As the race to take tokenized securities to retail investors continue to heat up, Neufund, a startup offering a security token offering (STO) platform announced today that it has received approval from the Financial Monetary Authority in Liechtenstein.
The regulatory approval reportedly permits Neufund to sell tokenized securities to retail investors in the innovative manner that blockchain technology has made possible.
For instance, instead of going through extensive paperwork and dealing with multiple intermediaries just to buy securities, new age STO-platforms like Neufund’s makes these securities easily accessible to anyone who has an internet connection to manage their securities in a digital way.
Also, the availability to retail investors means that these class of investors can now buy into some securities that in the past were literally available only to the accredited investors.
Meanwhile, Neufund which was formerly based in Germany reported that it formerly completed an equity token offering for their company before making the switch to serve Liechtenstein under regulatory supervision.
Following the achievement of that milestone, the startup’s CEO Zoe Adamovicz described the regulatory approval as a “big day – not just for Neufund, but business and finance communities at large.”
Liechtenstein’s Prime Minister, Adrian Hasler also commended the move, reportedly saying,
“This shows that Liechtenstein, with its open attitude towards new technologies, is perceived as an attractive location for innovative business models.”
Talking about attraction, it is noteworthy that the STO space is already home to a number of big players as it easily gains the approval of regulators unlike other blockchain-based fundraising models such as ICO and IEO. Last week, Stmarket.co reported the leading U.S crypto exchange platform, Coinbase was evaluating STOs even though it would likely launch its IEO business first within the coming months.