Our CIB division provides a variety of specialized services for corporations employing the use of distributed ledger technology, digital assets and smart contracts.
Tokenized Assets & STOs
Tokenizing assets and security token offerings (STO) are a revolutionary way for corporations to structure and sell securities with the purpose of monetizing assets or raising capital.
We are committed to understanding the objectives of our clients in order to create and launch innovative and attractive security tokens - also known as 'smart securities,' 'digital securities' and 'programmable securities' - on behalf of our clients. From asset-back security tokens to more complex security tokens that also incorporate utility benefits in addition to an underlying security, we support our clients with an end-to-end service to successfully tokenize assets and launch STOs.
This process involves 6 steps:
Step 1 Exploration
We perform initial due diligence on the prospect and explore the nature of the project to determine if there is a strong enough investment case for tokenization.
Step 2 Client Onboarding
We perform full due diligence on the prospect and request supporting documentation. Upon the approval of our compliance team, Fincross and the prospect execute a Master Service Agreement and the prospect becomes a client.
Step 3 Research
We carry out research based on the client's objectives and investor trends to determine optimal token design features. In parallel, we analyze proprietary market data and insights to make projections on token pricing for primary and secondary markets. We present this research to the client alongside legal recommendations.
Step 4 Structuring
Once the client approves the token research and recommendations of our investment and legal teams, our tech team begins the process of creating the smart contract that will run the security token. Meanwhile, our legal team prepares the necessary legal documentation.
Step 5 Book Running & Capital Raise
Once the smart contract is active and legal documentation is complete, we launch the sale of the security tokens to the primary market and take the role of lead book runner for the sale. During the sale, we perform know-your-customer - KYC - checks on all investors participating in the sale. We provide the facility for the client to accept funds in fiat and/or cryptocurrency in an escrow account until the end of the sale.
Step 6 Token Listing
Upon the close of the sale, we work with security token exchanges to list the token for secondary market trading.
Since the end of 2018, our firm has received increasing buy demand for security tokens from institutional investors, intermediaries and high-net-worth individuals. Investment mandates for security tokens vary from investor to investor, but demand we have experienced is concentrated on 5 verticals for tokenization:
- Soft assets
- Distressed assets
- Assets on reserve
- Real estate
- Investment portfolios
For more information about our security token products and services, please contact us.
For corporations dealing with digital assets, our investment team will provide tailored treasury management services in order to manage risk and hedge the exposure of our clients' digital asset and fiat reserves on a 24/7 basis. This service will be offered in conjunction with our 24/7 digital asset custody solution.
For more information regarding our treasury management services, please contact us.
For corporations that wish to deploy instant settlement applications using distributed ledger technology, our investment, legal and tech teams will join forces to develop bespoke smart contracts via our Distributed Banking Ledger - DBL - and Fincross Protocol - launching Q4 2019 - to power our clients' applications atop our DBL.
Thanks to the high scalability, interoperability, compliant and cost-effective attributes of our DBL, we will be able to power a wide range of applications and use cases, including:
- Security tokens
- Trade finance
- Supply chain
- File storage
We will also provide advisory services for corporations that wish to research and/or perform audits on existing DLT, protocols and smart contracts for enterprise applications that matter to them.
For more information regarding our smart contracts and instant settlement applications, please contact us.