Blockstate to Launch STO for Its Tokenization Platform
BlockState is set to issue tokenized equity through a Swiss-regulated Security Token Offering (STO). The STO will correspond with the expansion of Blockstate’s own tokenization platform.
BlockState recently made the news for conducting one of its first STOs for the music promoter Streetlife International. However, now the platform announced it will be holding its own STO under the jurisdiction of Switzerland.
The STO plans to start its public sale starting June 18 2019. Each token will represent equity in the platform.
BlockState’s platform is meant to provide end-to-end assistance for security token issuers and the investment process. This means institutional, professional, and retail investors are assisted by the platform. Board member of the Ethereum Foundation, Patrick Storchenegger, is one of the legal architects.
In total, the STO has a cap of €2 million which it plans to use to fund further technical and business development opportunities.
Paul Claudius, co-founder and CEO of BlockState, said the following about the announcement:
“Issuing our company equity on our own platform really demonstrates 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.”
BlockState hopes to tackle capital market accessibility, which is by all estimates woefully lacking. Security tokens provide investors to enter new markets and expand the reach of capital raising for businesses.
Do you believe Blockstate will become one of the leading security token platforms? Let us know your thoughts in the comments below.
Image courtesy of Token Investor Online.