WP FINAL 221018 SPREADS F - Flipbook - Page 1
The Tokenise Solution
How It Works
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Tokenisation in itself is a significant enabler, not only for the crypto community but also to traditional
fundraising methods. It can be seen as a hybrid of traditional and new funding methods, allowing new
and existing businesses to raise capital and transfer ownership more seamlessly than ever before. Aimed
particularly at the SME sector it allows small companies to tokenise their equity, raise capital and at the
same time be in a position to exit their investment in ways that were previously only available to publicly
traded companies.
Take an example of a small company with five employees, where the employees are rewarded with equity
for their contribution. There is no possibility that they can easily transfer those shares unless the company or
a connected person of the company wishes to buy them. We believe that with tokenisation it is possible to
create liquidity where previously it did not exist. This in turn allows businesses and individuals to raise capital
more easily and for investors to exit their investment more easily, while also benefiting existing shareholders
and potentially interested parties. We expect the tokenisation of assets and securities to significantly change
the capital markets for the better and in a market that promotes entrepreneurialism, capital raising and
personal choice to better the lives of all the stakeholders. It also gives greater control and disintermediates
many of the previous obstacles.
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The features within the Tokenise platform will provide a range of benefits:
Tokenise seeks to disrupt existing methodologies in token offering, equity crowdfunding, funds,
fractionalisation and securitisation. This will lead to a new era in STOs by providing investors access to a
platform where individuals can take direct ownership in the companies seeking to raise capital. Tokenise will
ensure each offering has passed the appropriate due diligence, KYC and AML checks in order to transact in a
secure, trusted and transparent environment and it will put in place processes and procedures to ensure that
Token Offerings on the Tokenise platform are carried out in compliance with applicable law and regulation
(for example, in compliance with the EU Prospectus Regulation and any exemptions pursuant to that
regulation (Regulation (EU) 2017/1129)).
• The ability to buy/sell investments in unlisted companies has never been easy, until now.
Tokenisation enables those who buy into a project to exit their investments, which previously
only happened if the company did an Initial Public Offering (IPO) or a trade sale;
Tokenise is already in the process of building the securities platform in the UK and is talking to regulators and
governments abroad who seem very receptive to the Tokenise exchange platform. Our initial UK tier will be
a securities token crowd-sale platform, whereby individuals will be able to browse the current offerings and
if appropriate make an investment. This will help companies raise capital in a compliant manner and rewards
investors with ownership (and potentially utility) in the underlying business, asset or fund. Our platform
will enable start-ups and established projects to raise capital from investors through digital certificates of
ownership through a channel that is easier and quicker to use than current offerings.
• Those seeking to raise capital have access to a wider community of crypto and fiat investors;
The second tier will offer investors and businesses a secondary market utilising DLT and cryptocurrencies.
Our token holders will initially be able to utilise a bespoke bulletin board that enables users to view
indications of interest, bids and offers and trade bilaterally on the basis of that information. This will be
backed by a regulatory compliant entity ensuring that the Tokenise platform is reliable and secure for those
seeking to raise capital. However, the bulletin board will not constitute a multilateral trading facility (“MTF”)
or an organized trading facility (“OTF”) because it will not match buy and sell orders and those orders will
not interact with each other within our system. The Tokenise platform will not be licensed as an MTF or
OTF. In the future, the Tokenise platform may partner with, or become a member of, a licensed MTF, OTF or
regulated market to trade the tokens or it may itself become regulated to perform those activities. However,
the Tokenise platform reserves the right to amend its business plan in line with customer demand, market
fundamentals and the prevailing regulatory environment from time to time.
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• There will no longer be the need for intermediaries between investors and the start-up/existing
company;
• Tokenise puts liquidity into an otherwise illiquid market;
• Using blockchain will enable us to create a system that is efficient, auditable and scalable;
• Dual token products – offering both security and utility tokens;
• Transparency and price discovery will be enabled through a secondary (bulletin board)
marketplace. It will be possible to see the depth of the market as well as how many tokens are
being offered or sought;
• It embeds processes and procedures within the platform to ensure that users of the platform
comply with the rules and regulations around securities offerings rather than trying to
circumvent them;
• Risks are distributed as the exposure is less correlated to crypto and can be based more on
fundamentals;
• The platform will be able to accept custody of assets (through our trading partners), to ensure
that investors funds are protected.