The world of securities is changing…
Distributed ledger technology has the potential to transform the way stocks and other securities are offered, accounted for and how they move and settle in the global financial system.
At Watchdog Capital, our focus is on helping companies and individuals maintain registration and licenses to offer the latest investment products while complying with all relevant regulations.
We are cypherpunks. We believe that cutting edge and privacy focused businesses can thrive in a highly regulated environment. We are an institutional grade investment advisory offering highly customized boutique services with a focus on traditional assets, digital securities, and other distributed ledger technologies.
Our firm is approved for securities underwriting, investment banking and various, OTC, retail and institutional business. Watchdog’s decentralized platform allows firms and individuals who meet a strict due diligence process to affiliate with Watchdog and access its technical and operational capabilities. The firm is focused on the intersection of digital and traditional assets.
Our guidance can help you stay at the forefront of the industry – and sustain your business in today’s ever-changing environment.
Bitcoin and Digital Assets
With its creation in 2009, Bitcoin solved some key technical issues requiring the need for trusted third parties to run a ledger. A blockchain allows users to remove the need for a trusted third party for verification of what is true. Bitcoin is the first and most successful use of this technology.
We believe that the technology behind Bitcoin has the potential to change the way securities and the global economy operate. But it is still new and emerging technology and has risks and a propensity to attract low quality and fraudulent projects.
Risks of Digital Assets
Investors should use extreme caution with all digital assets. The sector is new and has many low-quality and potentially fraudulent projects. Digital securities may offer a better ledger in some cases, but a better ledger alone does not make a better investment. We anticipate that the digital securities space will include many risky and low-quality projects.
On Bitcoin, Cryptocurrencies, Digital Securities, and Distributed Ledger Technology
The world of digital assets is complex and has no shortage of opinions.
We break down our view of the industry into three main categories; Cryptocurrencies, Digital Securities, and Other Digital Assets. It is important to define these:
Cryptocurrencies are digital assets, such as Bitcoin, which are working to be money.
We Believe in Bitcoin as Money. We believe investors should be able to choose the money of their preferred choice including Bitcoin as well as the USD, EUR and other currencies.
We strive to have compliance processes and procedures which recognize and serve those investors who hold cryptocurrencies and integrate that consideration into our overall advisory services.
The goal of Bitcoin and most other true cryptocurrencies is to be a form of money. Traditional properties of money are:
Bitcoin meets all the properties to varying degrees. The volatility of Bitcoin also makes it difficult to use for fiat-based purchases.
Nevertheless, the technical innovation of Bitcoin and its staying power makes Watchdog consider Bitcoin to be superior money to fiat in many ways. It should be noted that Bitcoin, like other digital assets, remains risky. It is a speculative asset and no investor should invest more than they can afford to lose in fiat denominated equivalents.
Note: Watchdog does not currently transact in Bitcoin on behalf of clients, we educate clients and affiliates based on an understanding of Bitcoin and its potential.
Digital Securities may also be referred to as Securities tokens or tokenized securities. These are securities such as stocks, bonds or investment contracts which are represented by a digital token which uses a blockchain for the ledger proving a private key holder or other holder is the owner.
Securities are defined in the Securities Act of 1933 and through further decisions and guidance.
We believe distributed ledgers for securities to be exciting and potentially globally transformative. Securities sales is highly regulated activity requiring licensing typically including a broker-dealer license and compliance and oversight processes.
Other Digital Assets
This category includes true utility tokens and may also include other digital assets such as game tokens reward cards tokens, which may not be securities depending on their structure.
There is some overlap between these categories. A digital asset such as a tokenized in-game item or airline reward card could be used as money in that it could be used in exchange for goods and services. The base unit of account will typically be money: something like the USD, EUR or Bitcoin.
We believe in cryptography and privacy. Privacy is a human right.
We are currently registered and able to conduct business in all 50 states, Washington DC, Puerto Rico and the Virgin Islands. We are permitted to conduct business and work with clients only within the states and territories where we are registered.
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Important Disclosure: Securities and investment banking services offered through Watchdog Capital, LLC, a registered broker-dealer and FINRA/SIPC member.
Watchdog Capital, LLC
6250 Shiloh Rd., Ste 30 / Alpharetta, GA 30005