Next month, Logical Pictures will launch a $ 121 million (€ 100 million) STO on Tezos: "21 Content Ventures". This will not be a tokenization of real estate. Logical Pictures is a well known production company in the European Film and series industry and 21 Content Ventures will be tokenizing the future portfolio of films and series that will be produced. "As a result, each title (represented on the Tezos blockchain by a security token) will offer more liquidity and transparency than a traditional share of funds." Besides value appreciation, an extra anual return is expected between 4% and 6%. The 21 Content Ventures STO will launch in January 2021. The initial offering will not be for the average investor, it will be open to qualified investors with an investment threshold starting at €100k.
The reasoning to go for an STO instead of a traditional offering is consistent with the value proposition of the STO model:
"The advantages of tokens compared to traditional securities: the ability to bring liquidity to a usually liquid investment (21 Content Ventures being an evergreen fund, i.e. with no limited life, as opposed to traditional private equity funds) and the gain in transparency in the allocation of revenues from the portfolio of films and series held by the fund."
Tezos was chosen for its energy-efficient technology (LPoS) and the enhanced security through qualities as formal verification and a stable network that has proven its value in the close to 2.5 years of flawless functional mainnet.
Interesting fact is that BNP Paribas is part of this project. BNP Paribas is one of the largest banks worldwide with 202,624 employees, active in 72 countries and 2,040 billion Euro's worth of assets. BNP Paribas is working on the DIBC (Digital Interbank Currency) project, which is exploring possibilities of the exchange of assets and fiat on blockchain. Tezos and Ethereum are both selected for this project as announced last month.
The 21 Content Ventures STO is a quite identical to this concept and executed in live form. "Investors will be able to subscribe to their tokens and then manage them on a web platform interfaced with BNP Paribas' systems, accessible via 21contentventures.com."
BNP Paribas is seriously expanding its abilities on blockchain asset management. As mentioned by Alain Breffeil, Director of Corporate Clients and member of the Executive Committee of BNP Paribas' retail banking in France:
" In assisting Logical Pictures in the creation of this new fund dedicated to audiovisual production, our teams were able to put their expertise in the application of blockchain technology (DLT, tokenization) to good use. They were also able to ensure the proper application of compliance rules, while ensuring the security of flows and distribution to investors. As a major European film bank, we are very proud to contribute to the creation of this new innovative project that will accompany the development of the audiovisual industry,"
The 21 Content Ventures STO is another real-world use case where big entities deploy their solution on Tezos, setting the stage for what seems inevitable: an explosive growth in the years to come.
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