BULLEBLOCK



A Revolutionary Change to Financial Markets



WHAT IS A"SMART" SECURITY?



A BETTER MOUSETRAP



"Smart" securities are recent phenomena that can now be used for new client benefits. They are simply a blockchain-based digital interest that represents an ownership claim in an underlying asset which may include real estate, equities, debt, private placements, or some other instrument of value. They offer the flexibility of alternative investment structures and private placement but with liquidity and the ability to offer fractional ownership of shares. This allows for investors to have greater portfolio diversification and for entrepreneurs to raise money in a global marketplace.



EFFICIENCIES IN ISSUANCE



Unlike their traditional counterparts, "smart" securities can be issued quickly and at a fraction of the cost. Because security creation can be done so efficiently, it opens up the advantages of securitization strategies to new industries and clients. Furthermore, these securities have automated compliance, settle close to instantly and store their records on the blockchain which dramatically reduce administrative, transactional, legal and lifecycle costs.



FOLLOW THE RULES



"Smart" securities follow the same SEC rules as any other private offering. They are simply in digital format. Not only to they follow regulatory requirements, but they can be programmed to issue dividends and control governance. Smart contracts and their associated securities will revolutionize our financial markets and redefine how we look at private assets.



BENEFITS OF "SMART" SECURITIES





CAPITAL FORMATION





"Smart" Securities have opened up the door for a truly global financial marketplace to exist. Compliance is programmed into digital security and includes everything from liquidity limitations to investor suitability requirements. This makes it possible to conduct a global offering and follow the rules of each country it is offered in without the need for legal representation. This, in turn, gives everything from energy savings projects to entrepreneurs access to a global investor network. This structure, combined with the ability to securitize new things, has the potential to foster growth by allowing investors to lawfully participate in opportunities across the globe.



FRACTIONAL OWNERSHIP





Security tokens make dividing large assets and the revenues they generate into many parts easy and economical. This fractional ownership provides liquidity for previously illiquid assets and securities. This lowers the barrier to entry and reduces the capital requirements necessary to participate. It also creates efficiencies in pricing in that as the market grows, new assets can get the benefit of the liquidity premium and billions of value will be unlocked.



SMART CONTRACTS





Smart contracts allow securities to be programmed to do things such as pay dividends, control ownership and employ governance and other rights of shareholders. Automated compliance, better transaction records and near instant settlement are made possible. We are just beginning to test their capabilities and the best solutions have not been invented yet.



LIQUIDITY





Instead of the multi-year and complex exit strategies typical in traditional private placements, "smart" securities are liquid after the maximum required one year regulatory lockup on digital Alternative Trading Systems. Private securities have never been able to trade on such and open and fluid marketplace. Furthermore, "smart" securities can be traded 24 hours a day, 7 days a week and 365 days a year with near instant settlement.



COST EFFICIENCY





"Smart" securities are much more cost efficient than their traditional counterparts. More than just issuance costs are reduced. With fewer intermediaries involved expenses fall dramatically. Furthermore, with much of compliance and settlement executed by smart contract and artificial intelligence transaction, administrative and legal costs during a securities life cycle drop dramatically. Records are stored more accurately on the blockchain thereby eliminating most shareholder disputes. Small groups can now compete with the largest of Wall Street firms with an extreme cost advantage.



NEW STRATEGIES





"Smart" securities give you many new options for time, labor and cost efficiencies in your business, investment or real asset portfolios. From personal holdings to those of alternative asset managers, new ways of optimizing portfolio performance are just now being implemented. The Securyblock team will help you maximize these new benefits.



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