Fundwise, an Estonian equity-based crowdfunding platform, has launched of a blockchain-based secondary market, in collaboration with the security token issuance and settlement platform, Ignium.
“Through the partnership, investments in Fundwise will be tokenised through Ignium’s security token issuance and settlement platform. Investors from around the globe can then invest in Fundwise’s crowdfunding campaigns by purchasing the tokenised securities,” Fundwise said in a statement.
The partnership between the two Estonian firms follows a regulatory move by the Estonian parliament, Riigikogu, that made tokenisation of private limited companies’ shares possible.
Tackling a larger investor pool globally
“Through the partnership between Ignium and Fundwise, companies can issue digital securities and transfer those to investors across borders making it possible to tackle a larger investor pool globally,” Fundwise said. “This, in turn, improves the access to capital and reduces cost of capital. In addition, Ignium provides a secondary market for the digital securities issued through its platform. This allows investors to transact quickly and directly with one another regardless of their location, creating a more liquid borderless marketplace.”
Although securities are issued digitally through Ignium’s platform, investors keep their status as direct shareholders in the companies they have invested in. “Investors can check their ownership through the Ignium register at any time,” Fundwise said.
Fundwise, an equity crowdfunding platform that acts as a meeting place for campaigners and investors, was founded by Estonian entrepreneur Henri Laupmaa in 2015. Ignium, founded in Estonia in by Reimo Hammerberg and Kevin Murcko, enables a direct connection between companies and investors globally. The company said it “accomplishes this through its proprietary infrastructure where settlement of digital securities and money happens real-time and without intermediation”.