Tokenized.it, the startup of Ethereum veteran Christoph Jentzsch, enables companies to tokenize GmbH shares. It now has its first customers and is expanding its product.
Technically speaking, the tokenization of GmbH shares is trivial. All you have to do is put an ERC token on the Ethereum blockchain and the token is, technically, part of the Web3 ecosystem.
The legal dimension was much more difficult. With a participation certificate, Tokenized.it has found a method of displaying GmbH shares as tokens in an unbureaucratic and legally secure manner. In the interview, Christoph Jentzsch talks about this concept in more detail. Once it was found, the technical implementation was child’s play.
However, it was no child’s play to convince companies and their investors to adopt new methods of financing. However, this hurdle seems to be slowly overcoming. The first startup to sell shares of GmbH via tokenized.it was reignite, an AI-powered platform for “gaming, anime, fandom,” followed by BitWala, the Berlin Bitcoin wallet. Today there are already a few more:
- MetaBrew, a kind of society that tries to combine beer, Web3 and NFTs and has bought a brewery in Bavaria.
- Hiero.ai, a startup that wants to make Ethereum transactions more secure.
- DiBooq, a platform where holiday home owners can connect with agencies.
- RABOT CRYPTO, an algorithmic crypto trading platform.
According to the interviews on the Tokenized.it site, the tokenization of the shares went smoothly and was well received by investors.
Tokenized.it promises customers that the tokens will give customers access to Web3 and DeFi, for example to secondary markets on decentralized exchanges or platforms where the tokens can be used as collateral for loans.
But as far as we can see so far, this is not the case yet, and most decentralized exchanges will probably be wary of working with securities that could be understood as security in the USA. As desirable as it would be to activate all of the Web3 features for GmbH shares, there are still a few hurdles in the way, and trading is likely to continue to take place largely privately for the foreseeable future.
But even without this, the tokens still have some advantages. On the one hand, they significantly simplify and speed up private offerings. All you have to do is exchange a link, like with an ICO.
Tokenized.it is now building on its model with employee participation. With the help of a tailor-made contract template and smart contracts, GmbHs can allow their employees to share in company profits more easily and under more flexible conditions. Trading on secondary markets also promises more liquidity.