Malta-based blockchain company Palladium is launching the world’s first so-called initial convertible coin offering (ICCO). According to the press release published on July 10th, the aim is “to give investors peace of mind and a stake in the future of virtual currencies.”
The launch was made at the Malta Stock Exchange, a few days after Malta’s parliament approved of a blockchain regulatory framework through three separate Bills. According to the Medium blog post, the launch was attended by Prime Minister Joseph Muscat, Financial Services Parliamentary Secretary Silvio Schembri, and MFSA CEO Joseph Cuschieri.
Proud to welcome https://t.co/x10dOsKdgJ project to #Malta This new venture, with participation of @BittrexExchange and @UnikrnCo will offer an exciting innovation in the #blockhainisland ecosystem -JM pic.twitter.com/8wnuNqHgct
— Joseph Muscat (@JosephMuscat_JM) July 10, 2018
Palladium is a blockchain platform giving users a simple, unified crypto and banking experience. Its mission is to provide customers with a singular, unified interface to manage their various asset classes and to access a wide array of services denominated both in fiat and in crypto currencies. The Palladium network enables customers to freely exchange assets without worrying about denomination.
According to Palladium chairman Prof. Paolo Catalfamo, the Palladium platform is a revolutionary solution to the biggest obstacles to widespread crypto adoption: cumbersome management of cryptocurrencies and regulatory uncertainty surrounding their use. He said:
“We expect this project, which will create more than 100 job opportunities, to be a historic landmark and to bridge the gap between traditional financial services and cryptocurrencies.”
“This ICCO is one of the most unique investment opportunities in the blockchain world. Institutional investors recognize the scale of the opportunity, but the lack of regulation has kept them watching from the sidelines. Palladium’s solution will change this. Cutting-edge blockchain technology will allow customers to use regulation-compliant, multi-asset accounts to manage fiat and crypto currencies.”
The press release states that the issuance of a tokenized convertible warrant is regulated by a prospectus approved by the Malta Financial Services Authority (MFSA) and is subject to stringent EU rules. Investors will be given the right to convert the tokens into shares of Palladium three years after the issue date.
The fundraising target is €150 million. The pre-sale of Palladium tokens started on Tuesday. 50 percent of the proceeds will go towards the acquisition of a controlling interest in a European bank; 35 percent into the formation of a regulated crypto exchange and the development of a clearing and settlement blockchain platform; and 15 percent into strategic investments in financial services and blockchain companies complementing Palladium’s business. The offering period for subscription of the tokenized securities will run from July 25 to September 30.
Palladium partners with such platforms as Unikrn and Bittrex. At the launch, Bittrex CEO Bill Shihara said he is pleased to cooperate with Palladium. He said:
“We’re committed to advancing blockchain technology and identifying projects that highlight its potential benefits. Our partnership will launch a new trading platform powered by Bittrex technology, and its customers will have access to the large selection of innovative utility tokens listed on Bittrex, which we chose using our industry-leading token review process. We’re excited that this project will help further increase adoption of blockchain technology and continue to expand our business globally.”
Among outstanding personalities involved in Palladium team are the former CEO of Microsoft Ventures, the former attorney at the US Securities Exchange Commission, and the former managing director of Credit Suisse.
Malta is known for its friendliness to blockchain. For providing a blockchain-conducive environment, Malta is often termed as the Blockchain island.
Currently, Malta is actively working on becoming the friendliest jurisdiction for firms dealing with cryptocurrencies from all over the world. Some crypto companies have already moved their offices there. As was reported by CoinSpeaker, the parliament was going to approve three cryptocurrency bills designed to bring changes to the blockchain sphere. In October, The University of Malta will start offering a specialised degree in the field of blockchain and cryptocurrencies. Moreover, the Malta Financial Services Authority (FSA) has proposed a test to identify ICO classification as securities.