How much do you know about blockchain? We can barely go a day without hearing about fluctuations in Bitcoin’s price so if you know a bit about that, you get the idea that digital assets are out there in various forms. What’s evolved is that there is more acceptance of blockchain as an efficient & reliable way to keep tabs on ownership, transfers and more.

Security Token Offering

These days, in the EU you can choose to do a Security Token Offering (STO) instead of a traditional share offering. This journey has been largely led by the German regulator BaFin, who back in 2011 classified crypto assets as units of account & financial instruments. Then more recently additional regulatory work was done to define tokens. They must be transferable, have rights like a security & have the ability to be traded on the market.

Can Irish Businesses Benefit?

Irish businesses can use the passportable EU rules to access STOs until the Central Bank regulates them in Ireland. STOs can be used by startups & SMEs to raise capital, as well as for commodities, funds & real estate to have fractional, easily transferable ownership. If this still sounds like gobbledygook; to make it real & get a glimpse of the future, see this article about how $12 million of German real estate was tokenized.

If you are interested in an STO we have partners who can assist. Talk to us on 01 55 636 55 or email hello@businessloans.ie