Ashurst advised Cashlink Technologies GmbH on setting up a platform for the issuance of blockchain-based digital securities in the form of securities tokens.
The sale of digital securities is aimed exclusively at professional investors such as venture capital funds, business angels or high-net-worth individuals.
Standardized, digital fundraising has numerous advantages for start-ups and investors. The simplified shareholder structure and significantly lower transaction costs also make the investment of smaller amounts attractive for start-ups and investors, which means that more capital can be made available overall. By issuing the tokens, professional investors can also continuously invest in a company. So far, start-ups have bundled investments into financing rounds due to the high transactions costs involved. By investing via digital securities, growth companies can now raise capital exactly when they need it. This creates additional flexibility for both: startups and professional investors. The fact that the digital securities are issued on a blockchain also makes it possible to transfer them easily and inexpensively to other investors. More transparency and the traceability of transactions are another advantage of using a blockchain solution.
Cashlink is a financial technology start-up founded in 2016. The company is based at the FinTech hub of Deutsche Börse in Frankfurt am Main.
The Ashurst team was led by partner Matthias von Oppen (Picture) with support by counsel Dr Ian M Maywald and associate Joanna Wilczynska-Gluch (both Corporate Transactions). Partner Dr Detmar Loff and associate Thamar Wallus advised on regulatory aspects. Advice on tax aspects was provided by partner Dr Martin Bünning (all Frankfurt).
Law Firms: Ashurst;
Clients: Cashlink Technologies;