25 Mar Meet Spain’s first Security Token Offering
NEXT, a STO carried out by Icofunding, has launched a Security Token Offering out of Spain to raise funds for its expansion.
Next, a connected car platform, will be the first company to launch tokenized securities out of Spain, and will fall under the required regulation of the “CNMV”, the Spanish Financial Market Authority. It’s the first time in Spain that a company raise funds through a Security Token Offering under this regulation.
The type of tokens issued by Next are being classified as securities, as described in article 35.2 of the Spanish Securities Law (Ley de Mercado de Valores “LMV”). Since these tokens are classified as securities issued through private placements, the STO doesn’t need to go through the process of getting an approval of their prospectus by the CNMV.
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 distribution of 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.