The principality of Monaco has just announced that it is going to allow up to 15 government- approved Security Token Offerings (STOs) p.a., raising $15 to $200million each.
The first STO is to raise $50m for a film production company called Icebreaker (which made the TV documentary ‘March of the Penguins’). Investors in the STO will receive a share in the income from Icebreaker’s future productions, which will include new films. Daniel Coheur, Chief Commercial Officer at Tokeny, said, “The IceBreaker project is to allow the production company to retain all the content rights. Antartica, the exhibition that was organised to support the movie, made much more money that the movie itself. IceBreaker has signed agreements with museums to organise these exhibitions around the globe. It is just one way how IceBreaker intends to monetise its content to create more value for investors”.
Monaco has teamed up Tokeny to issue the STOs, with Tokeny, itself, being 24% owned by Euronext (Europe’s biggest stock exchange). Therefore, one wonders how long will it be before we start to see Euronext converting itself to enable the trading of digital assets that a STO creates so they can be bought and sold 24/7. The digital assets sector was given a further boost last month when Monaco’s neighbour France announced the second Initial Coin Offering (ICO) approved by the French financial services regulator under its new ICO Visa scheme. Given that, back in April, the SEC approved a Blockchain-based Security Token trading platform, no doubt the powers that be in Hollywood will study Icebreaker. Should Icebreaker be successful in raising film finance, no doubt Hollywood film executives will want to follow Monaco’s lead. STOs and properly regulated ICOs not only offer companies an alternative way to raise capital, but also the promise of jobs and additional tax revenue for governments, both of which will be sorely needed over the coming months.