Frequently Asked Question

About micobo

What kind of product & services does micobo offer?

We understand the challenges of digitalization and want to take advantage of the opportunities that it brings to create more secure and efficient capital markets. With the integration of blockchain and technology and DLT, every business process can be done in a more affordable and faster manner. micobo provides the tech-infrastructure and professional expertise to compliantly tokenize assets and digitalize investment processes.

Is micobo a regulated financial institution?

No, and we do not require to be. We are a technology provider offering tokenization infrastructure across multiple industries. We do not directly issue the security tokens/digital assets but enable the digital asset servicing for primary and secondary markets to issuers.

What is an “enterprise tokenization solution”?

Our solution is an enterprise-grade one-stop-shop solution enabling financial institutions and corporations to issue and manage security tokens/digital assets. From primary markets to secondary markets, our enterprise tokenization solution covers all the digital investment processes, including investors’ KYC/AML validation, custody, and registry. With modular structure, our clients benefit from a tailor-made feel solution that adapts to their market’s needs.

Why is micobo’s enterprise tokenization solution a “white-label”?

Our solution has a modular structure, allowing it to adapt to our clients’ needs. Each client receives an independent WebApp, customized with their corporate identity. Additionally, our clients, as administrators of their platform can edit the different modules, modify their projects, and manage their investors.

How can I get micobo’s enterprise tokenization solution?

Micobo’s enterprise tokenization solution is available as a Software-as-a-Service and API. Get in touch to learn how we can empower your business! info@micobo.com

How long does it take to set up micobo’s tokenization solution?

Since we do not offer a one-size-fits-all solution, there is some minimum time required to customize your platform (independent WebApp & domain) to your corporate identity and market needs (i.e., KYC/KYB & AML questions, project(s) information, selected wallets, etc.). This usually takes us 1-2 months.

Does micobo offer marketing support?

No, we are technology providers and only offer the infrastructure to tokenize and manage assets. However, thanks to our years of working in this emerging industry, we have formed a network of partners and are always more than happy to introduce you to the best agencies involved in the digital assets sphere.

Does micobo offer legal advisory?

Basics

What is DLT?

Distributed Ledger Technology refers to decentralized databases managed by multiple participants, across multiple nodes. Blockchain is a type of DLT where transactions are recorded with an immutable cryptographic signature called a hash. The transactions are then grouped in blocks and each new block includes a hash of the previous one, chaining them together, hence why distributed ledgers are often called blockchains.

What is blockchain?

In simple terms, Blockchain technology is a record-keeping tool. Within the Blockchain, the ledger is decentralized because it is distributed among a network of computers. Thanks to this structure, there is no hierarchy and all the transactions are managed by the different computers acting as the ledger.

What are digital assets?

The digital representation of an asset (tangible or intangible). In an ever-more digitalized world, most of our interactions are being done with digital means. We are sure that the capital markets and most of the industries around the globe are going to enhance this reality. Thanks to blockchain and other DLTs, we can now represent any asset digitally, with the immutable guarantee that it sustains the rights/duties of the real-life asset for its holder.

What is tokenization of assets?

Tokenization of existing assets refers to the process of assigning digital value to a physical object, an intellectual work, or a financial asset. So for example, through decentralized technology, one can convert property rights into a digital token. Here, tokenization offers earlier liquidity, a broader fundraising base, and far lower issuing costs than traditional systems.

What are security tokens?

In simple words, security tokens are digital securities. These represent tokenized (digitalized) investments/financial instruments that are intended to comply with applicable regulations for securities. They are therefore officially approved securities in token form. Therefore, security tokens function as investment contracts wherein the purchaser anticipates future profits from dividends, revenue share, or market appreciation. The concept of “tokenization of assets” refers to the process of issuing a Security Token, where the tokens that are created, representing a real tradable asset digitally, can be offered publicly to investors. With this, previously illiquid assets are being tokenized, unlocking trillions of euros.

Technology

Can we integrate micobo’s API?

Yes, micobo has developed a simple and robust REST API to integrate our tokenization solution into your existing investment & asset management applications and services. Interested? Please reach out! info@micobo.com

How can I access micobo’s API documentation?

If you would like to have access to micobo’s API documentation, please reach out to us at info@micobo.com

What blockchain protocol is being used by micobo?

The settlement for the primary-market transactions happening on-chain occurs on the Ethereum mainnet. The secondary market transactions are based on layer 2 solutions/protocols and DeFi agents, like Uniswap.

What is the token standard used for smart contracts?

We deploy dynamic tokens, ERC20 & ERC1400 compatible. We made sure our tokens can be transferred according to the popular ERC20 standard to enable widespread adoption. Newer functionalities like transferWithData and the use of partitions are also possible with the inclusion of the ERC1400 interface. All popular wallets and DeFi protocols are therefore within the realm of possibility for your token.

Are your smart contracts open-sourced?

Yes! We believe in the disruptive power of blockchain, and particularly of Ethereum. That is why we want to keep supporting the adoption of this technology for capital markets. To contribute to a strong foundation for these new ecosystems that enhance the financial industry, we made our Ethereum Security Token standard open-source. Go and visit our Github repo to learn more!

Legal

What is an STO?

STO stands for Security Token Offering. Based on the idea of a digital and open Initial Public Offering, STOs aim to raise capital through tokenized securities/financial instruments.

How long does it take to launch an STO?

On average, it takes between 1 to 6 months depending on the financial instrument. Keep in mind that, although our tech infrastructure to issue security tokens is agnostic to several jurisdictions, and can be easily adapted to different legal requirements, the public offerings (especially those targeting retail investors) have to usually be approved by local regulators and regulatory authorities. Naturally, we cannot control these processes.

What is the difference between an STO and crowdfunding?

Crowdfunding is aimed at startups that still have no funds and are almost starting from zero. Capital raising is aimed at secure, mature companies that need money for a specific project. However, some jurisdictions, as the US, understand the issuance of tokens aiming to participate tokenholders in the future earnings of the issuers as securities or financial instruments. Most jurisdictions with active tokenized markets adopt a technology-neutral approach to regulation for financial services, which they also apply to tokenized assets and their markets (e.g. European Commission - ESMA, FCA, US regulators - SEC). Usually, STOs are aiming for bigger volumes, whereas crowdfunding-like issuances do not surface the thresholds generally established in different jurisdictions (i.e., 1.5 M EUR/USD). Hence, these tend to be exempted from most of the regulatory requirements, such as publishing a prospectus.

Where to find us

HEADQUARTERS

Frankfurt

micobo GmbH
WeWork
Taunusanlage 8
60329 Frankfurt am Main
Tel.: + 49 (0) 69 870 0990 82