Aktionariat: Secondary Markets on Ethereum without Intermediaries

Transcript

Hi. Uh thank you for coming. Very excited to be here. I'm Murat Ergat, co-founder and CEO of Aktionariat. And we are a tokenization uh provider based in Switzerland which enables uh small and medium enterprises and private equity to tokenize and also enable uh markets, primary and secondary markets. So, quick word about Aktionariat is we started 6 years ago. So far, we tokenized more than 90 in Switzerland. The total value of our tokenized shares uh of all companies on our platform is more than 200 million francs.

And the total investment volume on our platform so far, primary and secondary, has exceeded 60 million francs. And we also have a mobile app for investors for self-custody that we provide. And we have more than 35,000 registered users of their uh of our mobile app who are interested in tokenized equity. Um so, basically, what do we offer? We offer a tokenization for first of all, but it's just a start. Uh after tokenization, we try to make tokens equity usable. And what we provide uh for uh companies is first of all the issuer portal where the entire offering around the tokenization can be managed.

They can see the shareholder register and so on. Uh I'll go into detail of each one of them. And the investor relations page and no-code page for investors uh that increases transparency and the integrated uh primary and secondary markets, primary for direct investment into the company without any intermediaries and the secondary trading uh with a order book. So, I'll briefly go um and show how this actually looks like live. So, um Not sure if you can see it, but this is our issuer portal. To my knowledge, this is the one of the most mature advanced management portals for tokenized equity.

And uh you can even start using this without tokenization. So, for free, you can sign up and start to manage your shareholder cap, uh your share classes. It works with traditional and tokenized shares together. So, even before you tokenize, you can actually start making use of this dashboard. And what you get is uh to briefly show you is uh first of all the list of uh shareholders. [snorts] So, you can have uh hundreds of thousands of shareholders, and you can see them all in this table. Some of our clients have more than 5,000 shareholders, which would be incredibly messy to manage without such a table and uh in a in a traditional way. And with through tokenized shares, it makes it easy. Uh you can see your share classes.

We support multiple share classes, traditional classes, tokenized share classes. You don't need to tokenize the entire company. Uh you can partially tokenize, or you can just tokenize one share class. And this is able to work with all of these cases. You can see all the transfers between your shareholders and investors through tokenized shares. This is also automatic. You can also manually add transfers for traditional shareholders. Uh traditional transfers and the tokenized transfers are detected automatically, obviously. Uh you have a on-chain treasury management where where you can see all your tokens. You have your multi-sig where you can execute corporate actions. Uh you can also control your markets here. So, the more interesting part uh and what I will show you is the investor page that we give to all our

issuers. Uh this is ours. So, but everyone has every issuer on our platform has such a page to just show an example. This is, for example, Example AG. Um this is for another company called Bossinfo with a market cap of 90 million francs. This is for Switzerland. Uh main All the companies have at the end such an investor page. You get the idea. And I will uh do a product demo on our own page. So, this is uh our investor relations page. Uh without even signing in, you can see a lot of information here about the company, for example, the total number of shares, the market cap, the tokenized amount, number of shareholders. You can check the legal

documents, which is the basis for tokenization, which rights this token give to you, token contract. So, even in the [clears throat] base case, it provides a lot of transparency for investors. And it's a good resource for investors to connect. Uh And you can see some business metrics. For example, this is the monthly trade volume in our case. And uh if you are signed in, you can also see your shareholder bonus. So, let me sign in. You can sign in either by a magic link or uh QR code or any wallet connection. Let me do this.

>> [clears throat] >> Yes, now I'm signed in with my wallet, which was connected to my shareholder account. So, the page knows who I am, which shareholder I am, and I'm able to access more information, for example, my positions in in the company, traditional tokenized balances. And more importantly, uh here you see two integrated markets. Uh this is also the uh most important feature that we have enabled to make markets. The first one is the direct investment.

And here you have uh pretty uh simple widget that allows you to buy shares directly from us. So, you can here uh the wallet is already connected. You can either pay by bank transfer or cryptocurrency. So, I'll just do both of them. I can simply enter that I want to buy 100 of our shares. Create the order. And you would get a QR code. Now, this if you pay this bill, this money will go directly into the bank account of the company, and the company would need to approve, which triggers an on-chain settlement. Since this is a bank transfer, you cannot settle automatically, obviously. But there is also a way to buy with cryptocurrency.

