Tokenestate Executes First Digital Share Transaction, Successfully Brings Equity Instruments to the Blockchain
Tokenestate enables companies and real estate asset managers to offer blockchain-based digital securities by using a Swiss compliant Software-as-a-Service solution.
Today we executed the first equity transaction using blockchain-based digital assets. The sale was executed on the Tokenestate platform, a Software-as-a-Service (SaaS) enabling the compliant issuance and management of digital securities, and the Ethereum blockchain.
The transaction consisted in a movement of blockchain-based digital assets representing Tokenestate SA shares from the seller’s to the buyer’s Ethereum address, in exchange for a payment in Swiss Francs. Below is a demo video of the platform and here is the Ethereum transaction.
Tokenestate is leveraging blockchain-based digital securities to make investing cheaper, faster and simpler. It allows private companies and real estate asset managers to efficiently manage digital securities, regulatory requirements and investor relationships.
For private companies, raising funds and managing investors using traditional instruments is inefficient and time-consuming. With blockchain-based digital securities, private companies and real estate asset managers can automate the buying and selling of their financial securities. This creates liquidity at a fraction of the cost of going public.
In addition to digital security issuance services, the Tokenestate Platform provides a complete solution for managing investors. Indeed, issuing a digital security is only the start. The real value is enabling private issuers to manage large numbers of investors in a user-friendly way. We’re digitizing all key processes, for example compliance with prospectus exemptions, pre-emption rights or casting votes during general assemblies, which make it possible.
Investors owning digital shares have the same rights as other investors. As underlined by Florian Ducommun, Partner at HDC and Tokenestate legal advisor: “In Switzerland, shares in limited companies can be represented by — or encapsulated into — blockchain-based digital assets without the need to get an accreditation from FINMA. However, issuers need to comply with existing applicable securities law.”
In the coming year, Tokenestate will provide services to selected companies issuing digital securities.
We are at the beginning of a revolution in the way private companies raise financing and manage investors. Digital securities will blur the line between private or public securities and become a billion-dollar market in the next five years.
We are preparing to issue digital securities for several Swiss companies in 2019. Interested in issuing your own digital security? Get in touch with us!