Genevan fintech Mt. Pelerin raised $2 million by tokenizing its own equity – a first in Switzerland.
Mt. Pelerin isn't yet Switzerland's first crypto bank, but the Genevan fintech firm took a step in the right direction with a rights issue to raise $2 million by issuing a token that is fully equivalent to one share, according to a statement on Tuesday.
The start-up said 570 investors ponied up the funds, investing an average $1,065. Mt. Pelerin wants to use the funds to build up its banking services. «Mt Pelerin ambitions to obtain a banking license in Switzerland by the end of 2019 and begin its operations in early 2020,» the company said.
Absent Investment Banks
Unlike the coins and tokens issued in a traditional initial coin offering, or ICO, Mt. Pelerin's investors are shareholders under Swiss law – a move which promises considerably more certainty than the murky fundraisings that other firms have attempted.
To be sure, Mt. Pelerin's free float of roughly 5 percent of its capital is minuscule, dramatically restricting shareholders' influence of the firm. The absence of investment banks on the fundraising is noteworthy, especially as the former head of Barclays' capital markets arm in Switzerland, Kuno Kennel, is an adviser to Mt. Pelerin.
