The government of Monaco has formalized a Memorandum of Understanding with Tokeny Solutions as its technology provider to support the issuance of tokenized financial instruments.
The Luxembourg-based fintech, that is currently setting up a subsidiary in Monaco, and its range of blockchain-based solutions, will allow the Principality to apply control and compliance to the Ethereum blockchain. The initiative will support Monaco with its upcoming regulatory framework to become the world’s first state utilizing the benefits of decentralized finance (DeFi). Monaco’s aim is to become a Funding Nation for progress, a global market where quality projects are developed and financed. To qualify, the projects will require a mandatory label issued by the Ministry of State.
The lack of high quality tokenized assets has been a stumbling block in the tokenization industry. With the mandatory label, projects selected by the Principality of Monaco will be easily recognized by investors as serious and quality investment opportunities. Then, the rights of investors will be guaranteed by their onchain identity. For the issuer, AML and KYC will be automatically enforced in any transfer,” says Luc Falempin CEO of Tokeny Solutions.
The Principality of Monaco has passed a bill and a favorable regulatory framework to encourage projects from around the world to finance themselves through issuing tokenized securities. The framework will thus aim to protect investors and project owners through quality control of the issuing companies and of the investors. The complete regulatory framework is expected to come into force shortly.
“Monaco is moving towards its ambition to become a funding nation for progress with our STO framework. Two key milestones were achieved; a dedicated STO law was voted by the National Council and we are welcoming Tokeny to the Principality to operate our STOs,” says Frédéric Genta, Delegate for Digital of Affairs of the Principality of Monaco.
The projects raising capital will focus on environmental impact. IceBreaker, a production company from Oscar-winning documentary filmmaker Luc Jacquet (“March of the Penguins”) will be first to be onboarded by the initiative.
“IceBreaker intends to leverage the blockchain technology to facilitate the financing of meaningful content production while retaining all associated rights enabling thus new monetization opportunities via films, exhibitions, etc. March of the Penguins and the subsequent Antarctica exhibition have demonstrated that the model can be a profitable one making it appealing to investors while preserving the freedom to express my creativity and promoting the virtuous and value of the projects I carry,” says Luc Jacquet, Oscar-winning documentary filmmaker.