- Traditional investors often hold onto real world assets (“RWAs”) with the expectation that their risk factors are known and manageable, while avoiding digital assets because of potential volatility and uncertainty about what actually underpins their risk factors
- Utah-based Diamond Lake Minerals Inc. is building a vertically integrated portfolio of noteworthy subsidiaries that will be infused with security token offerings as digital assets bridged to RWAs
- DLMI is working in conjunction with the U.S. Securities and Exchange Commission, SEC-registered digital asset exchange INX, to provide heightened security to digital offerings
- DLMI’s portfolio will include industry-agnostic holdings that span real estate, wireless technology, and entertainment — offering investors a variety of potential opportunities directly connected to real world assets
Salt Lake City-based Diamond Lake Minerals (OTC: DLMI) is dedicated to providing modern investors with a bridging strategy for accessing meaningful digital assets as a healthy part of their investment portfolios.
Digital assets can be discouraging to traditional investors comfortable with putting their money into established real assets that don’t appear to have the amount of risk and volatility associated with traditional digital assets. Nevertheless, the growing market acceptance of digital assets and the sometimes robust profits that digital assets return can be increasingly appealing to those who put serious thought into their investment strategies.
Diamond Lake’s mission builds on the belief that digital assets are worth having so long as they’re operating within a regulated environment. DLMI has partnered with the U.S. Securities and Exchange Commission’s registered security token exchange INX to provide a framework that adheres to guidelines set by U.S. regulators to create a much greater sense of confidence to all market participants.
Diamond Lake’s approach is to build a vast portfolio of vertically integrated subsidiaries in an industry-agnostic manner, infusing each holding with a security token offering (“STO”) so that investors in their real-asset subsidiaries can simultaneously enjoy the benefits of an associated digital asset.
Security Tokens Should Not Be Confused With Tokenized Securities
Tokenized securities simply take the long-standing concept of securities investment and add additional conveniences associated with blockchains (such as improved settlement, greater transparency, more flexibility, and a broader reach). Security tokens, such as those offered by DLMI, share characteristics with securities but they are a new concept, They are created on-chain, for on-chain purposes, enabling new forms of financing, user engagement, investor reward and project governance on rails that didn’t exist until a few years ago. They key, however, has been the need for regulatory clarity, as industry magazine CoinDesk has pointed out (https://ibn.fm/1dY27).
Diamond Lake’s partnership with INX takes the regulatory concerns out of the STO investment.
“There’s been great wealth created with these other crypto types of meme coins and other types of digital assets that don’t operate in a regulatory environment but you look at some of those projects and you have no idea who runs those projects, who built those projects. We don’t even know who built Bitcoin, for example, there’s no definitive person that actually designed and put that in the market,” Brian J. Esposito, DLMI CEO, said in a Jan. 31 interview with Proactive Investors (https://ibn.fm/ELJ7W).
“You look at the wealth of the world that’s in these types of crypto currencies — I love that it gives people the ability to create wealth, but it scares me that there’s so much money there that’s not protected by people or for people and by regulatory,” he added. “From our framework and our guidelines, here’s a way to be in that space; here’s a way to do it, what we believe is … a way to bring traditional securities, which is stocks and bonds, into a vehicle like ours.”
Esposito also addressed some of the potential types of subsidiaries DLMI could acquire, create or build.
“For us, we see things like digital, fractional ownership in physical gold and silver, we see real estate has great potential opportunities, we see great business models like in the wireless technology space — anything that’s a really good asset for our balance sheet and anything that we can create great profitability and returns for, that’s what we want under our DLMI umbrella,” he said. “We want to always create really safe business transactions. We like to do these things with seasoned entrepreneurs and professionals who’ve got great accounting and regulatory and compliance.”
In addition, for information on the company’s security token SEC regulated exchange partner INX, and the development of the INX Way, visit https://www.inx.co/inx-ebook/. This free security token bible, written with the SEC on the rollout of security tokens and the future of digital assets, will greatly deepen your understanding of security tokens.
NOTE TO INVESTORS: The latest news and updates relating to DLMI are available in the company’s newsroom at https://ibn.fm/DLMI