This week, the German Federal Financial Supervisory Authority – BaFin approved the first cross-border security token offering (STO) in the EU. The STO would give the mobility and airport parking sector giant, ParkinGO the ability to further its market dominance. The news demonstrates an expansion of the EU STO sector, as well as, a forward-looking stance on the part of BaFin.
As the first cross-border STO, the crowdfunding event would reach more EU investors than ever before. According to regulators, the event allows for participation from 21 of the 27 EU member states. Importantly, BaFin approved numerous other STOs in the past, but the ParkinGO campaign is unique in many aspects. For one, regulators allowed issuers to maintain their investors register on-chain. Additionally, the system permits secondary transactions with all rights attached to the digital asset.
Discussing the pivot towards tokenization, Davide Rovelli, CEO at ParkinGO stated that his firm felt a sense of added “confidence” thanks to the integration of blockchain technology. He explained that the new system provided more flexibility and efficiency compared to traditional methods of crowdfunding. Specifically, tokenized securities reduce the settlement time of transactions from days to hours. Additionally, security token transactions cost just a fraction of traditional securities transactions and are more secure.
In order for ParkinGO to make its concept a reality, executives sought out the assistance of the token issuance platform STOKR. This Luxembourg-based issuance platform is recognized as an industry leader in the region. As such, the integration allows ParkinGO to cater to both institutional investors via private offerings and retail investors simultaneously.
Discussing the important milestone, Tobias Seidl, Product and Regulatory lead at STOKR took a moment to describe the features of the new investment vehicle. He explained that the instrument provided a true alternative in the market that provides benefits for investors, issuers, and regulators alike.
Those participating in the ParkinGO STO receive GOTS tokens for their investment. Importantly, GOTS holders receive a share of ParkinGO’s annual revenue comparable to the number of tokens they hold. These ERC-20 compliant security tokens live on the Ethereum blockchain. As such, they enjoy the highest level of interoperability available. Notably, these tokens utilize the STOKR Framework for smart contract programming. In this manner, STOKR created a unique hybrid-equity instrument that enables more transparency in the marketplace.
The Italian enterprise ParkinGO started off servicing the Milan Malpensa airport in 1995. Since that time, the firm expanded to become one of the largest parking conglomerates in the EU. Currently, the company provides parking for airports, ports, and train stations across 90 locations. These locations span 9 European countries and include 2.7 million customers.
ParkinGo Goes Digital
ParkinGo is ahead of the curve on its latest venture. Considering that the company is easily recognizable as a major brand across the continent, you should expect to see huge support from investors during the STO. For now, ParkinGO continues to cement its position as the leading parking and transportation service in Europe.