Blockchain and crypto-assets have the potential to disrupt both how value is transferred and the capital markets as a whole.
Streamlined issuance and assets lifecycle processes, increased transferability, reinforced risk management and compliance, along with eased access to capital raising and increased assets investability, here are some of the benefits provided to assets by blockchain and crypto-assets.
Access new forms of financing
Security Tokens Offerings (STO) bring tangible benefits to both issuers and investors and allow for an alternative funding mechanism that leverages the features of the blockchain technology.
- Eased access to external funding
- Faster time to market
- Cost efficiency
- Programmability of investors eligibility criteria & automation of security lifecycle
- Global reach and closer relationship with investors
- Increased transferability and potential liquidity enhancement
Security token offerings also enable a direct access to the digital native generation and stand at the cutting-edge of innovation while benefiting from a clear regulatory framework since investing in crypto-assets qualifying as financial instruments provides the same level of protection as traditional assets.
Examples of use cases:
- Disintermediated financing of small and medium sized enterprises: the direct borrower/investor relationship and the emergence of peer-to-peer (P2P) secondary markets that can offer liquidity is leading to a disruption of traditional financing methods and an increase in P2P financing.
- Green, Social and Sustainable bonds: the transparency and the traceability capacity of blockchain allows for the creation of native audit paths. This functionality allows the monitoring and verification of the use of funds, a particularly important issue in the field of green, social and sustainable financing.
Bring liquidity to notoriously illiquid assets
Tokenisation offers great opportunities to enhance the investability of illiquid assets or to decapitalise balance sheet. While alternative assets such as real estate or private equity are obvious candidates to tokenisation, the possibilities are endless and are opening up a world of new investment opportunities.
- Near instant settlement
- Broaden investors reach
- Automation & programmability
- Fractional ownership
- 24/7 trading
- Enhanced transferability and liquidity
How PwC can help you
- Feasibility & readiness assessment for security token issuance or assets tokenisation project;
- Assistance with identification, due diligence, and introduction to relevant stakeholders (tokenisation platforms, crypto-assets exchanges, market places,…);
- Support in drafting your offering documents, in compliance with applicable regulations when applicable;
- Hands-on support and project coordination;
- Ongoing support to meet your investors’ and regulatory reporting obligations.
Our Joint Business Relationship
PwC and Tokeny have joined forces in a Joint Business Relationship (JBR) since January 2020, to bring new and innovative services linked with tokenisation in the fields of capital markets and asset servicing.
Contact us
Thomas Campione, CFA
Advisory Director, Blockchain & crypto-assets Leader, PwC Luxembourg
Tel: +352 62133 50 93
