On-chain capital formation describes the process of raising funds or accumulating financial resources directly on a blockchain network. This often involves issuing digital tokens or smart contract-based financial instruments to investors. It leverages decentralized platforms for transparent and auditable fundraising activities. This method can democratize access to capital for projects and investment opportunities. It streamlines the issuance and distribution of digital assets.
Context
The current state of on-chain capital formation is characterized by various models, including Initial Coin Offerings, Security Token Offerings, and Decentralized Autonomous Organization treasuries. A key discussion involves navigating regulatory uncertainties and ensuring investor protection within these novel fundraising structures. Future developments include clearer legal frameworks for digital asset offerings and the emergence of more sophisticated on-chain financial primitives for capital allocation.
This strategic partnership establishes a Swiss-regulated DLT exchange to unlock illiquid commodity and IP assets, driving institutional capital efficiency.
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