Security Token Advisors (STA), the “original” consulting firm and advisory group in the tokenization space, is pleased to announce the unveiling of its recent infrastructure client and now vendor OvenueTM, a deep technology platform that “bridges the gap between real-world assets and non-traditional finance (also referred to as decentralized finance, DeFi).”
Using its own proprietary AI-based valuation engine in conjunction with its advanced blockchain-based solutions, Ovenue offers “a robust technology protocol for real-world asset valuation, tokenization and monetization.”
Ovenue’s journey includes a “proprietary step-by-step process” for asset Valuation, Tokenization and MonetizationTM:
- Identification: owners select their desired asset(s) to onboard, both tangible and intangible.
- Valuation: through a recently acquired AI-powered portfolio management and analytics technology, Irident, Ovenue’s valuation software enables asset owners to generate a Fair Market Value based on historical and predictive metrics. By integrating predictive analytics and asset management capabilities along with proprietary and third-party data sources and solutions, Ovenue plans to enhance the fidelity of the real-world asset valuation and tokenization experience for its customers.
- Isolation: Asset owners also have the optionality of separating the asset into a Special Purpose Vehicle (SPV), a type of holding company, to legalize asset ownership. The SPV is a distinct company with its own assets and liabilities, as well as its own legal status. Usually, they are created for a specific objective, often to isolate financial risk, and particularly useful for intangible assets.
- Tokenization: assets are converted into asset-backed tokens (a type of NFT) creating a digital twin of the asset(s) on the blockchain. If a SPV is created, then the legal entity becomes subsequently tokenized. These NFT’s represent a unique digital identifier that cannot be copied, substituted, or subdivided, and is recorded in a blockchain, which is used to certify authenticity and ownership, either of the asset directly, or the SPV (which follows corporate law).
- Monetization: assets are listed in an open marketplace or a private Web 3.0 commerce storefront (referred to as o-Commerce, O for Ovenue) for:
- Direct asset sale
- Asset collateralization for future financing, including Ovenue Finance, a non-traditional asset-backed finance protocol and technology
- Asset licensing for royalty
- Web3 commerce storefront listing for asset inventorization
- \Balance sheet enhancement
Below are a few use cases for Ovenue’s platform:
- Intangible Assets & Intellectual Property (including contracts, franchise agreements, copyright, trademarked brands, receivables, royalty deals)
- Commodities & Natural Resources
- Ventures & Private Equity
- Real Estate & Infrastructure
- Financial products including loans
- End-to-End technology licensing opportunity for B2B or financial institutions
Andry Tanusdjaja, Co-Founder and Head of Operations at Ovenue, said:
“Ovenue enables asset owners and businesses across all industries to accurately value, tokenize and unlock business assets. Ovenue’s platform can be licensed by B2B or institutions, to assist them with their digital transformation strategy and goals, including asset management.”
Ovenue’s platform and financing protocol is also “appealing for small and medium-sized enterprises (SME) that constantly face financing constraints.” Providing this business group with control over their own liquidity through asset-backed financing on the blockchain can “serve as a powerful use case for businesses.”
As of Q3 2022, Ovenue “has over USD 400 million of Tokenized Assets Valued (TAV) on its marketplace and platform, including luxury condos, reforestation rights, published novel rights, consultation agreements and franchising rights.”
Ovenue offers “a very unique solution that could also complement an issuer raising capital via security token offers (STO) if the asset owner chooses to do so. Should the asset owner wish to raise fresh capital via Security Token under Reg CF, Reg D, or Reg A, for example, they can issue a security token offering while also still leveraging Ovenue’s services on tangible and intangible assets for either 1) additional or bridge financing or 2) transparency into its asset(s) valuation, which may prove to strengthen the pitch to investors throughout the capital raise.”
Peter Gaffney, Head of Research at Security Token Advisors, describes the overlap as:
“The ability for Ovenue to act as a pseudo benchmark for security tokens to trade against and reflect the proper Fair Market Value. It’s difficult to have a flourishing secondary market of security tokens without something to compare the ever-fluctuating token values and market cap against to some extent, much like ETFs all track their own respective indexes. To be able to leverage a combination of compliant capital raising via security tokens and decentralized valuation and financing capabilities through Ovenue will unlock additional opportunities, and will greatly appeal to clients and companies looking to brand themselves in a more Web 3.0 light.”
For more details on this update, check here.