Tokenization of our Equity.

We are taking you on our journey of the tokenization of our own shares and will show you why we did it and what it can do for you.

Client
i.AM Lab
Year
2020
Services
- Education and On-boarding - Security and Safety Advising - Smart Contract Consulting and Engineering - Understanding and using existing DeFi components

The Challenge.

We are passionate about technology and business. It’s in our DNA to be a first-mover and on the cutting edge of everything we do. For quite some time, it has been our conviction that the tokenization of assets will play an important part in our society and economy. Instead of just talking about this technology, we decided to gain first-hand experience by tokenizing our own equity. But first of all, what does tokenization actually mean and how does the technology work?

The tokenization of assets is the process of creating a representation of a real-world asset on a blockchain as a digital token. Because the token can be unambiguously owned by an address, the actual asset can thus be legally owned in an increasing number of jurisdictions. Tokens then become the ownership right of the underlying asset and enjoy all legal protections of traditional assets and all the benefits of digital utility. Tokens are a securitization for the modern age. We are only just beginning to understand the value that can be unlocked through the peer-to-peer transferability, composability with permissionless infrastructure and self-sovereign custody that lie at the heart of blockchain tokens.

Thus, we did this exercise so that we could experience how the tokenization process works: from the current legal landscape, the choice of token standard, the technical implementation to the final deployment of the live token. Let us tell you more about our approach.

These Rai stones from the island of Yap have a similarity with tokens. Why? The value of this primitive money is based purely on a shared belief in its value. ©Eric Guinther, Wikimedia Commons


What we did.

The first step was to convert our equity shares into tokens. This means that each share of our company is represented by a transferable security token on the Ethereum public blockchain that can be held or transferred by the tokenholder. The Ethereum blockchain and the smart contract defining our token is fundamentally the maintainer and shareholder registry for the Lab’s shares.

Our solution complies technically with the most popular token wallets, decentralized apps and blockchain infrastructure, while also complying with legal standards set forth by the Capital Markets and Technology Association (CMTA). This is Switzerland’s leading association promoting the issuing, distributing and trading of securities in the form of tokens using distributed ledger technology.


How to become an iAM Lab Tokenholder


Individual private tokenholders have made iAM tokens available for trade on a Uniswap V2 market, created especially for the trading pair iAM/XCHF. However, iAM tokens can be acquired via any token where a Uniswap market exists. You will need a crypto wallet like Metamask or one of many available dapp-wallets that can interact with Uniswap. Become an iAM Token holder here.

How you can benefit.

As an investor

The tokenization of assets opens the doors for any type of investor. Investments that had previously been the exclusive domain of a very small group of investors, are now more democratically available and accessible to a larger group of potential investors. You can gain ownership of your preferred asset class with low cash requirements. 

Let’s say you want to invest in your favourite start up but the minimal investment requirements are too high. Companies that have tokenized their shares enable ownership for retail investors who might prefer investing small amounts for a small share of the company. Investments that had been previously reserved for an exclusive group of people are now accessible to a larger community.

As a company

Share tokenization can benefit your company in the following ways:

  • Enable easy, digital Peer-2-Peer transferability of your shares (End-2-End)
  • Empower 24/7 liquidity for your shareholders for unconstrained trading

  • Automate and secure a transparent share register

  • Develop and run a rule engine that governs corporate actions, voting, compliance

  • Enable programmability and interoperability of your securities by using existing infrastructure

  • Create a strong global community and gain access to new investors and funding

  • Make your employees and clients fans by making them shareholders. Simply.

Let's talk whether tokenizing shares make sense for your business.

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