Offerings & Issuance

How can Tokenized Security Offerings be the new fundraising method for a company?

With technological advancement gathering momentum over the past decades, advanced trading tools have fundamentally altered financial markets and changed investing in the digital era, thus becoming a topic of interest for companies looking to raise capital and making early-stage investing more accessible to a broader range of people. In the current decade, the advent of cryptocurrency and blockchain technology brought a lot of change to the world and capital formation. In recent years, tokenization has provided effective capital-raising, potentially benefiting investors and companies in unique ways. Tokenization, for the uninitiated, refers to using a "token," or a cryptographically secured unique digital record, to establish ownership and transfer ownership over another form of value.  

In terms of capital raising, tokenization is a combination of technical and legal methods to transfer ownership of an asset to the blockchain in the form of tokens. Corporate equity, debt, real estate, or a financial instrument are examples of financial assets. Tokenization makes investing in such assets far more accessible as it allows breaking large,  lavish items into smaller, cheaper fractions that may be purchased effortlessly online. Typically, companies using tokenization raise funds from a large number of individual investors.

Certainly, tokenization is fast emerging as an ideal way for your company to obtain funds and boost liquidity, thus leading to the proliferation of an array of new payment methods. Furthermore, tokenization is relatively more cost-effective, making it appealing to a wide range of businesses, especially by using a blockchain-based  smart contract, the need for middlemen and intermediaries is removed, enabling decentralized exchanges and trading.

How can a tokenized company raise funds?. What we need to know about token investing:

Tokenizer platform and onboarding

The right platform and onboarding processes are invaluable when tokenizing a company to raise funds. Obviously, the first step consists of determining what to tokenize. It would be ideal to choose an asset with a high market value since the price policy is simple to comprehend. Thus, you will be able to set the price for tokens at an acceptable rate.  

Once the assets fit for tokenization are chosen, a business model should be developed, then selecting a tokenization platform.  Typically, tokenization can be done on any platform created specifically for this purpose. A token can be created when ownership of rights is transferred. Developers and issuers have an array of online tokenization platforms to choose from to meet their demands.

Afterwards, it's critical to have a closer look at the legal guidelines. While this may seem challenging, it would be crucial to consider the regulations governing digital assets and blockchain technology more closely and to comply with them mandatorily. A perfect solution would consist of consulting a team of legal advisors who will provide you with intensive support to the regulatory requirements in various countries.


KYC and AML rules

To ensure compliance with international rules, necessary protocols such as Know Your Customer (KYC) and Anti-Money Laundering (AML) should be considered when executing tokenization. Your bank and attorneys will most likely determine the specific standards deemed crucial in proper compliance with the regulations of the locations you operate.


  • Individual investors will require KYC information such as their full name, address, and contact information, as well as documents of identification such as a government-issued ID and a proof of address.
  • Institutional investors will require KYC information such as the entity’s full legal name, the entity's registration number, primary contact information, supporting documents showing the UBOs (Ultimate Beneficial Owners), a list of the signatories and board members, in addition to a piece of evidence that the entity may agree.


Establish Tokenomics

The next step consists of determining the type of emission defined by the so-called token economy. It comprises elements such as setting a target, the minimum and maximum amount to be collected within the token issuance, selecting the currencies used by customers to make purchases of tokens, deciding which model the emitted tokens will operate in, determining the benefits of purchasing your tokens to buyers, and determining the size of tokens in circulation on the market.

Create a whitepaper

Subsequently,  pursuant to the advice of the experts' team, a fully detailed whitepaper of your project should be created. The established token economics should provide an in-depth  description in the whitepaper. Other sections that should be covered within the whitepaper include a legal disclaimer, product details, industry overview, technical architecture, business model, assets, and other types of securities associated with the token, token usage details, team members, and advisory.

Execute a marketing campaign

Once the technical aspects have been carefully considered, building a solid marketing strategy  is essential. Marketing should be approached with a sense of perspective, with special attention to the proper commission scheme developed for your consumers. A loyalty system in which users receive bonuses based on the amount paid can be created as well.

Ideally, a website could be created to offer and sell security tokens to crypto investors. The website should be safe to use and scalable to handle  multiple incoming requests at the same time. Investors should be able to register on the website to take part in the security token sale, and the KYC/AML procedures should be integrated to validate customers.

Attract investors

The types of investors who will come to the early security token market will be typically those interested in alternative investments. Early adopters may be crypto-investors, but more traditional investors become involved as the security token market matures.

Crowdsale

A crucial stage in tokenization is the crowdsale, hosted by  a company selling its tokens to the general public to raise funds. To organize the crowd sale, a button or a link enabling investors to register and pass KYC/AML checks to purchase tokens is a must-have on the website.

Further development

Monitoring by the team providing technological solutions usually ends after the issuance of your tokens is completed. In such instances, you should take control of the situation by focusing on the long-term development of your product to enhance your company’s know-how and resources further.

Focus on building a thriving support team that can deliver proactive customer service and assists customers in dealing with  various social media platforms and cryptocurrency communities. To develop long-term and strong customer relationships, respond to customer inquiries and complaints promptly, and keep your customers and target audience  updated regularly.


About Tokenizer

Tokenizer is a global end-to-end platform for digital securities on the blockchain. Tokenizer enables tokenization of assets, initial sale to accredited investors, and trading in secondary markets, all with compliance built into the smart contract code.

  • The Tokenizer platform allows users to access global markets by providing investment opportunities in global assets, thereby allowing for seamless platform onboarding.
  • It is also fully regulated and pursues SEC, FINRA, FCA & EU regulation oversight.
  • Users can start investing with a single click while the seamless user experience of the platform takes care of compliance and settlement behind the scenes.
  • Tokenizer also allows for initial sale to authorised investors as well as secondary market trading in addition to asset tokenization.

And all of these are made possible through the issuance of tokens on BlockX Network, a digital assets & CBDC settlement and payment blockchain for tokenization platforms of digital assets, settlement of payment, and cross-border transactions. BlockX is driving asset tokenization and capital markets through innovative features like low latency, multi-token, NFT, chain support, native identity and compliance, and smart contract compatibility. BlockX  has its native token as well, the $BCX token, used for Tokenizer Exchange fees and supported products.


To learn more about BlockX or how you get started as a partner, investor, validator, or operator with BlockX, visit the official website.

To participate in BlockX’s IEO on Exmarket Launchpad, click here.



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