First equity tokens generated according to the Liechtenstein Token Act by Amazing Blocks

Amazing Blocks is the first company to tokenize equity according to the Liechtenstein Token Act. With the first tokenized shares of a legal entity in Liechtenstein, history was written on September 21, 2020 when equity tokens for registered shares were generated. This can also be inspected on the Ethereum mainnet. Amazing Blocks offers a software solution to support the tokenization of shares. It leveraged its own software solution, the Tokenpad, to tokenize its own shares. This software could also be applied to tokenized other assets and rights of Liechtenstein legal entities such as participation rights or ownership rights — for example when real-assets such as classic cars, real-estate, machines, watches etc. are tokenized.

Tokenizing equity in Liechtenstein

Effective on September 21, 2020, the LegalTech and blockchain startup Amazing Blocks AG tokenized its shares in line with the Liechtenstein Token Act (TVTG) as the first in the world to ever do this. These are the first equity tokens for a Liechtenstein legal entity on the Ethereum mainnet. This is set to further establish Liechtenstein as a hub for blockchain. The company’s equity consists of 600 shares of which 400 and 200 are held by two shareholders. This can also be inspected on the Ethereum mainnet. Recently, Amazing Blocks AG was listed in the commercial register of Liechtenstein. The International Token Standardization Association (ITSA) awarded XJJB-H6YC-2 as the International Token Standardization Number (ITIN) to Amazing Block’s tokenized shares. Note that the shares are privately held and are not publicly traded.

Amazing Blocks: service provider for tokenization in Liechtenstein

Amazing Blocks offers the Tokenpad — a software-as-a-service — that delivers a client-focused solution to support the tokenization of shares and other assets in Liechtenstein. It is a management software for digital legal entities in Liechtenstein, where the entire life cycle is supported (e.g. investor onboarding, tokenizing shares, role assignment etc.). Liechtenstein legal entities can tokenize their equity with this solution themselves. The key user of the software is the Board of Directors which in a legally binding way is executing the tokenization of the shares (or of other assets) with the support of the software.

Figure 1: Possibilities with the Tokenpad of Amazing Blocks

How the first equity tokens will set an example for future entrepreneurs and investors to come

Many people are still sceptical about blockchain technology and tokenization. However, observers of the digital asset markets such as Finoa predict staggering growth to come. They estimate a total volume of tokenized assets of around USD 24 trillion by 2027. Today, we are seeing the beginning of this growth as more and more tokenization possibilities are unlocked — including equity tokens in Liechtenstein. As Deloitte also put it, tokenization will make the financial industry more accessible, cheaper, faster and easier, thereby possibly unlocking trillions of euros in currently illiquid assets and vastly increasing the volume of trade. Most interesting in this regard will be the tokenization of real-assets such as classic cars, real estate, machines, watches and other assets.

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Digital legal entities in Liechtenstein based on true equity tokens to tokenize any asset in a standardized way to save time and money. - www.amazingblocks.io