The beta version of TokenizEU will open as a platform to offer startups the chance of legally offering security tokens.
Comistar Estonia, a subsidiary of Comistar International, will offer a service for the issue and sale of security tokens. The company aims to become a Security Token Offerings leader in Europe, Comistar explained in a blog.
Security tokens are a special subset of tokens, which would require full regulation in accordance with security laws. Comistar announced it would work with companies throughout Europe, but use the jurisdictions of Estonia, Switzerland, Malta, Liechtenstein, Luxembourg, and the Netherlands to structure the offering.
Regular ICOs are waning, and projects are seeking new ways that are also legally safe. Comistar will also offer advisory and marketing services to startups aiming to launch a security token. Comistar is entering a market where competition is heating up, with the aim of building a streamlined process, in which any startup can tokenize its business model, without worrying about problems with securities laws.
“Our goal is to become the main security token issuance platform in the whole European Union,” announced Comistar.
Creating a fully compliant, curated token experience is a big step forward from the first round of unregulated ICOs, which were careful to announce their assets were not securities. The discussions and accusations that some digital networks may be selling unregistered securities have led to a loss of trust in the crypto markets. Both Ethereum and Ripple’s XRP have heard such accusations.
So far, exchanges are not ready with the ecosystem to trade security tokens, but many believe the issuance and trading of this type of digital asset is the future for the crypto space. While there are already multiple platforms for the creation of tokens, often those assets are viewed with distrust.
The idea of Comistar is to tokenize already existing company equity, but also other firm assets, including real estate or even fine art. Tokenization would once again be a form of fundraising, disrupting usual channels for financing. But in theory, a security-backed token, or a security token, would have intrinsic value, based on an existing asset. Comistar will assist businesses with the task of choosing the most suitable jurisdiction for their token offering.