LEVIAS: Security Token Offerings for Future Economies

CEO - Keiko Tanaka, LEVIASCEO - Keiko Tanaka
Today, Blockchain technology is no longer a just a buzzword but has grown to become a major disrupter rattling every industry from agriculture and manufacturing to healthcare and insurance. Blockchain applications enable scrutiny and optimization of processes in supply chains that traditionally fall outside the spectrum of enterprise solutions as industries explore the technology to reflect their own respective operational and strategic needs. That said, the financial services sector was tipped to experience the best of both worlds--most disruption and significant investment in blockchain solutions. With the creation of digital assets—a new token economy will make the financial industry more accessible, cheaper, and faster, thereby possibly unlocking trillions in currently illiquid assets and vastly increasing the volume of trade. Furthermore, the opportunities presented by security tokens will help the industry to re-shape an environment to provide greater efficacy and transparency for trading and post-trading processes.

In recent years, regulatory issues have emerged as a central concern for few industries as they find it more difficult to identify favorable circumstances to implement blockchain solutions in their business. However, security token offerings (STOs) combine the benefits of blockchain for financing but in a regulated environment, with the possibility of exchange based and asset-backed structures increasing potential appeal. This is where LEVIAS is revolutionizing the Japanese fintech industry by fusing cutting-edge technologies such as blockchain, AI, and IoT to create an unprecedented new economic and social value chain. The company provides reliable data governance infrastructure systems to clients (third parties) and create innovation through digital transformation (DX) from the development of potential markets. LEVIAS is the first company to conduct STO legally in Japan and secondary transactions (transfer of assets) utilizing blockchain technology with its J-STO platform. "Our mission is to cooperate with leading partners beyond industry barriers, to facilitate innovation with the development of new technologies and services," says CEO of LEVIAS, Keiko Tanaka.

Our mission is to cooperate with leading partners beyond industry barriers, to facilitate innovation with the development of new technologies and services

LEVIAS' J-STO platform is Japan's first information and communication management system that uses security tokens to connect the issuers and investors of securities and designs new economic value by liquidating assets. The company's platform enables users to manage information on various contracts and assets, which were previously managed in written form and other analog ways, to be managed in a highly reliable digital format by utilizing blockchain and AI technology. Users will be able to perform a series of agreements and acceptance procedures accompanying each contract by a program (smart contract) defined under the framework of the current Japanese law. Thus, reducing the number of human errors by speeding up procedures related to asset transfers.

Asset Holders will receive security tokens in the form of electronic vouchers recorded on a private blockchain in proportion to the equity interest as proof of contractual status. The Security Tokens incorporate evidence information such as investment contracts into an information processing program (smart contracts) relating to the transfer of contractual status. A security token holder will be able to view the information about the owned assets at any time on the user-dedicated interface on the J-STO platform. Users can also apply for bilateral transactions related to the transfer of contractual status, perform a series of agreements/acceptance procedures accompanying various contracts, and automatically modify the name list of multiple assets. The information on the transfer of these assets will be recorded by blockchain traceability and stored as trail information for AML. In addition, by applying AI technology, various autonomous programs are monitored continuously for regular and proper operation. Suspicious transactions are detected and met with a countermeasure program to promote work-flow efficiency. The final element of the platform is the creation of a new concept of liquidity. Sustainable development of security tokens in DLT will rely on a robust ecosystem coupled with a well-defined regulatory framework and compliance. LEVIAS brings a new approach and innovative mindset for new entrants and expertise of the existing market infrastructure operators. To reduce the complexity of procedures and cost performance in transferring assets, J-STO's platform aims to create a new environment to connect users through the Internet and apply for transactions according to compliance procedures. This new approach will probably disrupt current stakeholder roles and also prompt the development of new ones.

Despite the fact that STOs will provide a significant business opportunity and financial innovation to financial markets, investors and issuers, the structure remains at an early stage. Regulators are yet to provide comprehensive rules and requirements to cover the STO related activities, such as enabling an appropriate linkage between virtual assets and any underlying assets. Furthermore, given that Security Token trading activity can be borderless, global regulators need to cooperate in a consistent approach and method in regulating and supervising STOs.

Established in 2018, LEVIAS aims for an IPO by 2024, contributing significant growth to the Japanese economy by taking advantage of the strengths of venture companies, such as good “footwork” and a sense of speed, to solve various problems including the issues mentioned above. "LEVIAS will focus on building new data governance one by one regarding the connection between Japan and other countries by building a de-facto standard environment and acting as an international hub," concludes Tanaka.


Notice of Completion of Fundraising through Third-party Allotment and J-STO Equity

We are pleased to inform you that we have implemented a third-party allotment of capital as follows.

1. Type and number of shares: 391 common shares

2. Payment amount of shares: 220,000 per share

3. Ratio to total shares issued: 6.69%

4. Total payment amount: 86,020,000 JPY

5. Capital after increase (including capital reserve): 226,020,000 JPY

6. Fundraising method: Third-party allotment

7. Payment date: December 21, 2020

Purpose of the capital increase:

• Strengthening the development system for LEVIAS DEEP CLOUD and J-STO Platform.

• Further expansion of services, such as revitalizing the regional economy, providing technical support for developing countries, and focusing on sales activities related to DX solutions.

