Blockchain investor sets up in Gibraltar

An investment group focused on early-stage blockchain technology companies has set up a subsidiary in Gibraltar, in a boost to the Rock’s efforts to establish itself as a global hub for this growing sector.

London-based Coinsilium Group, which finances and manages companies in this sector, has established a wholly-owned subsidiary called Terrastream to develop a blockchain-powered platform compliant with Gibraltar’s forthcoming regulatory framework for Distributed Ledger Technology [DLT].

Terrastream, which is being advised by Gibraltar law firm ISOLAS, aims to provide alternative funding solutions across multiple industry sectors, including the precious metals and natural resources extractive industries.

“Gibraltar has an impressive track record of successfully identifying opportunities in early trends and has built a solid reputation in the gaming and fintech industries,” said Coinsilium’s executive chairman, Malcolm Palle.

“Coinsilium’s subsidiary Terrastream will be one of the first blockchain-focused companies to support Gibraltar’s regulatory initiative and we expect the DLT regulatory framework to provide investors and industry participants alike with the confidence and certainty to embrace and support the development of many exciting blockchain ventures in the future.”

Gibraltar is expected to become the first jurisdiction globally to develop a regulatory framework for Distributed Ledger Technology covering blockchain.

Blockchain is a technology that records transactions securely and permanently, simplifying processes and potentially slashing costs.

Investment bank Goldman Sachs said the technology, which is still in its early stages of development, could redefine the way transactions are conducted.

“Blockchain has the potential to change the way we buy and sell, interact with government and verify the authenticity of everything from property titles to organic vegetables,” Goldman Sachs said in a briefing paper on the technology.

“It combines the openness of the internet with the security of cryptography to give everyone a faster, safer way to verify key information and establish trust.”

The formation of Terrastream represents the first step in Coinsilium’s strategy of pursuing its own initiatives in blockchain and smart contract technologies.

It follows a recent visit to Gibraltar by the company’s executive directors, which included meetings with senior representatives from Gibraltar Financial Services Commission.

The build and development of the Terrastream platform is expected to be funded from the Company’s existing reserves and the proceeds of a proposed non-dilutive digital token sale, further details of which will be announced in due course.

Gibraltar is set to become the first jurisdiction globally to provide a regulatory framework specifically designed for firms engaging in activities that use DLT for the transmission or storage of value belonging to others, also covering blockchain technologies.

Last May, Gibraltar Finance released a consultation document as part of its process towards establishing this regulatory framework.

The operative date is expected to be no later than January 1, 2018.