurrencies into Global Crypto Notes (GCNs) as a traditional investment vehicle. GCNs will be fully titled and auditable in collaboration with Ernst & Young. Global Crypto Notes will give their owners a legal claim to their assets, a critical feature which raw crypto doesn’t offer. Moreover, they can do this not only for bitcoin but also for ether and bitcoin cash. Each GCN will carry an ISIN (International Securities Identification Number), allowing ownership and transfer via normal securities settlement channels.
GCNs will compete with shares of Grayscale’s Bitcoin Investment Trust (OTCQX), which is currently the only bitcoin-based security available to institutional investors. As of November 3rd, GBTC shares were trading at a 42% premium over the underlying net asset value.
Scott Freeman, CyberTrust’s Head of Trading, underlined:
“Given the long list of tokens on offer, it’s critical to differentiate yourself by offering a clear value proposition. This token stands out in the sense that its value has a clear benchmark, rather than being just a matter of speculation. One CABS token permits its holder to securitize one BTC, and for that service, the current market price is about $3200. When you compare this to our price of roughly $180, the arbitrage potential is pretty obvious.”
Evgeny Xata, CyberTrust’s CEO, commented:
“Demand for cryptocurrencies on the part of institutional investors continues to far outstrip supply. Given the still low levels of penetration and extremely limited supply, there remains enormous potential for continued exponential growth over the next five years. What is needed is a more flexible supply. Our new platform is designed to address this market demand.”
“This service will help to remove a number of key problems preventing institutional investors from taking full advantage of the cryptocurrency revolution. Moreover, by making securitized crypto more accessible, they will also provide the basis for a wide range of new derivative products such as 3x long BTC. We anticipate significant demand for these derivatives once they become available.”
More information is available in the CyberTrust white paper.