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By Daniel CreechJune 16, 2020

A dividend milestone for digital securities

Lottery Numbers

Even if you’re new to investing, you’ve probably heard of dividends…

For every share of stock you hold (assuming it pays dividends), you’re paid a small percentage of company earnings. These payments are often made in cash or stock, but how and when you receive your payment is entirely up to the company whose shares you hold.  

However, in the world of digital securities, investors are being given more control than ever before… and a different kind of dividend payment might soon become the new normal.

Unlike utility-focused cryptos, which serve a function vs. offering value, digital securities are like holding a stock… They give you ownership in a company or asset. And in some cases, you can even receive dividends, royalties, or other distributions as a token holder.

With that in mind, imagine being able to choose how your dividend is paid instead of just receiving one?

Thanks to Securitize, the first SEC-registered facilitator of digital security royalty payments, that fantasy is now a reality…

If you’re not familiar with Securitize, the 3-year-old company has quickly become the trusted platform for security tokenization… It’s a proven innovator and is leading the charge in taking digital securities mainstream. It’s also the very platform we at Curzio Research used to launch our Curzio Equity Owners (CEO) token.

As for the digital security that made this breakthrough royalty payment via the Securitize platform… enter Austin-based Lottery.com.

As the name of the company implies, Lottery.com gives users a way to play lottery games and drawings from the comfort of their smartphone. Its app verifies a user’s age and location, and then lets them legally play and purchase lotto tickets.

The company’s LDCC security token was created as a way to turn these lotto sales into funds for humanitarian and charity efforts… and the token’s first-ever royalty payment was just paid to token holders. 

The distribution was made entirely on the blockchain—another industry first—and investors could choose how the royalty was paid. These options included 120 fiat currencies, cryptocurrencies, and even stablecoins (digital securities backed by actual currencies).

According to Securitize CEO Carlos Domingo, using the blockchain means payouts and distributions can be done in real time as ownership records are updated… a huge leap from the processing delays we see with traditional stocks and dividend payments.

And although the amount of the royalty payment is unknown, that’s not the point. The takeaway is that this new asset class provides investors with different opportunities and income streams…

In just a few years, digital securities have gone from a fringe asset class facing questions and skepticism to a functioning financial ecosystem that makes traditional investing look slow and obsolete.

Yes, skeptics will point to low trading volume and a limited number of security tokens to choose from, but we’re still in the early stages of this incredible journey. It’s also much cheaper to raise money through a security token offering (STO) vs. the typical high-fees methods of Wall Street.

Over the next few years, investors will have even more options across stocks, bonds, and real estate as security tokenization matures—a win-win for companies looking to raise funds quickly and securely, as well as for investors looking to diversify into this breakthrough digital asset. 

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Daniel Creech is a Curzio Research analyst with over a decade of experience. He writes on macro trends, large- and small-cap stocks, and digital securities. He’s a regular contributor to Wall Street Unplugged, Curzio Crypto, Curzio Research Advisory, and The Dollar Stock Club.

P.S. If you’re not a Crypto Intelligence member, you’re missing out on gains like 66%… 88%… and 42% over the past year alone… with plenty more upside ahead

With some of the best digital security investments today still priced to buy, new subscribers have more than a few ways to put their money to work… Here’s how to get started.

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