Security Token Offering

  • Tokenized Debenture Bonds and Deposit Business – What must STO Issuers Observe during the Planning Process?
    Next to the credit business, the deposit business is probably the most prominent banking business. According to the legal definition, deposit business is conducted, if unconditionally repayable funds are accepted by a third-party. However, the definition of deposit business intends for an important exemption for cases in which the repayment claim is securitized in bearer […]
  • Promoting the Token Sale – When Can Marketing Activities Begin?
    Security token offerings are more and more regarded as an interesting alternative to traditional issuances of securities by companies. But the success at the digital capital markets is follows the same rules as their traditional counterparts and will be rated by the placement success of the security tokens. This means that a company seeking fresh […]
  • STO with a Security Information Sheet – A Chance for SMEs?
    According to the requirements of the EU-prospectus directive, companies intending to procure funds from the European capital markets by offering securities to investors need to compile and publish a comprehensive security prospectus that must be approved by the competent capital markets supervisory authority. The same rules apply to the public offering of security tokens, that […]
  • European Market Abuse Regulation – What do STO Issuers Have to Consider?
    With the introduction of the European Market Abuse Regulation (MAR), which is directly applicable in the member states without transposition, in July of 2016 the regulations for securities trading with regards to insider trading, market manipulation and the publication of insider information are harmonized within the EU. The national capital markets regulations of the member […]
  • Security Token and The German Debenture Bond Act – Are They Mutually Exclusive?
    The approval of the first security prospectus for a security token offering by BaFin at the beginning of this year came like a thunderbolt to German capital markets regulation. The Authority proved itself open for innovations. At the same time, the German legislator is laying the groundwork for facilitating the emission of security tokens in […]
  • Initial Exchange Offerings – What is that and Can They Be an Alternative to STOs?
    Some of the biggest internationally operating crypto exchanges started recently to offer so called initial exchange offerings (IEO). For a couple of months now, interested companies can procure funds through this new blockchain funding method by publicly offering their blockchain tokens on platforms like Binance Launchpad, KuCoin, Bittrex IEO, Huobi Prime and OK Jumpstarter. By […]
  • Security Tokens Always Securities – What are the Implications of the New Administrative Practice of BaFin for STO Emitters?
    BaFin expressed its new, general administrative practice concerning the qualification of security tokens in an article in the BaFin journal of April 2019. Under this new administrative practice security tokens, meaning all tokens granting its owner membership or equity-like rights and that are freely tradable and transferable will be qualified as securities sui generis. This qualification by […]
  • STO Without Prospectus – What Are the Possibilities?
    Security tokens are blockchain tokens that are issued via smart contracts and that grant to their owner certain monetary rights like e.g. an interest rate or a participation right on the issuing companies’ profit. In this respect the security token differs from the utility token which grants its holder access to or benefits within the […]
  • Valid Transfer Mechanism for Security Tokens
    Besides of the regulatory qualification of security tokens as security, shares in investment funds or alternative investment assets quite a number of private law issues are raised when conducting securities token offerings. The most prominent pitfall when it comes to private law and security tokens is the fact that the German Civil Code BGB in […]
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