Security tokenization platform BlockState will raise capital via its own website, according to a note from the firm. BlockState, a Switzerland-based blockchain focused company, will commence the sale for equity tokens beginning June 18, 2019.
BlockState said its intent was to showcase the entire security tokenization and investment process from start to finish. BlockState added that it would be targeting institutional, professional, and retail investors to invest in the STO. BlockState is regulated under existing Swiss law. BlockState recently completed its participation in F10, the Swiss stock exchange group’s (SIX) incubation program.
BlockState reports that it has the support of international investors in the finance industry and advisors from companies like Airbnb, Google and investment banks including Credit Suisse and Pictet.
Patrick Storchenegger, a board member of the Ethereum Foundation, is also said to be supporting the venture.
BlockState expects to raise a fairly modest sum of €2 million.
In addition to assistance provided for a digital issuance, BlockState says it also provides access to an ecosystem of financial service providers such as private banks and secondary markets for digital assets to directly connect issuers with investors.
The BlockState operates on the Ethereum blockchain and can accommodate interoperability with R3/Corda.
Paul Claudius, co-founder and CEO of BlockState, explained their goal of proving the value of tokenization for SMEs and other “non-bankable assets.”
“The ease with which issuers and investors can be connected compared to the complex, bloated value chains of traditional capital markets is nothing short of disruptive,” said Claudius. “We are thrilled to see our own issuance become an example case for the wider market and are even more excited about the trust placed in us by the many international clients in our pipeline.”
Claudius recently posted that “tokenization is basically much more than crowdfunding. Tokenization will bring about a fundamental improvement in the capital market.”
In April, BlockState announced its first external issuer StreetLife International
BlockState was founded in 2018 in Zug, Switzerland, and has offices in Berlin, Germany. BlockState provides an end-to-end Security Tokenisation platform to digitize the ownership to privately owned assets and issue them to a global investor audience, making use of Blockchain technology for efficiency gains and financial product innovation.
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