Which is as simple. You can select just cryptocurrency, and we use the Franken Coin, ZCHF, which is the Swiss franc-based stablecoin. Um If I now initiate a purchase, this will trigger a confirmation on my wallet. And we also sponsor these transactions, but this is a topic for another talk. Um And I wait for the confirmation, 12 seconds on Ethereum mainnet. Yeah.

And now actually automatically settled. My crypto francs are delivered to the contract, and my shares are arrived in my wallet. So, this is how it is easy to become a shareholder. Um And this is the primary market. So, the companies are using it for direct investment, directly selling their shares to investors without any intermediaries. We also have a secondary market. This is more an order book-based solution. And uh this is not for fundraising, but enabling a venue for existing shareholders and investors to buy and sell shares. And here you can simply have also a similar widget where you can first of all, see the order book. You can see your open orders, your trade

history. You can see all trades here. And if you want, you can enter uh your price. In the primary market, the price is controlled by the issuer. So, they decide at what price they want to sell the shares to the uh investors. But here, any investor or shareholder could enter their own limit price. So, let's say I want to buy 10 ducks for um six francs each. And uh which would not settle immediately because it will be just in the order book. Or let's say let's say 6.1.

And then I try to sign the offer. This will trigger uh EIP-712 signature in my wallet. I will sign an object, and this will be saved as an intent to trade. And uh let me do it. Yes. So, the buy order is placed. You can see now this didn't exist before. It's 6.10, and now it's in the order book. And other others can come and submit other orders. If some orders are already matching, they are executed immediately.

If some remaining part remains, then it's just put on the order book for later to match. Yes, and uh Yeah. Uh through this solution, the companies are actually able to operate a limited market uh on their own website and uh without any intermediaries, without any custodials, without any exchanges. But our tokens are of course compatible with all of the other DeFi. So, you can take our share tokens, use it as collateral, for example, in the Franken Coin platform or um any kind of DeFi platform is compatible.

You can take it to other centralized exchanges or custodials which are able to operate in ERC-20 tokens. Uh which makes it the the share even more useful. Yeah. Thank you very much. I mean, that's the product. If uh any questions, happy to answer. Thank you. Um you You were mentioning placing order books. >> Mhm. Do you have some market making or what's the liquidity? Do you organize it or it's purely organic? Mhm.

Yes, um I'm we are a technology provider. So, we are not in engaging. We cannot even engage in market making. And in reality, uh the company can participate also in the in the secondary market. So, if they like if they have a price that they want to buy or sell, they can operate a market. Anyone could come and also place a operate as a market maker. But mostly, what we see in practice is real shareholders that have invested years ago, and now they need liquidity and try to come and sell their shares, and some other new investors trying to come in at a favorable price. So, the liquidity is not too deep, but this is also a problem with private equity, you know. I mean, these type of companies are not as liquid as Tesla or Apple. so uh there's a certain liquidity. And what we

actually offer is if you start with this and the moment you reach a higher volume, higher market needs, then you can actually take your token and also apply for listings on for distribution on bigger exchanges. What about fees? The fees are taken on the investor side or taken on the issuer side? Mhm. I mean, as a company, we have a license fee yearly as a uh technology operator and then for primary investing, we charge 1.5% based on the net amount raised in the primary market and that we charge to the company and the secondary market we charge 1.9% and we charge this to the seller but

directly through the company. Side 1.5 and from the investor side 1.9. >> 1.9, yes. Okay, and the 1.9 applies also to the secondary Yes, at the secondary market, yes. Okay, so the last question, we are mentioning the collateral, is this something I can say is it an idea or do you think have you already implemented or can I like ST ETH use token like this to as a collateral? Yes, this is even already in production.

Some of our tokens are accepted as collateral. Now, this is another question, of course. The the platform that's currently using our share tokens as collateral is the FrankenCoin platform. FrankenCoin has an own bonus mechanism that you need to go through that accepts as collateral and what matters is that your company has some substance value. So, there are two companies around 100 million market cap which FrankenCoin knows that it will be able to liquidate at some price, so it is able to use as collateral to avoid incurring bad debt. But if you're a startup that just started with just an idea, probably it will be harder to let the FrankenCoin accept your share as collateral. So, in technically it works, practically you need to you don't bother with this FrankenCoin collateral. But

it's in life for two share tokens. Thank you.