The Lithianian tokenization platform Desico conducted own successful STO in November 2018, and helps now to do an STO to one of the major clients. This unique practical experience our Chief Editor discusses with Laimonas Noreika, Desico CEO:
Q) First about Desico, what makes you stand out in comparison to other STO platforms, like Polymath, Securitize etc?
The tokenized securities market is still in its infancy stage, therefor all constructive players are needed and appreciated. While many of the established platforms focus on creating paths to enable big investment funds to enter the market, DESICO is focused on retail investors.
Q) Are you an issuance platform only, or provide other services, compliance, custody?
DESICO is aiming to become a one stop shop for the businesses to issue and trade security tokens. After the successful STO in November 2018 we are already onboarding our first clients. Businesses wishing to issue their securities via DESICO platform can expect legal and financial counseling, accounting of issued securities in financial brokerage firm, accounting of emission on Nasdaq Baltics, Know Your Customer (KYC) and Anti money laundering (AML) processes etc. We have practical experience of entire cycle of STO and the licences needed to lead the EU compliant issuance of tokenized securities.
Q) Lithuania enjoys one of the world’s most advanced regulatory regimes towards digital assets. How was your hands on experience with getting licensed?
Lithuanian fintech market is developing extremely fast. With companies like Revolut or Google choosing our jurisdiction, this small country is more and more branded as fintech heaven, thanks to our policy makers in the government. As for Desico, our communications with regulators are fluent and fruitful.
Q) I noticed you are also licensed for secondary trading? What is your strategy here? How will you attract other tokens to your trading platform?
Yes, we have recently acquired Financial Brokerage firm which holds MIFID II licence. It allows us to operate a regulated securities exchange. However, we are now focused on a primary market. We see primary market as a funnel of clients to our secondary market.
Q) Who do you think you main competitors are in the Baltics, in Europe and globally?
All parties working in tokenized securities market should join forces and work for a better environment for investors and projects. We observe new players emerging every day in different parts of the world. However, we see Europe and USA leading the way.
Q) You made headlines on your planned cooperation with Paysera. How will it work? What is your sales target?
Paysera is a well established company, counting 15 years of its activity in more than 140 countries worldwide and heading towards setting up Paysera Bank. The aim of the project is to attract thousands of unique investors and the investment of 2.5 million Eur. The Paysera STO starts April 30th, 2019.
Q) What are the obligations of the issuer in case of Paysera? Will they pay dividends to those who will purchase their security tokens through you? If yes, will they be distributed back to investors through your platform?
Paysera undertakes the obligation to pay 10% of gross profit (revenue-direct costs) from its new clients, registered after STO round. The dividends will be paid out through DESICO platform.
Q) Will Paysera token owners have voting rights? Will they be able to exercise their rights through your platform?
No, Paysera token owners will not have voting rights.
Q) What is your assessment of the ST market capitalization in the near, mid term and long term future?
I personally believe that it will take time. I think that in year 2019 and most likely in 2020 too, it will still remain relatively small. However, it will be huge in around 2025. People tend to overestimate what can be done in a short term, and underestimate the long term results. Desico is here for a long term run.