This is how the new security token provider wants to get off to a flying start

While the crypto sector is still licking its wounds from the horror year 2022, more and more traditional investments are emerging at the same time that take advantage of blockchain-based tokenization. While this may be less spectacular and exciting than NFT and DeFi applications, digital securities offer more continuity, security and predictability.

Security Token: The Multi-Trillion Dollar Market

Not only our money is going digital, but also our securities. More and more banks and FinTechs have understood this and are setting new standards on this basis. For example, the world’s largest asset manager, Blackrock, sees tokenization as a new, inevitable trend that is sweeping the entire financial industry.

The Boston Consulting Group estimates the volume of tokenized assets at $16 trillion by 2030. Securities analysts WEPEX forecast in a scenario that in Germany as early as 2026 around a third of all new securities issues should be based on digital securities, in particular the German special form of crypto securities according to the Electronic Securities Act (eWpG). And this with a market volume of almost 1.5 trillion euros – only in Germany.

Agitarex: Financing through digital securities

This is exactly where it comes Agitarex in the game. The newly formed start-up from Cologne offers companies of all stripes a setup for issuing their own securities. Whether with the help of the securities institute Effecta as a liability umbrella, the regulated custodian Tangany from Munich or the tokenizer Cashlink from Frankfurt: Agitarex offers everything you need for a successful issue through its partner network.

The issuance of security tokens is an exciting option, especially for SMEs and start-ups that do not want to opt for a bank loan or venture capital financing. After all, the shareholders do not have to give up any shares and submit to the banks’ uneconomic lending conditions.

Instead, for example, bonds or hybrid capital constructions can be issued. It is also possible for the investors to participate in the success of the company or project. So while companies benefit from a flexible form of financing where they retain control of the company, investors can achieve above-average returns through participatory elements.

Security Token Offering

The company Gross & Co. Raumsystem is part of the start TAP Innovation Homes, which manufactures modular living systems. TAP creates affordable and comfortable living solutions. It was the first company to select the Agitarex platform for its issuance. In order to expand production, it has decided to raise capital via an STO. Small investors can invest in the company from North Rhine-Westphalia with as little as 500 euros. In the coming months, Agitarex wants more STOs on their platform listen.

Difficult environment with good future prospects

Even if the financing environment is not easy at the moment and the competition is getting bigger, Agitarex Managing Director Frank Tischler is confident:

The entire sector is still in its infancy. At this point, competition is not an issue at all, on the contrary, we are an open marketplace that is also happy to list offers from other providers. But in contrast to cryptocurrencies like Bitcoin, digital securities are wanted by politicians. Finally, it has been understood that SMEs and start-ups need flexible financing options in order to be able to grow successfully. Especially since investors are always looking for strong companies, projects and ideas. So we see our job as providing the necessary placement power by bringing both sides together.

Frank Tischler, Managing Director of Agitarex

Step by step to the new industry standard

When asked what the next steps are for him to ensure that the security token sector continues to establish itself, Tischler replies that the main thing is “to make the cost advantages noticeable for everyone involved”. “For companies and investors, the STO form of financing must offer clear advantages over traditional capital raising measures. Fewer middlemen, faster processing and digital processes are just the first step. In the future, the most important thing will be the tradability of tokenized assets, a game changer in my opinion.”

Disclaimer: Both BTC-ECHO GmbH and individual shareholders are shareholders of Agitarex GmbH.