Bitfinex Securities leverages blockchain technology to enable investments in a representation of a company's shares or debt on the blockchain, both on the primary and secondary markets.
It allows firms to raise funds through a tokenised capital raising platform or by listing directly on the exchange.
Your company will be able to raise capital via Bitfinex Securities Ltd’.s Capital Raise option. Following the completion of the offering, Bitfinex Securities will provide you with access to secondary markets (also called the aftermarket) where your tokenised shares can be exchanged directly.
How to become a Bitfinex Securities Capital Raise platform issuer
1. Firstly, contact our Listing team to make sure your project complies with The Astana International Financial Centre (AIFC) regulations. You can reach out to our team by filling out the form on our Capital Raise page found here.
2. After you've successfully completed Step 1, you can register your project on Bitfinex Securities. Prepare a prospectus or offering document and the required supporting documents, then contact our listing analyst.
3. Upon acceptance to participate in Capital Raise, you will need to provide us with all relevant details about the capital raise, such as the time frame for which the investment will be available to sell, soft caps, maximum amount, etc.
4. If the Capital Raise is a success, you will get the funds raised and the investment tokens are to be distributed following the Capital Raise event.
5. As mandated by the AIFC market rules, the reporting entity is to provide updated financial statements or reports (as applicable), on a quarterly or yearly basis.
How will the securities tokens be distributed
After a capital raise, security tokens would be distributed in one of two ways:
- First-in, First-out (FIFO);
The allocation model will be set out on the capital raise page of the issuer’s offering.
First in, first-out (FIFO), or first-come-first-served, refers to the distribution of tokens in the order in which the pledged funds are received, with the earlier timestamped contributions receiving tokens before the later timestamped ones.
Pro-Rata is where each eligible member can pledge to contribute an amount for the capital raise and will receive a proportionate allocation of tokens based on how oversubscribed the raise is (the total pledged by all members).
After you indicate your interest in a capital raise offering, a hold will be placed on the pledged funds in your Bitfinex Securities wallet. When the capital raise event ends, Bitfinex Securities transact the pledged assets for the security tokens.
As regulations may require to first distribute the funds to the issuer, members may see their pledged funds debited without seeing a security token credit. If this happens, know that the funds are not lost. Bitfinex Securities aim to have this transaction occur within the same business day and possibly within the same hour.
If you have any additional questions about the platform, contact Bitfinex Support for further assistance.