What is J-STO Equity?

"J-STO Equity" is our brand name, which means applying blockchain technology to raise funds by issuing new shares, change the shareholder' registry, manage and process information related to shares.

Via "J-STO Equity", the same number of stock-type security tokens (electronic vouchers recorded on the private blockchain managed by the Company, hereinafter referred to as "LEVIAS Equity Token") have been granted to the person who subscribed to the new shares. Our shareholders will be able to view information about their shares at any time via the Internet on the dedicated interface (My Page of the J-STO platform) developed by our Company. Users of the J-STO platform will also be able to buy and sell their shares and request approval of the transfer of those to the Board of Directors. The Company's shareholder registry is managed on blockchain (private blockchain of the Company) that constitutes the J-STO platform and will be implemented on it in accordance with appropriate procedures if the Company's shares are transferred. The shareholders' registry will also be automatically changed by the program (smart contract).

Japan's first public stock option offering "J-STO SO" has been issued by utilizing blockchain technology

We are pleased to announce that on June 3, 2020, we have issued a security public offering (stock options) utilizing Japan's first security tokens.

Levias Inc. (CEO: Keiko Tanaka; 4F, 2-7-7 Shiba Daimon, Minato-ku, Tokyo, hereinafter referred to as “Company”) which aims to achieve global innovation, has completed the issuance of stock using security tokens, which is the first case in Japan, through its own brand “J-STO” *.

* J-STO is a system that manages various contracts and assets that were previously managed in analog way by a reliable digital method implemented blockchain and AI technologies. It is the Company’s brand name (trademark pending). In J-STO system, the security tokens developed by the Company are electronic vouchers (recorded on blockchain) showing that the ST holders have the rights or assets under a specific contract.

In J-STO SO, shareholders can manage and check the information regarding the Company's stock online on a dedicated interface (My Page of the J-STO Platform) developed by the Company.

The J-STO platform users can trade stocks, and request approval for stock ownership transfer to Company Board of Directors through this platform. The shareholder portfolio is managed on blockchain (private blockchain managed by the Company) that constitutes the J-STO platform. If the Company's stocks are traded in accordance with proper procedures, a program (smart contract) implemented on the blockchain will automatically make an entry for shareholders name change.

In addition, by applying AI technology, a series of various autonomous programs are constantly monitored for proper operation, and if abnormalities are detected, a countermeasure program will be activated to promote efficient workflow. The Company aims to promote a DX (Digital Transformation) society and create a smarter future by building a model case for data governance that utilizes blockchain and AI technology.

LEVIAS Inc. launched the world's first autonomous decentralized network system "LEVIAS DEEP CLOUD" (closed beta version)

Levias Inc. (Representative Director: Keiko Tanaka, headquarter: Minato-ku, Tokyo, hereinafter referred to as "the Company") announced the launch of the world's first autonomous decentralized network system "Levias Deep Cloud" in the fintech industry.

We designed and developed this system utilizing blockchain and AI technology, collaborating with experts, financial companies and law firms.

With the release of Levias Deep Cloud and future updates, users are able to apply for various contracts and asset transfers (secondary transactions) through security tokens by J-STO, linked with overseas financial systems. It will be possible to execute payments with electronic currency for the conclusion of contracts on smartphones.

What is J-STO?

It is Japan's first information and communication management system, in which information on various contracts and assets that have been managed in writing and other analog ways, can be managed in a highly reliable digital system using blockchain and AI technology under the framework of the current Japanese law. J-STO is a system that activates an automatic program embedded in security tokens (electronic voucher recorded on the blockchain as proof of contractual status) on a consortium-type blockchain (hereinafter referred to as “Levias Chain”) developed by our company. With this system it is possible to apply for transfers, perform a series of agreement acceptance procedures associated with various contracts, and automatically rewrite the asset holders name list (smart contracts).

What is Levias Deep Cloud?

Levias Deep Cloud is a core system required for various distributed software groups (electronic contract, electronic money payment, face ID, eKYC, Dapps, Defi contract, AI behavior recognition, AI automatic conversation program, etc.) linked to Levias Chain to autonomously link data.

Main services made possible by using Levias Deep Cloud:

• Use of LEVIAS Chain (consortium type block chain)

• Development and use of the LEVIAS Chain Wallet app

• Development of original platform utilizing J-STO API

• Development and use of security tokens

• Development and use of programmable money

• Development and use of Dapps (autonomous decentralized applications) related to personal information management

• Development and use of Defi smart contracts

• Development and use of AI behavior recognition and data marketing tools

• Development and use of AI automatic conversation program

We have been developing new data governance utilizing blockchain and AI technology, including the development of Japan's first model case using security tokens. In the future, we will further strengthen the promotion of FinTech digitalization and aim to contribute to the Japanese and international communities toward the realization of a future society of smart cities.

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Tokyo, Japan

CEO - Keiko Tanaka

LEVIAS aims to bring innovation with the latest technology in the fintech sector. The company consists of a team of experts of programming, cryptography, blockchain, artificial intelligence etc. With its expertise, LEVIAS provides clients various digital technologies such as blockchain, STO platform, decentralized exchange, cryptocurrency issuance, payment system etc. The company’s mission is to cooperate with many partners beyond industry barriers, to develop innovation with the development of new technologies and services