Digital securities


A SHORT INTRODUCTION

DIGITAL SECURITIES

What are digital securities?

Digital securities are the contemporary development of old familiar and regulated financial products. Already in 1784 Johann Wolfgang von Goethe invested in the commodity market with participations. At that time the securities were decorated with coats of arms and seals and were often printed on handmade paper or animal skin. 1998 - a few hundred years later, the first online broker in Germany was available where you could buy securities without having to go to your bank in person. Now it is finally possible to display the entire life cycle of a security digitally, which has various advantages. Digital securities are therefore the state-of-the-art successors to traditional securities and represent a regulated financial product in a new guise.

Digital securities - the (r)evolution of the financial market

Until now, the issue of securities has been reserved for only a few. Complex processes and high costs simply made them uninteresting for start-ups, medium-sized companies and project developers.

Through the use of DLT technology (blockchain technology) it is now possible to digitize securities cost-efficiently, easily and securely. This process of digitizing securities is called tokenization.

What does tokenization mean?

The asset, the value behind the security - for example a property - is divided into many tokens (shares) during the tokenization process.

These tokens represent a partial value (in our example of the property) and can be purchased and traded by investors. The tokenization thus corresponds in the theoretical process to a classic securities issuance:

  • A company issues many small shares, investors can acquire these and consequently own securities of the company.
  • This securities issue is strictly regulated and controlled by the supervisory authorities in Germany.
  • Since tokenisation is equivalent to this process, it is also subject to the same regulations and supervisory obligations.
  • To put it simply, tokenisation is a synonym for a digital securities issue.

Digital securities offer many possible applications

  • EQUITY

    Participation rights

    Company shares*

  • DERIVATIVES & FUTURES CONTRACTS

    Certificates

    swaps

    Futures/Forwards

  • FUNDS

    Investment unit / fund share certificate*

  • VALUES

    Art

    Real Estate

  • FIXED-INTEREST SECURITIES

    Bonds

* Depending on jurisdiction

Would you like to use a digital security to realize your project? Then you will find here further application possibilities and inspirations of what is possible with digital securities.

Why digital securities?

  • Digital securities are the future of the capital market!

    As in many other business areas, new technologies make it possible to make the existing ones more user-friendly, efficient and sustainable.

  • Digital securities are a source of opportunities!

    Until now, securities issues have always been associated with enormous costs and even more complex processes, which has made securities unsuitable for most projects.

  • Digital securities are there for everyone!

    Regardless of the size of your investment, you can invest directly in digital securities without any additional costs.

What are the advantages of digital securities?

  • COST-EFFICIENT

    By mapping securities on the blockchain, many expensive intermediate parties become superfluous. Thus, the costs in each step are much lower than with their predecessors. This enables many new market participants to use securities for their projects.

  • UNDERSTANDING

    By digitizing and simplifying all processes, the purchase or issuance of a security becomes as simple, transparent and understandable as it should be for a modern solution.

  • REGULATED

    Like traditional securities, digital securities are subject to regulatory requirements and strict controls by the supervisory authorities. They are therefore not unregulated crypto-currencies, but rather serious financial instruments.

  • HIGH TRANSPARENCY

    Transactions are stored unchangeably and transparently on a regulated blockchain using DLT technology. They are thus securely traceable at all times, which strengthens the trust between market participants.

  • GLOBAL TRANSFERABILITY

    The digitisation of securities drastically simplifies the transfer of assets. Assets that were previously illiquid can now be easily transferred worldwide 24/7 in seconds.

  • SUSTAINABILITY

    Paper-based processes are digitised through our platform and the use of blockchain technology.

Digital securities

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