In a step towards actualizing Advanced Blockchain AG’s new and expanded vision, ABAG has decided to purchase a stake in FinPro. This company is an innovative blockchain-based crowdfunding platform that seeks to provide German residents with access to institutional-grade investment products in an efficient, cheap, and speedy manner.
More About FinPro:
FinPro seeks to innovate crowdfunding through the incorporation of blockchain technology. The resulting product is a blockchain-based platform that allows the fractionalization (breaking up) and tokenization of assets (such as real estate or debt-based products), which can then be sold to investors. This model will make use of the German laws that allow all residents to purchase assets on the blockchain, as delineated and overseen by the German Authorities (BaFin). Some of the many benefits of this model over present investment and crowdfunding options are as follows:
- Fractionalization of assets: Fractionalization can be defined by breaking down something into smaller parts. In FinPro’s case, this means breaking down assets into smaller portions for sale to investors. Blockchain enables fractionalization of assets, meaning that investments can be minute percentages of traditional assets. This means that investment minimums can be extraordinarily low, compared even to other crowdfunding platforms. Thus, these investments are open to a much wider audience. This is particularly true when compared to traditional investments like real estate investment trusts (REITs) or debt funds, which have investment minimums of at least tens of thousands of dollars.
- Ease of transfer of assets: The blockchain makes it easy to transfer ownership of tokenized assets. Many of these assets usually trade at a discount to net asset valuation, resulting from high settlement costs, lack of market depth, and pressure to buy and sell.
- Operational efficiency: Due to its utilization of blockchain technology, FinPro will have much faster and lower-cost settlement times compared to traditional transactions. Normally, in traditional financial structures, designated trust companies provide the final clearing and settlement for all public equity transactions, resulting in faster transaction settlement times. In contrast, by cutting out all middlemen and using smart contracts to automate a plethora of functions, the blockchain allows for fast settlement times for transactions. These transactions will also be much easier to execute on the user’s end, as we will design a user-friendly interface for our platform.
- Cheap investment capability: Due to this increased operational efficiency, overhead costs can be greatly decreased. For example, administrative fees alone can be reduced thanks to smart contract automation of these processes. Such a decrease in overhead costs enables investments to be cheaper to the FinPro user.
- Financial transparency: The vast majority of companies must report their financial files to a governing body. However, many investors are still left out of the loop, as they do not know what information they have a right to access, how to access it, or how to interpret it as it relates to dividends and other financial earnings. FinPro leverages blockchain technology to focus on utmost transparency and provides all documentation necessary for investors to make an informed decision on their investments.
How Advanced Blockchain AG is Involved:
Advanced Blockchain has acquired a stake in FinPro. In the coming months, ABAG will be accelerating FinPro to provide them with everything they need to be prepared for the upcoming launch of their platform. This includes the provision of product management, marketing, advisory, strategy support, and more.