Baltasaar goes banking: we are now fully MiFID II-regulated and enable direct public placements for our security issuers
(BERLIN and MUNICH, 04/23/20)
CM-Equity, a leading financial services provider focused on placements and capital market services for institutional investors, fund managers, high net-worth individuals and family offices, and Baltasaar today announced the launch of its Digital Assets platform. CM-Equity as a financial institution is fully MiFID II regulated and acts as liability umbrella (Haftungsdach), enabling Baltasaar to publicly offer the platform to its clients.
“Baltasaar – powered by CM-Equity” now provides its clients with global corporate finance in one integrated solution. The Digital Assets platform enables one-stop digital structuring, issuance, placement and underwriting of securities with a few clicks. Traditional costs incurred by an issuing bank, a central securities depository and other intermediaries are eliminated. The customer subsequently issues a BaFin-compliant security and conducts a uniform, public placement to investors in 31 EEA countries.
Demand for the issuance of digital securities has increased rapidly over the past two years among both institutional and private investors. The Federal Financial Supervisory Authority (BaFin) in Germany opened up to digital securities early on and has taken a pioneering role within the European Union in approving blockchain-based securities. The growing use of digital securities in public securities offerings was explained in detail at BaFinTech 2019 in Bonn, among other events.
A fully digitalized issuing process eliminates many of the cost points that were previously incurred when paying the issuing banks and the law firms involved. In addition to cost savings, issuers benefit from faster processing, more efficient administration and the ability to address private and institutional investors in the shortest possible time. This is made possible by the technological mapping of the financial instrument via a token and the automated transaction processing by means of blockchain-based smart contracts.
“Baltasaar – powered by CM-Equity”
It is a merger of two companies with extensive experience in different areas of the financial world. The partnership seeks to combine strengths and create synergies.
CM-Equity as a regulated financial institution and liability umbrella enables the platform to publicly market capital market measures of companies throughout the EEA.
The technology solution allows the investor to make his investment directly online undergoing legally required procedures such as KYC and AML, provides a banking interface, the entire token management, automated repayments and a secondary market. The secondary market is accessible to customers even without a regulated financial centre, such as a stock exchange, through an OTC (over-the-counter) module. The issuer thus receives a liquid financial instrument that can be traded on the secondary market.
Customers of the platform receive a uniform structuring, technological implementation and distribution of the securities offering. “Together with CM-Equity we are leading the financial markets into the 21st century”, explains Christian Heinz, CEO of Baltasaar.
“We are pleased that we are enabling companies to take simple, legally compliant capital market measures and democratizing access to financial markets for institutional and private investors alike,” Heinz states further.
“Our Digital Assets platform provides our clients with the necessary infrastructure to raise the capital in the most efficient, transparent and direct way. Our platform functions as One-Stop-Partner for the issuers as well as its investors. Through our regulatory compliant finance solution we create new standards within Financial Markets Advisory and Corporate Finance of the future,” says Michael Kott, Managing Director of CM-Equity.
For more information about the Digital Assets Platform and “Baltasaar – powered by CM-Equity“ please visit baltasaar.com.
Baltasaar is a digital assets platform that enables companies to easily structure financial instruments, issue them in a legally compliant manner and market them publicly. With a single prospectus, companies have uniform access to 31 countries of the European Economic Area (EEA) to raise capital, attract investments and finance projects.
A large number of financial instruments can be tokenised, for example bonds, promissory notes or participation rights. Investors and issuers can issue and trade the instrument without intermediaries. No third parties are required for the safekeeping, accounting and transmission of the instrument. The issuing can be executed at a fraction of the usual cost and with just a few clicks.
CM-Equity AG is an independent and owner-managed financial services institution based in Munich. Founded in 2002, the company offers its customers tailor-made financial services in the areas of Digital Assets & Financing, Direct-Placements, Secondary Market and Alternative Investment Fonds.
The Asset Management division specialises in active portfolio management strategies as well as in providing asset management services to institutional clients and high net worth individuals with crypto-currencies. Customer proximity, transparency and sustainability are at the heart of the corporate philosophy.