AnyPay Group to Launch a New Security Token Platform in 2018
Despite the plethora of ICOs we have seen in the past year, more and more issues have been recognised in ICOs, including unclarity about how investors should fairly evaluate token values when those values are not backed by specific cash flow. As a result, STOs (Security Token Offerings) have increasingly gained attention in the recent months. In STOs, companies fund-raise by issuing tokens offered as securities in accordance with applicable financial regulations, while investors are entitled to receive dividends from businesses funded by their investments.
3 Types of Security Tokens
Generally speaking, there are 3 types of security tokens; Asset Finance Token, Project Finance Token and Equity Token. They differ in the types of cash flow to which their dividends correspond.
- Asset Finance Token is backed by beneficiary rights of assets, meaning that raised funds are used to purchase assets and investors are entitled to receive returns generated as a result of operating those assets. Thus, this type of token is suitable for scaling up asset-heavy businesses such as car sharing platforms.
- On the other hand, Project Finance Tokens are linked to cash flow generated by a specific business. Raised funds are invested into not only its assets but also into other areas as required, such as R&D and human resources. In this way, companies can collect investments globally without diluting their equity.
- The third type is Equity Token. By tokenising their equities, issuer companies can greatly expand their potential investor base, while they can manage investor relations and dividend distribution on blockchain. Investors typically receive a pre-determined portion of the issuing company’s net profit.
There have already been some successful STOs, with more and more companies aiming to follow in their footsteps. tZERO, a company which aims to build an SEC-compliant security token exchange, has raised over 160M USD. Spin, an electric scooter startup, raised 125M USD to accelerate their sharing economy business, while 22X issued security tokens that provide access to equity in the 22nd batch of 500 Startups’ Accelerator Program, raising around 35M USD.
AnyPay Pte.Ltd. to Launch New Service
Clearly, STOs can empower businesses worldwide, while giving access to unique investment opportunities for investors. However, STOs are hard to launch. For instance, one has to follow various legal requirements associated with STOs and prepare a multitude of required documentation from the ground up.
AnyPay, a leading FinTech firm based in Singapore and Japan, has set out to change this.
AnyPay provides various services, one of which is ICO advisory. It has advised on multiple ICO projects such as BRD, a crypto wallet company which successfully raised 32M USD. AnyPay has also supported STOs, such as Drivezy, an Indian car and bike sharing platform. With the support from AnyPay, it has successfully raised approximately 18M USD through 3 rounds of STOs.
AnyPay will now launch a security token offering platform, which supports companies to conduct STOs in a compliant and streamlined manner. The platform will offer integrated services needed for STOs, including investor KYC/AML and accreditation and smart contract development. Additionally, it will provide functions much needed in post-STO phase, such as investor communication toolkit and dividend distribution system.
Ashwarya Singh, CEO of Drivezy Inc., said that “We have already been working with AnyPay on our security token project, RentalCoins 1.0 since December 2017. It has enabled us to accelerate our growth dramatically, allowing us to add hundreds of vehicles on our platform, and we have been distributing a healthy return to our investors since February.”
While there are other similar platforms, such as Securitize and Harbor, AnyPay aims to be different. In building the platform, AnyPay has drawn upon its experience of advising on, and helping to manage STOs. This has enabled the company to design the platform in a way that truly serves both the STO companies and investors.
With its focus on emerging markets such as Southeast Asia and India, AnyPay has already built a network of partners to realise its mission. This includes major venture capitals in Japan and Singapore, such as DasCapital, gumi ventures and B Dash Ventures, as well as two leading Japanese blockchain technology organisations, Layer X and Decentralizedtech Research Institute.
AnyPay to revolutionise traditional fund-raising
In pursuit of its goal, AnyPay will leverage its network of VCs and partners to focus on the Asian market and support tokenisation of funds and companies, helping companies to accelerate their growth while providing unique investment opportunities for investors. DasCapital, AnyPay’s group venture capital arm has a portfolio of 30 companies, including bitFlyer and Spotify.
“I am convinced that it is in Finance that blockchain will be used as a tool, and our mission is to create a mechanism where we can distribute funds to those in need by lowering the costs and providing liquidity to what has traditionally been illiquid.” said Shinji Kimura, Founder of the AnyPay group.