The fintech company Auto1 FinTech is issuing digital securities with a total value of up to four million euros in an effort to accelerate digital innovations. This is the first security token offering (STO) in the German automotive sector. With this bond, Auto1 FT seeks to offer professional investors an attractive investment opportunity in this highly scalable mobility sector.
As to the conditions, the fintech promises a short maturity of just one year and an attractive interest rate of 5 per cent, in the case of quarterly interest payments. With the blockchain-based security token approach, Auto1 FT is also achieving a very high level of security for payouts alongside low fees and fast transaction processing. “With the new tokenisation financing, we are taking another big step that is generating great interest in the market,” says Managing Director Taimur Andre Rashid.
Auto1 FinTech has developed a product that supports car dealers by providing flexible and rapid liquidity. The supplier finances the purchase price of vehicles until their resale to the end consumer. The entire process is mapped out in digital form. The technological basis is a web platform that brings a high degree of automation to the financing processes. Investors benefit from several risk-reducing measures that are part of Auto1 FT’s business model – including detailed dealer scoring, risk pooling and depositing the vehicles as collateral.
Numerous car dealers in several European countries have already joined the ranks of Auto1 FinTech’s customers. The innovative start-up is looking to gradually add further technologies and products to its complete, fully digital and secure end-to-end process of loan financing. “We’re set to become the Würth of the digital mobility industry. We’re hoping to offer our service on a worldwide basis soon,” says Rashid about his goals, adding, “With the security token offering, we provide investors the opportunity to participate in the upcoming growth of our fintech.” The market potential appears to be enormous. Rashid expects to achieve sales of 60 to 80 million euros in 2021. The scalability of the Auto1 FinTech systems provides a very sound foundation for this.
The issue of the digital bonds will be executed by iVE.ONE. This involves a market-leading regulated issuance and investment platform carried out by the Frankfurt-based fintech Agora Innovation. iVE.ONE permits global trading of digitised securities within the legal framework on the blockchain. Capital markets regulatory support is provided by Dr. Markus Kaulartz of CMS Law, one of the leading law firms in the field of tokenisation. Distribution will be handled by the securities trading bank Renell Bank, an experienced partner of iVE.ONE.
“We are excited about working with Auto1 FinTech, an innovation pioneer in the auto trading industry, to provide the digital infrastructure for the issuance of their first digital security in auto trading,” says Phong Dao, CEO and Co-Founder of Agora Innovation.
The trend towards digital assets remains strong and continues to capture more and more sectors in the financial world. “We have conducted several cryptosecurities issuances in 2020 and have noticed that the market is maturing in areas ranging from regulation to technical infrastructure. With our platform iVE.ONE, we see ourselves as leaders in this segment,” Phong Dao added.
iVE.ONE provides access for corporates, institutional investors and asset managers to a modernized capital market with blockchain technology. iVE.ONE offers corporates and investors worldwide, a ready-to-use infrastructure for issuance and investments with an intuitive and user-centric interface for accessing digital assets and cryptocurrencies. This product is built on global regulation and compliance. iVE.ONE is funded by FinLab EOS VC, a collaboration between block.one and FinLab AG, tokentus Investment AG and High-Tech Gründerfonds.
About Auto1 FinTech
AUTO1 Fintech offers all relevant financial solutions and services for the used car market – completely digital, quick and easy. Our declared goal is an innovative financing and support to all areas of the mobility industry, worldwide. AUTO1 FT was founded at the end of 2017 and currently operates in Germany & France with headquarters in Berlin and Amsterdam. By the know-how, the experience and the economic strength of our investors and partners, we announce further international expansion.
About Renell Bank
Renell Bank has been an owner-managed private bank from Frankfurt for more than 35 years. It offers its national and international clients services in the areas of corporate finance and portfolio management. Excellent reputation and an experienced team are the basis for the sustainable growth of Renell Bank. The personal liability of the management, also as a shareholder, guarantees a special independence in the consideration of business decisions, a strict risk management, as well as continuity in the management of the company. Renell Bank is licensed and regulated by the German Federal Financial Supervisory Authority BaFin, Deutsche Bundesbank and FINMA (Switzerland). In addition, the Bank is a member of the Compensatory Fund of Securities Trading Companies (EDW).