The Zug-based Blockchain organization Token Factory has built up a safe and adaptable tokenization arrangement controlling the main real estate fund in Europe. The FMA (Financial Market Authority Liechtenstein) has as of late approved it as an Alternative Investment Fund (AIF). As an innovation accomplice, Token Factory built up the arrangement in collaboration with Bank Frick.
Blockchain is never again restricted to cryptographic forms of money like Bitcoin or Ether: Based on the Ethereum Blockchain, purported security tokens can be made to carefully connect to different resources. In March 2019, Token Factory in Zug turned into the first blockchain supplier to tokenize a property in Switzerland, utilizing its blockimmo stage. Meanwhile, the new business bolsters different organizations in tokenizing ventures that are to be reported soon. A security token is a digitalised type of a benefit.
In the Blockchain business, new tokenization ventures are arranged and declared again and again. Be that as it may, many are battling to actualize and execute them successfully. This first land finance in token structure has just been approved by the Liechtenstein Financial Market Authority (FMA). It is the principal managed tokenized AIF support in Europe.
A significant element for endorsement by the FMA was confirmation of the security of the code. This was given by an outside review firm called ChainSecurity.
“Our tokenization solution is based on standard protocols like ERC20 and an open Blockchain (Ethereum). This allows our customers to maximize the potential of Blockchain technology without having to commit to a central technology partner or proprietary (closed) solution,” says Bastiaan Don, Managing Director of Token Factory.
The Security Token is connected to an on-chain whitelist: this implies just agreeable exchanges can be prepared. Just investors who have identified themselves by means of AML/KYC will have the option to contribute, hold or exchange the relating security token. The whitelist is, right now, by Bank Frick, which manages the financial specialists through the onboarding procedure and remembers them for the whitelist if all data is finished and the wellspring of assets is adequately conceivable. The equivalent along these lines applies to the token printing process.
According to Raphael Haldner, Head Fund and Capital Markets of Bank Frick:
“As the preferred point of contact for Blockchain Banking, we were again able to demonstrate the possibilities of Blockchain technology with the tokenization of a regulated investment fund. The issuance of digital, Blockchain-based fund shares leads to greater efficiency and a higher degree of automation in the transmission process. While evaluating possible technology partners, we were impressed by Token Factory’s team, their track record and their far-sighted and understandable tokenization solution. We are pleased to take this step to further strengthen our service offering in the issuing business and are confident that we have set an important milestone for future developments.”