Raise, A&K Partner on Africa’s First Security Token Framework

[Ozark]

Tech startup Raise and corporate law firm A&K are to introduce some legal clarity into Africa’s security token space.

Bahamian-Kenyan technology startup Raise has joined forces with Kenyan corporate law firm ALN Kenya-Anjarwalla & Khanna (A&K) to launch Africa’s first security token framework.

According to a press release distributed by several local news outlets, the project will include the development of contract templates, legal definitions, offerings, and technological standards for security tokens that represent ownership of real-world assets, such as property, shares, debt, commodities, fine art, and insurance.

The two companies plan to create and share the security token framework through the African Digital Asset Framework (ADAF). Launched last month under the Pan-African Organization, the ADAF is an open source platform created to consolidate blockchain development standards across the continent.

The partnership was announced by Raise co-founder and CEO Marvin Coleby at the Business for Africa Forum held in Cairo last week. Coleby, a securities lawyer and an authority in digital asset regulation, noted the potential of blockchain and the current lack of adequate sector regulation.

“There is a need for efforts at self-regulation to create frameworks that educate law firms, policymakers and entrepreneurs. Clear frameworks for digital securities can unleash innovation in the security token space and enable SME financing and liquidity for private markets on an unprecedented scale,” he explained.

Coleby added that the partnership with A&K would allow Raise to work with “the best lawyers, entrepreneurs and law firms” from the African Legal Network (ALN), an alliance founded by A&K.

A&K partner Dominic Rebelo commented on the project as follows:

“Our partnership with Raise aligns perfectly with our vision for the future of capital raising and securities trading across Africa and demonstrates A&K and ALN's commitment to provide our clients with a seamless service across the Continent.”

Africa is becoming a significant hub for the growth of blockchain technology. In October, a group of international bankers joined forces to develop a blockchain and cryptocurrency project that would serve as the key element of a cashless transactional system for the continent. During the Thomson Reuters Africa Summit in 2017, African entrepreneurs suggested that blockchain technology could revolutionize the local business ecosystem.


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