TEN31 Bank achieves something historic. It is the first financial institution to upload its own stocks registry to the blockchain. The company also wants to issue more shares.
A historic event is currently taking place in Munich. TEN31 Bank is the first German financial company to take its internal stocks registry to the blockchain. This is according to a press release that BTC-ECHO has received. This means that the deeds of ownership will be registered for the first time as "Blockchain Listed Shares" (or BLS for short). Investors can directly access the shares they own and should benefit above all from greater legal protection.
In addition, TEN31 Bank has scored another success. The securities prospectus associated with the conversion has already been approved by BaFin. This allows the bank to issue more than 2.8 million new shares. The issuance is scheduled for October 2021 via its own blockchain. Among other things, the capital will be used to expand the bank's own IT infrastructure (around 25%). For example, they are currently planning to have their own banking app. In addition, a quarter of the raised capital will be used for marketing. Those who want to participate as partners of the financial institution will be able to do so via the upcoming blockchain platform. The financial company plans to announce more information in the coming weeks.
The eWpG is not yet open to digital stocks
In general, companies whose capital is based on registered stocks are required to keep a stocks registry. It provides transparency and also gives the owner proof of share ownership in the company. Until now, the way it has been done is that financial service providers store this information in a database. The federal government's approval of the eWpG in early May paved the way for the digitization of securities, but stocks were left out of the law. However, this is likely to change in the future, Matthias von Hauff told BTC-ECHO:
In the future, assets will only be issued digitally. With the approval of the eWpG this year, the German government has shown that Germany is ambitious in the adoption of blockchain technologies and has thus shown the way forward for Europe. The fact that shares are not yet included in this law is due to the fact that their classification is different. Shares do not fall within the scope of property law and are therefore still excluded from the regulation.TEN31 CEO Matthias von Hauff told BTC-ECHO
However, TEN Bank31 found a way to at least represent ownership of stocks in a decentralized registry. The Ethereum blockchain serves as the basis for this. Using a token, the various shareholder holdings can be viewed and changes can be made, for example, to the postal address. The bank sees the advantages of the technology primarily in transparency, immediacy, ease of verification, resistance to censorship and data security. CEO Matthias von Hauff highlights other advantages:
The advantage of BLS technology goes far beyond the mere storage of shareholder records: once secondary trading is possible, the technology opens up the possibility for any company to trade its shares on a cryptocurrency exchange, making investments in the company accessible to the masses.Matthias von Hauff, TEN31 CEO
Due to the availability of stocks globally, especially medium-sized companies benefit from this form of financing, says TEN31's CEO.
TEN31: The blockchain bridge builder
The bank recently demonstrated that TEN31 has already made a name for itself as a provider of innovative financial services. Together with the blockchain project Nimiq, they created an interface between traditional banking and blockchain-based payment transactions with the OASIS protocol in early June. This made various fiat currencies, such as US dollars or euros, usable on the blockchain. The protocol is expected to show its strengths especially in the decentralized financial sector. "All decentralized financial services can use the OASIS protocol to efficiently process transactions between fiat and digital currencies," the press release said at the time.