Fundament will Use Tezos for Security Token Issuance
The Fundament Group, a Germany-based security token platform, will now use the Tezos blockchain for security token issuance. As part of the deal, the Tezos Foundation also invested an undisclosed amount in Fundament.
Fundament’s Partnership with Tezos Explained
Earlier this month, Fundament announced a partnership with Bauwens to tokenize $7 billion worth of real estate.
Earlier this year, Fundament received regulatory approval from Germany’s securities regulator— BaFin— to tokenize Germany’s first real estate bond, with an issued volume of €250 million. Minimum investments started at a mere one Euro.
As an end-to-end platform, Fundament aims at regulatory compliance throughout the entire securities tokenization process. They also allow for the self-custody of digital wallets.
The Tezos Foundation, based in Switzerland, raised $230 million through an Initial Coin Offering (ICO) in 2017. The foundation committed $50 million of those funds to further develop its outreach.
Now, under the partnership, Fundament will issue security tokens on Tezos, and the Tezos Foundation also invested an undisclosed amount into Fundament.
According to Florian Glatz, co-founder of the Fundament Group, the integration of blockchain technology with securities will yield significant benefits:
“Right now, capital markets are segregated between professional and retail investors. Small investors, in particular, find it difficult to build sustainable wealth through attractive dividends and are largely restricted from investing in certain asset classes. It is our vision to break down these barriers and build a truly inclusive market for financial products on a global level, without compromising on investor protection.”
Tezos Foundation board member Hubertus Thonhauser says the vision of Fundament and Tezos closely align:
“We are aligned in our vision to challenge the current financial system and we very much look forward to a productive and fruitful partnership.”
So far, the nascent security token industry has raised nearly $1 billion.
Similar to the ICO, the STO is powered by blockchain technology which offers revolutionary benefits when compared to traditional fundraising methods.
What do you think about Fundament teaming up with Tezos? We want to know your thoughts in the comments section below.
Image courtesy of Fundament Group.