Malta-based blockchain technology company, Palladium, has launched the first fully regulated Initial Convertible Coin Offering (ICCO) in the world in partnership with Unikrn and Bittrex. According to a recent release, the ICCO was launched to give investors a significant stake in the future of digital currencies.
Top financial regulatory body, Malta Financial Services Authority (MFSA), reportedly authorized the issuance of the tokenized convertible warrant which will enable investors to manage and convert their tokens into shares of Palladium after three years of issuance. The CEO and founder of Palladium, Prof. Paolo Catalfamo, said that:
“We expect this project, which will create more than 100 job opportunities, to be a historic landmark and to bridge the gap between traditional financial services and cryptocurrencies.”
While speaking during the official launching of the ICCO which held at the Malta Stock Exchange, Valletta, Prof. Catalfamo stated that the platform was an innovative solution to the most significant setbacks that the widespread adoption of the digital currency market has experienced which is the uncertainty in the administration of cryptocurrencies as well as supervisory doubt with their use.
The exchange is expected to function under the full regulatory guidelines of Malta’s crypto-friendly jurisdiction and built with about 15% of the raised funds. The remainder will be reportedly used for the “acquisition of a controlling interest in a European bank,” and “strategic investments in financial services and blockchain companies complementing Palladium’s business.”
The company reportedly marked €150 million as its fundraising target, while the pre-sale of Palladium tokens has already started. July 25 to September 30 was reportedly set as the offering period for subscription of the tokenized securities. An ICCO Investors’ option to convert tokens into company shares in the future, differentiates it from an ICO, which is three years after the sale in Palladium’s case.
Notably, Malta is rapidly emerging as a ‘blockchain island,’ so it was the likely choice for Palladium’s headquarters. Top dignitaries such as Prime Minister Joseph Muscat, Financial Services Parliamentary Secretary Silvio Schembri, and MFSA CEO Joseph Cuschieri attended the ICCO launch.
Prof. Catalfamo expressed his admiration for the Maltese government for its crucial role in setting proper guidelines and regulations for blockchain technology. He said “Malta is enacting a comprehensive blockchain legislation and has a dedicated blockchain unit at the MFSA. This is attracting talent and creating a vibrant environment for the development of Palladium’s business.” He added that:
“This ICCO is one of the most unique investment opportunities in the blockchain world. Institutional investors recognize the scale of the opportunity, but the lack of regulation has kept them watching from the sidelines. Palladium’s solution will change this. Cutting-edge blockchain technology will allow customers to use regulation-compliant, multi-asset accounts to manage fiat and crypto currencies.”
The founder of Unikrn and former CEO of Microsoft Ventures, Rahul Sood, who also happens to be a shareholder in Palladium, reportedly noted that: “There’s nothing like this in the history of banking or cryptocurrency. Palladium has found a way to solve some of cryptocurrency’s biggest drawbacks with a single solution within existing regulations.”