German-based WEG Bank AG announced on Tuesday that it had a breakthrough in equity tokenization. And with this, it has become the first company to put all of its shares on the blockchain, as per the company’s announcement. “We have been looking forward to the publication of this company news for a long time,” said Matthias von Hauff, CEO of TEN31 Bank, the fintech division of WEG Bank AG. https://twitter.com/TEN31Bank/status/1422475221559357457 BaFin, the country’s financial regulator, has also approved the bank’s related securities prospectus for public fundraising. Matthias von Hauff said,
“With the approval of the prospectus, BaFin acted and made a decision in a forward-looking manner. We followed the appeal that banks must become more innovative and wrote a piece of German financial history with our prospectus.”
Soon, private investors will be able to buy shares in the bank, which is expected to issue 2,830,000 new shares starting October. The bank will be releasing further details on the shares offering shortly. Through “Blockchain Listed Shares,” or BLS for short, the bank aims to provide the necessary transparency and evidence of ownership of the company’s shares which will also protect them from manipulation or data loss. The bank will also make secondary trading possible, opening up the possibility for any company to trade its shares on a crypto exchange. “This form of financing helps enormously, especially for medium-sized companies, as stocks could suddenly be made available worldwide,” said Matthias von Hauff. Meanwhile, recently, leading cryptocurrency exchange Binance discontinued its derivatives and futures products offerings in Germany and other regions of Europe. Amidst this, on August 2nd, the law came into effect in the country that allows certain institutional funds to invest up to 20%, billions of dollars, in crypto assets for the first time.