Malta-Based Blockchain Company Launches World's First Initial Convertible Coin Offering

10th July 2018

The issuance of a tokenised convertible warrant will give investors the right to convert the tokens into shares of Palladium three years after the issue date.

Palladium, a Malta-based blockchain company, has launched the world’s first fully regulated Initial Convertible Coin Offering (ICCO) to give investors peace of mind and a stake in the future of virtual currencies.

The issuance of a tokenised convertible warrant — which is regulated by a prospectus approved by the Malta Financial Services Authority (MFSA) and subject to stringent EU rules — will give investors the right to convert the tokens into shares of Palladium three years after the issue date.

Prof. Paolo Catalfamo, founder and chairman of Palladium, said: “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.”

Speaking during the launch held at the Malta Stock Exchange in Valletta, Prof. Catalfamo said the Palladium platform was a revolutionary solution to the biggest obstacles to widespread crypto adoption: cumbersome management of cryptocurrencies and regulatory uncertainty surrounding their use.

Prof. Catalfamo praised the Maltese government for being at the forefront of regulating blockchain technology and 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: “This ICCO is one of the most unique investment opportunities in the blockchain world. Institutional investors recognise 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 launch was attended by Prime Minister Joseph Muscat, Financial Services Parliamentary Secretary Silvio Schembri, and MFSA CEO Joseph Cuschieri. 

The fundraising target is €150 million and the pre-sale of Palladium tokens starts today. The offering period for subscription of the tokenized securities will run from July 25 to September 30.

Proceeds will be used to support the three core blocks of Palladium’s solution: 50 per cent will go towards the acquisition of a controlling interest in a European bank; 35 per cent into the formation of a regulated crypto exchange and the development of a clearing and settlement blockchain platform; and 15 per cent into strategic investments in financial services and blockchain companies complementing Palladium’s business.

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