Smartlands Expand into the U.S. Whilst Planning For Security Token Offering
Security token platform Smartlands plans to tokenize their Holding company, Smartlands Holding Ltd., and for the first time, offer shares tokenized on the Smartlands platform to U.S investors.
Valued at about $28. 6M, Smartlands will make 3.5% of its equity stake available to investors worldwide, including accredited investors in the U.S.
This means that Smartlands can now support U.S. based investors on their popular platform.
As Smartlands looks to expand its operations into other nations, the company is looking to raise $1M and use the funds for global expansion, development of the newly released digital payment product “Smartee”, and distribution of the first Smartee Co-owner payment cards.
The security token offering in the U.S will be made in a collaborative agreement with the US-based broker/dealer, IIP Securities.
Digital securities issued on the Smartlands Platform will be available to accredited investors in multiple jurisdictions.
Smartlands CEO Ilia Obraztsov stated:
“This offering is a part of our bigger strategy of bringing in investments through the sale of a 12% equity stake. This mode of crowdfunding far exceeds other types of public offerings in speed, efficiency, and transparency at much lower costs, potentially bringing a much brighter promise of liquidity.”
Smartlands Tokenizing Investment Funds
Started in 2017, an entity for compliant security token offerings, Smartlands has been spearheading tokenized securities on the Stellar Lumens (XLM) network.
With Smartlands targeting global expansion, it should come as no surprise that they have stepped up efforts to digitize their own equity to raise funds.
The platform recently announced its plans to tokenize an investment fund with a focus on mid-stage FinTechs.
They believe that the fund referred to as the “Disruptive Technologies Fund” aims to acquire minority stakes in firms, a maximum of 20%, which indicates growth potential. The fund is looking to raise €8 million, and predictions for a return are 25%-30%.
According to their website, the Disruptive Technologies Fund will also participate in additional areas of emerging technology, to include Robotics, IoT, AI, and many more.
30% of the fund will focus on the Asia Pacific region, while 50% will target firms in the U.S. 10% will focus on Europe, with another 10% spread out in other global regions.
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Security Tokens Vs. Tokenized Securities
Tokenized securities are redefining a familiar asset, intending to expand the market, and improve liquidity.
Security tokens, in contrast, are a new product that has taken the crypto market by storm. Their simplicity means that crypto followers are likely to see many enter the market in the near future.
And while supply is likely to surpass demand at first, their trading will help investors and regulators to get familiar with blockchain-based markets.
Some crypto enthusiasts now believe there is more value in buying security tokens, as increasing shareholder value could decrease token holder value.
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