Cryptocurrency

Swiss Crypto Leader Believes Stablecoins and Security Tokens Represent the Next Phase of Crypto Innovation

January 16, 2019

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Swiss Crypto Leader Believes Stablecoins and Security Tokens Represent the Next Phase of Crypto Innovation

Founder and board member of the Bitcoin Association Switzerland, Luzius Meisser, said in an interview today that he believes stablecoins and security tokens will factor prominently in the next phase of crypto innovation. The interview was conducted by Cointelegraph at the Crypto Finance Conference in St. Moritz, Switzerland.

A prominent figure in the crypto scene in Switzerland, Meisser sits on the board of directors of the crypto-centric asset management and brokerage firm, Bitcoin Suisse AG.

Meisser also said he thinks the ICO (Initial Coin Offering) landscape will change considerably, as investors in ICOs have very few rights, especially when compared to equity investors — like those in the stock market, where investors own a part of the company — debt investors — like those in the bond market, where investors have priority in terms of payment if the company were to bankrupt.






In order to change this paradigm, according to his thinking, security tokens — those that represent a share of a given company — will become more common.

“I would say payment and utility tokens are more or less over,” he said, “Sometimes they make sense.”

It should be noted that this new security token market would come under even more scrutiny than the current ICO market, in that the tokens would be, as their name suggests, securities, unlike now, where whether a token is a security or not is often a gray area. Last year, the SEC announced Bitcoin and Ether would not be considered securities, but that many other coins that had an ICO would be.

The one exception Meisser provides in terms of non-security tokens that will have successful releases is stablecoins, which are tokens that are backed by a reserve asset, for example, the U.S. Dollar. His reasoning mostly has to do with larger institutions being able to invest their fiat currency in blockchain.

“Stablecoins are a precondition to enable average companies to bring their equity onto the blockchain,” he said, “Because if they issue bonds or shares they want to do so against U.S. dollars, euros or Swiss francs, because those are the currencies they calculate in, not Bitcoin or Ethereum.”

This sentiment echoes that of Cameron and Tyler Winkelvoss — the Winkelvoss twins — who founded leading American crypto exchange, Gemini, and more recently, in September of last year, the Gemini dollar (GUSD), which is based 1:1 by the U.S. Dollar.