Swiss asset management company launches digital EFT analogue with blockchain tokens
Swiss asset management company launched a digital EFT analogue with tokens instead of stocks
| Mar 11, 2021 | 16:49
On February 10, 2021, Swiss company UGPay Group launched sales of security tokens WCRU, which are backed by assets in real economy sectors that are under management by the financial group. Every investor that buys WCRU becomes a co-owner of the global investment portfolio that covers 20 industry sectors – gold mining, synthetic diamonds production, real estate, innovative transport, telecom, basalt fiber production, as well as cryptocurrencies and other assets. According to preliminary data, in less than three weeks, total sales of the WCRU tokens exceeded $4 million.
The WCRU tokens are issued on the CryptoUnit blockchain that was launched on the 2nd February 2021 based on the EOS programming code. The CryptoUnit blockchain works on the Delegated Proof-of-Stake (DPoS) algorithm and has three types of tokens. Apart from WCRU tokens, on the Cryptounit blockchain were issued a utility token UNTB that is used by stakers and delegates-holders of computer services and deposit-backed stablecoins USDU.
The WCRU security token offering (STO) is held under the provision of the US law on securities, Reg D, that allows certain types of companies to offer and sell securities without registration with the US Securities and Exchange Commission, SEC. This provision is used by small foreign companies with a goal to free them from a time-consuming and high-cost process of registration. For the Reg D provision to apply, the eminent must comply with the following conditions: sell securities to accredited investors only and disclose financial information.
The operating principle of the security token WCRU is in many ways similar to exchange-traded funds, ETFs, which are one of the most popular instruments among both professional and retail investors all around the world. In 2020, there were more than 7,600 ETFs on the market. Last decade, the number of offers more than tripled – 7,600 in 2020 versus 2,500 ETFs in 2010. Only in the EU, where ETFs are under the provision of the UCITS, Undertakings for Collective Investment in Transferable Securities Directive, investors bought ETFs for more than $6.8 trillion.
But unlike classic stocks of ETF-funds, the WCRU security tokens provide investors with additional benefits. WCRU tokens can be placed for staking that brings passive income in a form of utility tokens UNTB on the Cryptounit blockchain. Also, token holders get voting rights on profit distribution decisions that involve paying out dividends. From 12% tо 35% of profits from assets under management will be distributed in a form of dividends.
To eliminate the risk of WCRU token sell-off and to stabilize the flow to the secondary market, after the first sale the WCRU tokens will be frozen for 365 days. After this period, starting with 1% per month tokens will be unfrozen and freely circulating. Although the STO does not provide secondary market opportunities for the freeze period, WCRU holders will be able to sell tokens by themselves on trading platforms that work with security tokens or via P2P exchanges. The primary sales of the WCRU tokens will be done via the users’ accounts on the UGPay Group AG platform.
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