The UK FCA has granted leading crowdsale as a service platform TokenMarket permission to launch its securities token offering (STO) within the regulatory sandbox. The approval indicates that STOs are poised to become a recognized and legitimate fundraising method.
London-headquartered TokenMarket was introduced in 2016 to aid blockchain startups in raising capital via token sales. The platform has already helped more than 30 startups raise over £240 million, including Storj, Crypto.com, and Civic.
“We are delighted to announce the FCA’s approval for our STO. We look forward to exiting the sandbox, completing our fundraise and tokenized equity issuance, and then cracking on with launching STOs for other ambitious businesses,” TokenMarket Managing Director Ryan Hanley remarked.
Upon completing its STO and leaving the FCA sandbox, TokenMarket can tap into its pool of more than 170,000 investors to allow SMEs and startups to raise capital through the new, regulated ICO alternative.
Per a press release, TokenMarket presently has three startups in the pipeline that wish to raise capital via STOs, including cryotherapy cabin provider Cryotech Nordic, carbon footprint reduction app Almond, and mobility rewards platform DOVU.
“Access to finance is still a big issue for SMEs. It remains difficult and expensive, and this is holding back economic growth, and job and wealth creation. We hope our own STO can demonstrate that you can use blockchain technology to transform the way capital is raised,” Hanley stated.
“We want to offer our pool of international investors the type of exciting investment opportunities that were previously closed off to them. We believe STOs promise nothing less than the transformation and democratization of capital markets,” he asserted.
The launch date for the STO is yet to be announced in the coming weeks.
Having obtained regulatory approval to conduct a token sale while benefiting from being part of 2019’s FCA regularly sandbox, TokenMarket is paving the way for STOs’ future in the UK.
The UK regulator’s approval opens the door to more SMEs and startups leveraging the new method of raising capital.