FCA-regulated STO platform Smartlands has launched its very first Security Token Offering (STO), which represents tokenized investments in a student accommodation in Nottingham. The private offering started with a minimum investment of 25,000 GBP while the public securities sale launched earlier this month with a minimum threshold of 500 GBP.
Smartlands claims its featured case provides dividend income of more than 5.5 percent expected per year, as well as capital growth.
Smartlands Platform uses Stellar blockchain technology to digitize stocks and equities for participating projects. Smartlands is also pursuing a Multilateral Trading Facility (MTF) license which allows the company and a consortium of partners to safeguard customers securities, transaction settlements, distribute dividends and interest payments, and oversee foreign exchange operations.
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ICOs have come and gone
While Smartlands is actively pursuing the coveted license, which allows the crowdfunding platform to operate a fully compliant STO exchange, they currently leverage their partnerships with other trading platforms that already hold MTF licenses. With a license issued by the UK Financial Conduct Authority (FCA), those partners have the legal ability to perform such an offering and provide a secondary market to list security tokens issued by Smartlands.
While the ICO has come and gone, security tokens have emerged to offer a compliant alternative of integrating the benefits of crypto-related technologies with mainstream finance world.
In Europe, Estonian startup DX.Exchange, which rose to fame this year after launching tokenized stocks and ETFs trading, also allows any eligible security token to submit an application to get listed on its platform. The blockchain startup, which also has offices in Israel, requires all tokenized securities to be compatible with ESMA’s latest guidelines and the MiFID II rules.
Smartlands VP of Technology Ilya Obraztsov commented: “At Smartlands we’re rethinking traditional finance models by building a global ecosystem that democratizes access to alternative investments and opens opportunities to higher-yield projects. The student complex in Nottingham is the first tokenized property in the UK, to be followed with new offerings of blockchain-based securities backed by assets in real estate and other markets.”