Rise Wealth Technologies, a German company that develops AI-based trading algorithms recently announced the commencement of its security token offering (STO).
The firm hopes to raise at least $120 million from the issuance of their security tokens (RSE), with the offering only currently available to accredited investors.
While the company would use any raised funds to expand its operations globally, investors into the revenue-sharing tokens can expect to receive quarterly profits payout.
Other notable benefits for investors include a 4% per annum yields, an extra payback in addition to profit payouts, as well as an entitlement to proceeds should RISE undergo an IPO in the future.
The company also hinted the possibility of making the security token offering available to retail investors, although, at the moment, that move is still pending regulatory approval.
Sharing his thoughts in a press release following the unveiling of the RISE STO, Stefan Tittel, the company's CEO hailed the move "as a one-time opportunity for investors to benefit from the fundamental shifts in a trillion-dollar market."
He also highlighted RISE's commitment to providing professional-style investing tactics to the everyday trader, and predicted that "within the next five years up to $12 billion in institutional capital will be able to flow into trading strategies using RISE technology."
Interestingly, RISE's STO is being powered by leading blockchain tokenization startup, Securitize.
Stmarket.co reported earlier this week that Securitize also worked on the release of tokens representing equity ownership in the popular newsletter business, Curzio Research.
That offering, although targeting a lower raise of $3 million-$12 million is also restricted to accredited investors.
Meanwhile, in another development regarding token offerings in Germany, the country's primary financial markets regulator, BaFin recently authorized Fundament Group to issue a tokenized real-estate backed bond worth 250 million euros ($280 million).