Blockchain-powered investment platform TokenMarket will officially launch its Security Token Offering (STO) on 8 July, showcasing equity tokens for £0.30 a share, according to a press statement sent to Business Malta.
When the fundraiser is complete, TokenMarket will aim to exit the United Kingdom’s Financial Conduct Authority (FCA) sandbox as a fully-regulated investment platform, and authorised to help innovative and growing businesses raise capital through STOs.
Moreover, TokenMarket says this will be one of the United Kingdom’s first sales of tokenised equity to everyday investors and “the rigorous approval process demonstrates TokenMarket’s commitment to effective regulatory oversight as well as stringent investor safeguards,” according to the press statement.
Therefore, TokenMarket is aiming to offer access to retail investors, reflecting the company’s commitment to providing global investors with the opportunity to back ambitious, early-stage startups and small and medium-sized enterprises (SMEs).
STOs allow investors to record equity on a distributed ledger technology-based (DLT) platform under existing securities regulations. As such, TokenMarket shares will be registered in the blockchain and offer the same rights and protections that investors would expect from ordinary shares, TokenMarket says.
Since its establishment in 2016, TokenMarket has helped to raise £240m for over 30 startups and has expanded across Dubai, Malta and Finland. Having secured restricted FCA permissions to carry out this equity issuance, TokenMarket looks forward to leaving the FCA sandbox as a fully-regulated investment platform, for users to research, trade and invest, as the press release says.
“I am delighted to confirm the launch date of our upcoming STO and to continue to progress in the FCA’s sandbox. At TokenMarket, we strive to democratise investment opportunities, empowering everyday investors to get involved in exciting, early-stage startups. The FCA sandbox is rigorous and world-leading; it is critical to work with financial regulation, to ensure investor protection and rights,” said Ransu Salovaara, TokenMarket CEO.
Once TokenMarket leaves the FCA, the following companies will start to issue STOs on the platform:
- Cryotech Nordic, which presents innovative cryotherapy systems and solutions away from using expensive liquid nitrogen chambers and reducing costs and opening up a once niche industry into a much larger and more accessible retail market.
- Dovu, which works with a growing number of automakers, public transport operators, and mobility startups. This company intends to create a circular economy for smart mobility, where consumers are directly rewarded for the valuable data and actions and they contribute to their mobile service providers.
“Following the completion of our STO, TokenMarket will aim to leave the FCA sandbox as a fully regulated global investment platform. It’s incredibly invigorating to see the countless businesses ripe for industry disruption and innovation; we have a strong pipeline of companies keen to launch STOs. I am proud that TokenMarket will be able to play a pivotal role in driving this business growth,” Mr Salovaara added.