It will soon be possible for publicly listed companies on major capital markets, to raise funds through Initial Coin Offerings (ICO’s) using crypto-currencies based on a Blockchain platform.
Whilst the FCA deems ICO’s as high risk and subject to increasing regulatory scrutiny, Pegasus Fintech Inc has developed a process for public companies to initiate Regulatory Compliant Public Initial Blockchain Offerings (PIBCO’s), which could change this perception.
“The PIBCO model advances the ability of Blockchain and Cryptocurrency based businesses to raise funding in a global environment and meet jurisdictional regulatory compliance” says David Lucatch, Founder and Chair of Pegasus Fintech, Inc.
Listed corporates will soon be able to release Class A shares for conventional currency and Class B shares for cryptocurrency tokens. The tokens are redeemable for Class B shares, which in turn will be redeemable for Class A shares.
Tokens will provide liquidity on cryptocurrency markets and will be treated as securities, another indication that cryptocurrencies are no longer on the fringes of finance.