– Auto1 FT increasingly relies on blockchain technology in the future
– Attractive investment with a 5% return for professional investors
– First security token offering of a used vehicle marketplace in Europe
– First security token offering in the German automotive industry
The fintech company Auto1 FT is issuing digital securities with a total value of up to four million euros in an effort to accelerate digital innovations. This is the first security token offering (STO) in the German automotive sector. With this bond, Auto1 FT seeks to offer professional investors an attractive investment opportunity in this highly scalable mobility sector. As to the conditions, the fintech promises a short maturity of just one year and an attractive interest rate of 5.5 per cent, in the case of quarterly interest payments. With the blockchain-based security token approach, Auto1 FT is also achieving a very high level of security for payouts alongside low fees and fast transaction processing. “With the new tokenisation financing, we are taking another big step that is generating great interest in the market,” says Managing Director Taimur Andre Rashid.
Auto1 FT has developed a product that supports car dealers by providing flexible and rapid liquidity. The supplier finances the purchase price of vehicles until their resale to the end consumer. The entire process is mapped out in digital form. The technological basis is a web platform that brings a high degree of automation to the financing processes. Investors benefit from several risk-reducing measures that are part of Auto1 FT’s business model – including detailed dealer scoring, risk pooling and depositing the vehicles as collateral.
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Numerous car dealers in several European countries have already joined the ranks of Auto1 FT’s customers. The innovative start-up is looking to gradually add further technologies and products to its complete, fully digital and secure end-to-end process of loan financing. “We’re set to become the Würth of the digital mobility industry. We’re hoping to offer our service on a worldwide basis soon,” says Rashid about his goals, adding, “With the security token offering, we provide investors the opportunity to participate in the upcoming growth of our fintech.” The market potential appears to be enormous. Rashid expects to achieve sales of 60 to 80 million euros in 2021. The scalability of the Auto1 FT systems provides a very sound foundation for this.
The issue of the digital bonds will be executed by iVE.ONE. This involves a market-leading regulated issuance and investment platform carried out by the Frankfurt-based fintech Agora Innovation. iVE.ONE permits global trading of digitised securities within the legal framework on the blockchain. Capital markets regulatory support is provided by Dr. Markus Kaulartz of CMS Law, one of the leading law firms in the field of tokenisation. Distribution will be handled by the securities trading bank Renell Bank, an experienced partner of iVE.ONE.
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“We are excited about working with Auto1 FT, an innovation pioneer in the auto trading industry, to provide the digital infrastructure for the issuance of their first digital security in auto trading,” says Phong Dao, CEO and Co-Founder of Agora Innovation.
The trend towards digital assets remains strong and continues to capture more and more sectors in the financial world. “We have conducted several cryptosecurities issuances in 2020 and have noticed that the market is maturing in areas ranging from regulation to technical infrastructure. With our platform iVE.ONE, we see ourselves as leaders in this segment,” Phong Dao added.
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