Malta-based cryptocurrency firm, Palladium has announced the launch of world’s first initial convertible coin offerings (ICCO) along with two partners including Bittrex. ICCO is a bit different from ICO, in which investors will able to convert the tokenized coins into company shares at a later date. In Palladium’s case, it can be converted after a period of three years after the sale.
This innovative offering will be regulated by a prospectus which needs to be approved by the Malta Financial Services Authority. Also, this project is subject to stringent European Union rules and regulations. Palladium, which wants to build a regulated exchange in the country is planning to raise $150 million through the distribution of the tokens in the ICCO which is scheduled to begin on July 25.
Palladium will utilize 15 per cent of the fund to build the exchange and the remaining portion of the fund will be used in acquiring controlling interest in a European Bank along with strategic investments in financial services and blockchain companies.
Palladium founder and chairman, Paolo Catalfamo made a statement marking the ICCO’s launch:
“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 crypto-currencies.”
Malta recently has legalised the cryptocurrency sector through the passage of cryptocurrency bills in the parliament. The country is rapidly emerging as a hub for blockchain and cryptocurrency related activities. Speaking at the launch, Malta’s Prime Minister Joseph Muscat said that blockchain technology would create a new niche for the island nation which would help in generating job and wealth creation.
He said: “The three pieces of Blockchain legislation which were passed in Parliament recently form the start of a new exciting journey putting Malta in the frontline.”
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