Tokenization

What is it exactly? How is it relevant for me?

The German Federal Financial Supervisory Authority (BaFin) defines tokenization as "the digitalized representation of an asset value including the rights and obligations contained in this value, as well as its enabled transferability." We also like to define tokenization as the creation of a digital twin. A digital program, known as a smart contract, is linked to the asset and represents these rights and obligations of the legal contract.

These are represented by the tokens. The digital representation is usually implemented on the blockchain. This way, regulated financial instruments such as stocks, bonds, or funds, as well as tangible assets like real estate can be represented.

In principle, almost any asset can be tokenized.

This is where we come into play.

What kind of tokens exist?

2 Token Types Dominate the Market

Utility Tokens:

protocol tokens, access tokens, loyalty tokens, community tokens

Security tokens:

dividend tokens, asset-backed tokens, some governance tokens, some stablecoins

For us, the most relevant token structure that also fits our legal framework are Utility as well as Security Tokens.

With both types of tokens we have guided companies in raising funds.

Bottom line, with a token you can raise funds faster, more efficiently, and reduce mistakes as well as save costs during dividend payouts. All of this is possible via a well thought through token structure and smart contract applications.

We are ready to support your tokenization efforts.

Security Token

STOs (Security Token Offerings) are a type of initial coin offering that provide investors with ownership in a company and a share of profits, featuring stricter regulations and higher security compared to traditional ICOs.

Germany and Switzerland have emerged as a leading hubs for STOs, supported by a favorable regulatory environment and a robust start-up culture that fosters innovation and access to a wide talent pool.

For German and Swiss companies, STOs offer a secure, transparent, and efficient vehicle to raise capital, allowing access to a broader range of investors and potentially lowering fundraising costs for higher returns.

In short, cost savings and efficiency gains for everyone.

Utility Token

Utility tokens are digital assets designed to provide holders with access to a specific product or service offered by a blockchain-based project or product. These tokens are often issued during a Token Generation Event (TGE) as a way to raise capital and to incentivize early supporters. The value of a utility token is directly tied to the demand for the service it accesses, making its usefulness a crucial factor.

For a utility token to retain its value, the issuing company must clearly communicate its benefits and applications. Effective communication ensures that token holders understand how and where they can use their tokens, which in turn supports the token's market value. Additionally, utility tokens can help decentralize and democratize access to services by removing intermediaries and reducing transaction costs, fostering a more direct relationship between service providers and consumers.

In short, tokenize and democratize it.

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