The company’s brick block is one of the first companies in the crypto-field that has successfully issued a securities information sheet. Small investors can now participate in a Security Token Offering (STO) of the company for real estate.
Moritz wire
30. October 2019BTC$9.146,73 -0.51%part Facebook Twitter LinkedIn xing mail
The German Federal financial Supervisory authority (BaFin) approved the securities information sheet (WIB) of the company’s brick block for a public STO. Brick block operates the platform scaling funds, the Fund managers provides digital Tools for the procurement and management of investments. According to a press release, the company focused on the care of institutional clients and accredited investors. Brick block has to be a white label product available for this project, „to demonstrate the potential of the Blockchain technology in retail“.
brick block Digital Services is part of the brick block Group and operates out of several products for real estate and alternative investment funds. The core product of the company scaling funds, a Business-to-Business Software-as-a-Service platform.
a Chance for small businesses: The paper-information sheet
In the case of public Offers of securities whose Total consideration in the European economic area (EEA), less than eight million euros, under certain conditions, to have an expensive prospectus may be waived. Instead, it may be sufficient to create a securities information sheet (WIB) and of the BaFin to approve. This can reduce the bureaucratic hurdles, in order to generate capital for small businesses.
According to the BaFin, the WIB is allowed to include a maximum of three pages and must contain the essential information on the securities, the provider, the Issuer and any guarantor. The WIB must also contain a „warning, according to which the acquisition of securities with significant risks and to the full loss of the invested capital can lead to“. The WIB can thus serve as a viable „Light version“ of the classic securities prospectus, and, therefore, especially for small STOs will be interesting.
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Security Token Offerings to investors to secure the same rights as traditional financial market issues. Therefore, the securities must allow supervisors such as BaFin, public STOs, as well as capital market products from the traditional financial sector.
Fundamentally a Security Token to serve as a Funding method. In contrast to Utility Token Security tokens are officially approved securities in token form. The Security Token can be registered in the tokenization process in the Blockchain. By the Tokenization of small and medium-sized enterprises, will be ensured access to the capital market with less financial and bureaucratic effort.
Axel von Goldbeck, a Partner at the law firm DWF, believes that STOs have a Chance of financing option for small businesses:
STOs offer a financing option in which no Bank loans are available. This is a great advantage for small and medium-sized enterprises (SMEs), which have problems to obtain Bank loan for the access to the capital market, and in particular for real estate owners.
In the official Blockchain-strategy of the Federal government, it means that the Token Economy is a „dynamic Ecosystem of developers and service providers.“ By token of symbolization, a new sector block chain-based services had emerged. A Token can represent all kinds of values, rights and obligations to tangible and intangible goods.
Jakob Drzazga, the CEO and managing Director of brick block, welcomes the new regulations of the Federal government:
I am very pleased that the Federal government has decided to Blockchain rules to implement the intangible assets allow. It is time that the industry benefits from a more efficient and transparent type of securities investment.
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