Will Monaco, accompanied by blockchain startup Tokeny, be the future “funding nation”? The process of Fundraising through tokenisation of assets in Monaco is being prepared. Indeed, Monaco’s ambitions for the Blockchain are making two great strides:

  1. Preparing the legislative system to welcome decentralised finance with Law 1491 of June 2020.
  2. Recruiting the technology startup specialising in the creation of blockchains: Tokeny

Frédéric Genta, who worked for Google and is interministerial delegate in charge of the digital transition, has the ambition to host regulated Security Tokens Offerings (STOs).

STOs are an alternative to fundraising, which allows funds to be raised directly through the sale of tokens. Each token represents a share of the company. And any asset (company, work of art, film project etc…) can be tokenised.

Sometimes called “securitisation 2.0”, the tokenisation of assets has many advantages:

  • Improving liquidity
  • Enabling faster settlement
  • Reducing costs
  • and strengthen risk management and compliance.

 

Tokeny, fintech startup, Blockchain partner in Monaco for the DeFi

Tokeny, a Luxembourg-based fintech company, will manage the operational part of Monaco’s decentralised finance. On the administrative aspect, the Principality will label the projects to reassure investors.

“The lack of high quality tokenised assets has been a stumbling block in the tokenisation industry. With the mandatory label, the projects selected by the Principality of Monaco will be easily recognised by investors as serious and high quality investment opportunities”, explains Luc Falempin, CEO of Tokeny Solutions.

Tokeny’s solution for Monaco’s STOs

Tokeny’s solution consists of a technology platform sold as a service and supported by a robust blockchain. The blockchain startup Tokeny offers three products:

  1. Issuance and allocation of tokens and onboarding investors;
  2. Transfer and control of these tokens by the blockchain;
  3. and after-issuance service and a white-label investor portal.

High security measures for the Monaco Blockchain

For the issuer of the tokens, the rules related to AML and KYC checks will be automatically applied. Companies raising funds will have to be registered in Monaco. Also, the fund raising project will have to be approved by the Monegasque authorities. And finally, article 4 of Law 1491 requires that the funds be sequestered until they are invested.

“Finally, the rights of investors will be guaranteed by their blockchain identity.” reassures Luc Falempin.

 

Euronext, Tokeny’s new shareholder to gain credibility

In July 2019, Tokeny announced that Euronext had subscribed to its entire €5 million capital increase. The Luxembourg start-up had already won the Fintech prize at the 4th edition of the Fintech Awards Luxembourg.

This entry in Euronext’s capital is a clear sign of the market’s confidence in Tokeny. Indeed, the young startup fintech was only born in September 2017 and has quickly established itself as a serious player in the field. Thus, Euronext subscribes to the €5M and takes control of 23.5% of the shares. Finally, the manager of the European stock exchanges benefits from a position on the board of directors.

 

5M raised for Tokeny and a good dose of credibility alongside Euronext

“This is doubly important,” notes Tokeny’s CEO, “On the one hand, we will be able to recruit the best people to continue our development. Of course, developers but also support functions. People who will be able to accompany us in the deployment with our new customers, and in communication as well.”

“And on the other hand, Euronext, with whom contacts began in February-March, is the perfect partner for its European dimension, but also central to the organisation of the markets. This can be reassuring for our prospects and future clients”. In short, great prospects for the fintech hosted at the Lhoft!

It’s also the right time because regulations are opening up, particularly in France and Luxembourg“, says Luc Falempin.

 

Tokeny, supported by PWC for turnkey tokenisation solutions

Tokeny and PwC Luxembourg have founded a joint business relationship. This enables them to provide turnkey solutions for asset tokenisation. This solution can be applied to both capital markets and asset management.

This partnership will be a complete offer on the tokenisation of existing and new assets:

  • Legal and legal aspects to be managed by PWC (from accounting to law, regulation, taxation, risk insurance
  • Technical aspect to be managed by Tokeny (technical solution, cybersecurity or conservation)

Tokeny is gearing up to become the partner of the Principality of Monaco in its Blockchain and STO projects!

“Thanks to tokenisation, institutions can digitise financial assets such as shares, loans, bonds, funds and other securities. They can thus streamline their administration to provide customers with a digital service first”, according to Luc Falempin. “In addition to reducing costs for companies, this new technology can open up new revenue models and new markets for industry players”.