The new way to raise capital & manage shares.
Compliant, fast & digital.
Tokenize Your Shares
Why tokenize your shares?
Initial Coin Offerings (ICOs) have shown the potential to revolutionize traditional forms of fund raising, such as Venture Capital and Initial Public Offerings. However, ICOs have a major flaw: They do not convey any enforceable rights to tokenholders. Investor began to notice, and ICO funding dropped significantly.
Tokenized Shares combine the strengths of ICOs and traditional shares:
Quick and low-cost process
Tokenholders are shareholders with enforceable dividend and voting rights.
The entire process can be done in weeks. No FINMA no-action letter or tax ruling required.
The transfer of the token transfers the share. No burdensome digital (or even wet) signature required.
How it works
The tokenization of your shares requires three layers.
Amendment of the articles of association, board member resolution on the share token terms, investor documentation.
On-chain issuance of tokens on the Ethereum blockchain, declare loss functionality, connection with the share register.
The smart contract directly ties into a off-chain (but online) share register.
Free consultation and clarification of open questions relating to the legal & technical set-up and whether tokenizing shares make sense for your business.
Legal and technical implementation (3-6 weeks) & fundraising (optional - you can also simply tokenize your existing shares).
Distribution of your shares. Easy management of your share register & transferability of shares for your shareholders.
Create and sell new shares to a select few investors including technical and legal setup
All of the base package, plus:
Capital increase documentation (general assembly, board resolutions, filing with the commercial register)
Subscription forms for new shares and share purchase agreements
Create and sell new shares publicly
All of the non-public offering package, plus:
Providing a template for and review of the Swiss prospectus
General advice on public sale outside of Switzerland (a non-Swiss prospectus requires additional work)
Tokenize existing shares
Incl. infrastructure setup, update of smart contract, testing and test deployment, deployment to Mainnet, integration of digital share register, training & documentation
incl. Amendment of Articles of Association, board resolution on the tokenization of shares, share token term
Swiss Public Offering Package
Why choose us?
No platform dependency
Work with blockchain experts that have done it before.
No prior technical or legal know-how required.
Your shares are freely tradeable on the Ethereum-blockchain without any intermediaries.
Price certainty and low cost
Fast execution and close collaboration between tech and legal.
Flat-fee solution with highly efficient digitized legal processes.
Frequently asked questions
For whom are "Tokenized Shares" most suited?
Start-up companies and small- to medium-size enterprises, that wish to raise funds or increase their capital, enhance tradeability of their shares, simplify the management of their shareholding structure or get access to capital markets.
Is Share Tokenization only possible in Switzerland or will other countries start exploring this option, too?
The methodology and offering suggested by LEXR and Alethena is currently only employable in Switzerland, however research is being conducted on its application in other jurisdictions.
What's the legal basis for Tokenized Shares?
After thorough analysis of leading scholars and consultation with the Federal Office for the Commercial Register, we have established a secure and compliant legal solution. For the critical open question of the written form requirement for the tansfer of uncertificated securities (as which tokenized shares qualify), three levels of safety are included: First, a convincing case can be made that the transfer does not require written form if the issuer (here the company) agrees to the transfer, and such agreement is implicit if the company issues the shares as a token. Secondly, in case that would not hold, we have included a system where the company actually agrees to each individual transfer when the tokenholder requests entry in the shareholder register. As a third safeguard, the first buyers sign a written blanket assignment that the company could use to establish the tokenholders as the shareholders even in case a Swiss court would not agree with the leading scholars on the transferability of tokenized shares.
What rights does the tokenholder have?
The tokenholder is the shareholder. When enrolled in the share register, the tokenholder can enforce its voting and dividend rights and all other legal shareholder rights in the same way as traditional shareholders.