A new platform for Security Token Offerings (STO) will be launched in Germany before the end of the year. The technological basis for this is Ethereum and Polygon (MATIC).
German FinTech companies neoFIN, Cashlink and Tangany are planning a new platform for issuing tokenized securities (security tokens). This is according to a press release obtained by Yellow Rocket Agency. According to the release, the new STO platform will focus on “sustainable digitized tangible assets.” The launch is scheduled for Q4 2021 at the latest.
On our own STO platform, we bring together issuers, investors and distributors and create lasting win-win situations. Capital-seeking companies meet already registered investors at the beginning of their financing, who in turn have a high affinity for tokenized capital investments and can build and manage their portfolio of digital securities here. In doing so, we address private and institutional investors such as family offices equally with our sustainable tangible assets. Sales partners, on the other hand, have the opportunity to use the platform in an uncomplicated way for their customer acquisition and maintenance and for the onboarding of new partners in an automated, digital process.
explains neoFIN sales expert Patrick Schütze. The tokenization company Cashlink is responsible for the technical implementation of the security token platform. According to the press release, the company relies primarily on Ethereum and Polygon (MATIC). The security tokens are held in custody by the custodian Tangany, which already gained experience in the field of “green” STOs last year with the Green Ship Token.
Advantages of STOs over traditional securities issues
Although security tokens represent a promising use case for blockchain technology, the novel investment vehicle has had a tough go of it so far. Regulatory ambiguities, in particular, made many STO-curious companies shy away from tokenization, such as debt securities or company shares. With the Electronic Securities Issuance Act coming into force in 2021, the fog has lifted, at least in this country. For companies, tokenization offers several enticing advantages. For example, security tokens can be used to generate liquidity for traditionally illiquid assets such as real estate. Furthermore, unlike traditional securities transfers, security token transfers not only have lower transaction fees, but can also be made outside of stock exchange opening hours.
Blockchain technology will permanently change and digitize the capital market. A perfect use case is offered by traditional capital investments, specifically to digitize access to traditional tangible assets and offer investors more liquid assets. We are pleased to offer our technology with the long-standing market expertise of neoFIN,
Michael Duttlinger, Managing Director of Cashlink, is looking forward to the new STO platform.