25 Mar The first issuance of digitized securities in Spain
This post is also available in: Español
NEXT, a connected car company, is the first project in Spain to issue digitized securities to raise funds for its expansion, with the legal and tech support of Icofunding. A big milestone for asset digitization in Spain.
Next, a Spain based company that has developed a connected car platform, will be the first company to issue digitized (tokenized) securities out of Spain, falling under the required regulation of the Spanish Financial Market Authority (CNMV). The CNMV published in September 2018 the guidelines on how to issue digitized assets and securities under the current financial market regulations.
Digitized Securities: Enhanced liquidity
A Security Token Offering, or STO, is a fundraising mechanism that issues as conventional securities with a digital representation in the form of a token. Its ownership is represented through tokens which are linked to a blockchain. STOs have several benefits, among them the potential liquidity it could give investors (through its easy transmissibility and incorporation in secondary markets) and the possibility to automate tasks, such as the payment of interests / dividends.
Next: connected cars
Next is a connected car platform that detects the needs of a car and finds the most suitable companies to solve those needs, making sure drivers get the best deals while car service companies receive enriched data. The company has decided to launch a Security Token Offering to finance their expansion across Europe.