Templum raises $2.7 million to launch regulated US ICO exchange

Initial Coin Offerings (ICOs) have so far raised over $3 billion USD this year. Additionally, they have recently experienced increased scrutiny. China, Hong Kong, and other states have issued a complete ban on ICOs, while other governments continue to warn cryptocurrency investors to be cautious in their dealings. All digital tokens such as Ether are to be considered to be financial securities, and as such, their sale is subjected to the requirements of the federal securities law.

Earlier this month, the Blockchain-based startup Templum launched a regulated US exchange for ICOs, also called Templum, in partnership with the broker-dealer Liquid M Capital. On Thursday, the New York-based startup announced that they have raised $2.7 million in a new seed funding round and plans on using the funds for operational expansion and product development. The latest funding round was led by Raptor Group, Galaxy Investment Partners, Blockchain Capital, and First Minute Capital.

“Templum has entered the ICO market at the ideal time when compliance and investor protection are on the minds of all industry participants. Their solutions provide much needed certainty regarding regulatory obligations, safeguards to protect investors and a vital secondary marketplace for liquidity,” states Bart Stephens, Blockchain Capital co-founder, and managing partner.

It was a first for Overstock’s ERC20 compliant token, tØ, as regulated token trading was introduced to the firm just last month. In order to develop primary as well as secondary markets around blockchain-based tokens which are considered to be securities, firms like Templum and tØ are utilizing an alternative trading system (ATS). This so-called ATS is subject to regulation from agencies, such as the Financial Industry Regulatory Authority (FINRA) and the SEC. The aim of such startups is to attract more seasoned stakeholders by promoting regulated trading systems.

Templum CEO and founder, Chris Pallota stated, “ICOs offer innovative organizations an efficient alternative for raising capital. However, ICOs in their current form can be highly risky for issuers and investors. Templum will provide the necessary transparency and accountability, as well as investor protections, to reduce risks and encourage more widespread acceptance of ICOs.”

“We will continue to advocate for the advancement of the digital asset community that is balanced with the need for regulatory compliance and investor protection. We believe narrowly tailored remedial relief solution for these issuers and investors will support the innovative ICO model while helping issuers meet the necessary regulatory requirements within an established securities framework like the one we offer,” Mr. Pallota summarized.