block state offers companies the opportunity, through their platform, a Security Token Offering (STO) to perform. In Switzerland (train) – based company has recently given his first STO-customers, a European music – and event promoter known. Why Switzerland is the best place for STOs, the STO volume in 2019 will develop and which block state is different from its competition, has betrayed us block state CEO, Paul Claudius, in an Interview.
By Sven Wagenknecht
9. June 2019 BTC$7.763,00 -2.45% part Facebook Twitter LinkedIn xing mail
BTC-ECHO: The company Streetlife International will be the first STO on your platform, and should take place in Q3 of this year. What are the challenges you have to fight: the technical set up or Meet the regulatory requirements?
Paul Claudius: I think STOs are always a combination of proper regulation and functioning of the technology. In this respect, it is necessary to have the two areas done his homework. What is defined in the securities prospectus, must be in the Smart Contract is also implemented. Since the market is still relatively young, we have to build the entire technical infrastructure and regulatory requirements such as KYC vote.
BTC-ECHO: With a view to the already ongoing or completed STOs can get the impression, with a few exceptions, that it is rather weak, projects have changed from the marketing aspects of ICO to STO. You share this critical Position?
Paul Claudius: I see similar. There are maybe a handful of interesting international projects that have successfully carried out a Public STO. We are currently working on capital market issues, in part, also larger volumes have to be placed. I assume that we will have in 2019, more emissions, than there was previously a total.
BTC-ECHO: Some of the STOs choose your Token only to institutional investors to make, ergo no Public Sale. The expensive securities prospectus, which is a prerequisite for a public STO is to blame?
Paul Claudius: For many platforms, is a STO is primarily a marketing tool. It is a bit pointless, Token only to institutional investors. Clearly, this can mean a more efficient Shareholder Management. But it is, in principle, the idea of why you’re doing STOs at all. The idea is that you have a wider group of investors opportunities to invest in Assets. Also, the different regulatory treatment in the various jurisdictions is a Problem.
In Switzerland, it is much easier to STO than in Germany. Finally, it is only possible in Switzerland to give investors access to a token, isolated capital in the context of STOs. In Germany, by contrast, can currently be issued no Security Token as a full-fledged shares. This would require a change in the law. Instead, we are in Germany with the enjoyment of the right to work, the do not offer the same possibilities, and for less investment.
Switzerland is so very much more. I’m going to assume that we are in two years in Germany on a similar Level.
BTC-ECHO: See Initial Exchange Offerings of crypto-exchanges as a potential competitor for STO platforms such as you?
Paul Claudius: We focus strongly on the Emission and the Life Cycle Management. That is, we work with partners both in the Primary and in the secondary market. We stand with the regulated European stock exchanges, in close contact and see this as a Partner. Because a secondary market only works when there is enough liquidity is available. Today, you will see: There is no single trading venue for a Security Token that has sufficient liquidity. In this respect, I don’t see Exchanges as competitors. In terms of inner-earth objects: Many of the stock exchanges, which offer inner-earth objects, find STOs, although potentially interesting. But they are not regulated enough to be able to STOs actually emit.
BTC-ECHO: What time do you think Security the documentary evidence of securitisation Token to replace, ergo each paper is to be tokenized?
Paul Claudius: this, Too, is very jurisdiction-dependent. In Switzerland today, because there are so-called stock rights. A Corporation can lead to its share register autonomously on a Blockchain. The Transmission of the respective value of the rights is already possible today.
In Germany, there is a need, however, once a change in the law, which is introduced under circumstances this summer. Finally, there is a need for a global certificate, which must first be dematerialized. The adoption process will take twelve to 24 months. But even then, it is not yet clear whether the necessary regulatory are pre-conditions for the token that is interested in equity created.
by the Way: The Blockchain-use is not the same everywhere useful. The big stock companies like Apple or Amazon, we can trade very efficiently and easily. The benefits of a tokenization of a share of Apple, for example, are more likely to be low.
Different in small to medium-sized enterprises (SMEs), such as, for example, limited liability Companies or Swiss Companies, where we see a huge Potential. Here a market can be developed offering new access to capital and investment opportunities. Finally, about 54 percent of the GDP is created by SMEs.
BTC-ECHO: Finally, again to you. How can you enforce you as a STO platform?
Paul Claudius: We are well aware of where our value added is. We also have a very modular infrastructure: We work together on both the Deal-Flow side with the banks as well as with the evolving secondary markets. So we can cover the entire value added chain. In addition to the support of capital market issues of our customers, we currently also have our own Public STO in Switzerland, we will implement in June.
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