Mt Pelerin, the Swiss fintech company specialized in blockchain banking and finance, has announced the launch of a one-stop shop service to help startups and businesses raise funds with the help of security tokens.
This new tool gives companies of any size the possibility to access fund raising methods like IPOs more easily and without significant entry barriers. This facilitated access should soon democratize and boost the liquidity of such investments.
More specifically, security tokens allow to raise funds by offering equity or bonds incorporated into a security token directly to the public, while remaining attractive for traditional investors. Mt Pelerin provides for such a sale a comprehensive support for the technical, financial and compliance aspects.
This game-changing possibility was first used by Mt Pelerin itself when the company created and sold the first tokenized share in October 2018. With its token providing direct ownership of the Mt Pelerin Group SA entity (and therefore protection by Swiss law for its holder), the company sold 5% of its equity without intermediaries to hundreds of investors around the world, raising $2.15 million in the process.
While Mt Pelerin works on obtaining a banking license in Switzerland, the company leverages today its technology and financial intermediary status to assist other companies achieve the same feat. It wants to provide a future-oriented fund-raising tool that will enable the public to participate in the funding of companies directly. Beyond fund raising, companies will also find among the public their first ambassadors and potential customers.
“In addition to the technical aspects of security tokenization, we are able to conduct KYC/AML on behalf of our clients and offer fiat escrow accounts,” explains Arnaud Salomon, the founder and CEO of Mt Pelerin. “A unique level of service in the blockchain space that companies would normally need to get from several expensive specialists, while we provide first-class expertise and due diligence in a single place.”
The goal of this service is to help companies focus on their fund raising and relieve them from all the other tasks for which they don’t have the necessary time or technical capabilities. Here are the main services that Mt Pelerin proposes:
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- KYC/AML processing of investors
- Fiat funds collection through escrow accounts
- Competitive currency exchange
- Legal document templates and support on the offering
- Security token setup
- Token sale smart contracts
- Configuration of compliance rules
- Issuer and contributor interface
“Our purpose is to serve startups and SMEs with a comprehensive and professional tokenization technology easily and at a low cost.” Arnaud continues.
Mt Pelerin’s technology differentiates itself by an approach based on the respect of compliance aspects (account opening, MiFID II, etc.) as well as anti-money laundering regulations. It is indeed capable to dynamically enforce transferability restriction rules triggered by a rule engine, over multiple possessions, allowing in this way the application of relevant regulations.
Mt Pelerin addresses this problematic through an open-source compliant tokenization framework designed to adapt to constantly evolving laws, as well as multiple jurisdictions.
“Our framework allows for the flexibility and scalability required to provide total compliance for multiple jurisdictions and maintain it over the entire lifetime of a token as laws evolve,” details Arnaud Salomon. He also believes that the scale and scope of his open-source technology makes it a good candidate for a standardized solution, an unavoidable step for the widespread adoption of security tokenization in the financial industry.
Moreover, the company is a member of the Capital Markets and Technology Association (CMTA) alongside industry heavy weights such as Pictet, Swissquote, Temenos, UBP and the law firm Lenz & Staehelin. Mt Pelerin contributes to the association on technical tokenization aspects, as well as on work related to democratize financial tokenization.
About Mt Pelerin
Mt Pelerin is a Swiss company based in Geneva building the first blockchain bank. It uses the technology to create a compliant and open ecosystem where individuals and businesses will be able to issue, deposit and trade tokenized securities straight from their bank account. With this new institution, Mt Pelerin envisions a new era of financial freedom through a facilitated and disintermediated access to financing and investment for all. Mt Pelerin has the ambition to become a fully authorized Swiss bank by 2020. For more information, a press kit is available on https://www.mtpelerin.com/press.