Consider these two conflicting statements:
- The financial system has stagnated.
- The financial system is evolving.
How can something stagnant evolve?
Current financial practices and methods of funding have existed in more or less the same form for hundreds of years: “If it ain’t broke, why fix it?”
But then it broke.
An overly self-assured industry grows complacent, opening itself up to errors of judgment. The banking crisis of 2008 is a testament to this. So naturally this precipitates a backlash. In this case, a demand for greater transparency. A call for greater democratisation of funding methods and the way finance is managed.
Historically, raising capital has always been a long and arduous task using traditional sources such as banks, angel investors and VC firms. Via this route, exposure to other types of investment is limited. In short, it’s not for everyone. And as such, it can prevent many legitimate and viable businesses from finding or receiving the capital support they require to become sustainable and grow.
That’s why alternative funding methods, such as crowdfunding, have increased in popularity exponentially, enabling people to raise capital through the collective efforts of a large pool of individuals, gaining greater reach and exposure.
We see Tokenise as the next step in this funding revolution.
A Kession Brand
Kession Capital Limited was founded in 2012 to provide regulatory hosting services to the financial services sector. Since then the Kession brand has quickly become one of the leading FCA regulatory umbrella firms, developing lasting commercial relationships with new clients while maintaining our high-level service commitment to all of our existing clients.
In 2015 we began expanding our services, looking into RegTech solutions and token advisory services, enabling us to apply our extensive experience of working in the UK regulatory space to all the services we provide.
We have worked with a long list of international clients, leading Kession to become the UK’s first listing member of the Gibraltar Stock Exchange (GSX). Here, our role has been to offer fast and cost-effective listing of debt securities, open and closed-ended funds, securitisation cell companies, specialist investment vehicles, securities tokens and other exchange-traded instruments for capital raising and investor diversification.
Following on from our relationship with the GSX, Kession went on to assist in the formation of the Gibraltar Blockchain Exchange (GBX), becoming a Sponsor Firm and helping to build a world-leading token sale platform and cryptocurrency exchange.
Tokenise was the natural next move for the Kession brand.
The token economy has seen rapid growth. In 2016, $90 million of capital was raised across the 29 Token Offerings (or ICOs) that were launched. 2017 saw the creation of nearly 900 Token Offerings and just over $6 billion in capital raised. This contrasts sharply to the circa US$155 billion raised through VCs in 2017, which shows that tokenisation is promising but still in its early stages. There is a disconnect between traditional finance and crypto, and Tokenise will help close that gap.
In 2018 — to the end of May — there were 854 Token Offerings, raising capital in the region of $5 billion. To respond to this growing market demand, Tokenise is looking to capture market share within the token space by launching a platform that is both reliable and able to bridge the gap between regulated securities and unregulated utilities. Our aim is to disrupt existing methodologies in equity, debt, tokenised assets, funds and securitisation. Tokenise will facilitate direct ownership into tokenised securities and equity.
For investors and founders, tokenisation creates liquidity, transparency, and accountability.
Backed by its Kession heritage, Tokenise’s approach will be fully compliant with the UK’s FCA regulatory framework. Using our offering, startups and established companies will be able to raise capital from investors through digital certificates that represent ownership in a safe and transparent environment.
As well as the crowdsales primary market, Tokenise will create a secondary market for curated tokens, where token holders can buy and sell security tokens directly and in compliance with the applicable laws and regulations.
A Look Ahead to the Future
Our aim is to create a platform where a hybrid of traditional and new funding methods will be made readily available to new and existing businesses, allowing them to raise capital and transfer ownership more seamlessly than ever before.
The Tokenise brand aims to become synonymous with tokenised securities across multiple jurisdictions. Our ecosystem will focus primarily on the UK, with the view to expand the platform to markets in the Caribbean, The Americas, Africa, Asia and Europe.
Tokenise has been a vision many years in the making. This marks the beginning of the next stage of our journey.
We look forward to creating a new future in tokenised securities.
(CEO and Founder)