Blackmoon Crypto, a fintech blockchain-based company that raised $30 million during its ICO for its BMC token in September, has linked with global law firm Allen & Overy LLP to help establish the legal infrastructure that will serve as the backbone for Blackmoon’s crypto and traditional funds. Blackmoon’s platform represents a one-stop solution for asset managers, allowing them to create and manage investment funds legally.
“Setting up the proper investment structure is a difficult and costly endeavour. Not all tokenized funds set up a proper structure, which leads to greater regulatory risk for investors,” indicated Blackmoon Financial Group CEO Oleg Seydak. “Now is the time to introduce the industry standard for setting up tokenized investment vehicles that can attract investments from private individuals and institutional investors of any kind. That’s what the Blackmoon Crypto platform does; it pays attention to regulatory risk and bridges the gap between the fiat and crypto worlds.”
These funds reap the benefits of both crypto and fiat investments: the crypto space provides transparency and enhanced liquidity, while the fiat side offers diversification and access to the multi-trillion traditional assets market. Allen & Overy LLP law firm, reportedly ranked the ninth largest global law firm with 46 offices in 31 countries, will provide the Blackmoon team with integration of the cryptosphere and the financial world expertise. The partnership will allow Blackmoon to prepare and thwart any sort of potential scheme that could be caused.
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Blackmoon hopes to put an end to fraudulent schemes and false promises by establishing trust in the FinTech blockchain industry. It builds this trust by embracing the Ethereum blockchain, which establishes a contractual relationship between different parties, based on democratization, decentralization and trust. Transparency means that investment funds will no longer be labeled as “black boxes” for investors, with reports of intentional schemes, unknown motives, and other potential problems.
The partnership with Allen & Overy aims to allow for the time to a tokenized investment fund, to comply to an existing securities’ regulations and will help minimize counterparty risks. The law firm will work on multiple aspects such as fund incorporation and structure, will reduce the settlement times and improve the constructual term performance that the technology offers.
Blackmoon aspires to create a new and obtainable ledger for investors in order to negate the problems associated with traditional funds. In the Blackmoon economy, investment managers would be able to run a crypto fund without having to go through the hassle of creating a legal infrastructure. This effectively eliminates the barriers for a crypto fund creation, an aspect that is an important milestone in bridging the fiat and crypto economies. Crypto funds are more cost-efficient than the traditional way of investment, due to low infrastructure and setup costs.
BMC holders who enroll as continuous contributors, are expected to receive immediate revenue stream from the first fund created on the Blackmoon Crypto platform. Blackmoon will establish different funds in collaboration with external asset managers and by this, will expose investors to both the broader crypto market and traditional funding.