We’ve been executing successful token sales
for as long as they’ve been a thing

Diacle, Britain’s first blockchain-focussed regulatory consultancy, offers full-service STO setup, regulatory support, and project management.

 
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Our Process
Three phases to STO Success

 

Phase 1
First Steps & Team Building

The first 2-3 months of an STO campaign are devoted to building the foundation for your fundraiser’s success.


We must first work together to develop a structure for your company and for your offering. An important element of this process is jurisdictional selection according to how your STO will fit into establish regulatory standards.

Duration: 2-3 months

Objectives

  • Corporate Structuring

  • Documentation (investor memorandums, prospectuses)

  • Team building (legal, marketing, and tech)

Phase 2
Marketing &
Contracts

The second phase of STO setup is when we set up your token sale’s outreach. This, of course, is a process that must be take carefully

Security token offering project teams should not make the mistake of thinking they can simply advertise their token sales. Every word of your marketing materials must be looked through with a fine tooth comb. We’ll take charge of this process.

Duration: 2-3 Months

Key objectives:

  • Marketing (web, content, pitch decks)

  • Token issuance platform

  • Documentation and contracts (SAFTs, token sale agreements)

  • KYC/AML policy development

Phase 3
Roadshow

The final months before the launch of your STO will be spent attending events, speaking with investors, and building partnerships.

During this time, Diacle will serve as your “back office,” negotiating with regulators and obtaining licenses as needed. We will also begin whitelisting investors using our unique RegTech solution, powered by our partners at Blockpass.

Duration: 2-3 months

Key objectives:

  • Negotiations with the regulator and licensing

  • Roadshow support

  • Investor whitelisting

STO Fundraising
Benefits

Compliance

As Security Token Offering frameworks mature it will become clear that these kinds of token sales automate compliance. Even when dealing with cross-border regulatory requirements many of the more mundane day-to-day tasks of 3rd party service providers such as bankers, lawyers, and brokers will be eliminated from their schedules.

Efficiency

Programmable - "smart" - securities feature rapid fire settlement and a high degree of asset interoperability. Together with a secondary market that is open 24/7, reduced costs and saved time are likely to stimulate innovaton.

Transparency

Security Tokens, just like cryptocurrencies, are issued using blockchain technology. This means that an immutable record of ownership will exist on a distributed ledger. Changes in ownership are recorded as well and this prevents market manipulation and short selling.

Liquidity

One clear advantage of securities being issued using blockchain technology is the expanded, global, investor base. Another is the possibility of fractional ownership of new asset classes - such as art, real estate, and media - growing the market, as well. Additionally, friction relating to market access is entirely removed for many types of investors.

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Global Outlooks
Jurisdictional Selection

One of the key services that we offer to companies and projects that are interested in carrying out an STO is support in regards to jurisdictional scoping. Each jurisdiction has its plusses and minuses and requires careful consideration prior to initiating STO setup.

Bermuda

  • A new option for security token issuers that has been compared to Gibraltar and Malta.
  • The country's Banking Act has been updated in consideration of blockchain technology.

British Virgin Islands

  • Second largest crypto market in the world (after the US, before Japan).
  • Relatively low administrative costs.
  • Efficient, flexible, and modern bureaucracy and approach to commerce.

Cayman Islands

  • It is possible that your security token would not be considered a security here.
  • You may not need to register with the Cayman Islands Monetary Authority (CIMA).

Gibraltar

  • The Distributed Technology Providers Regulation (DLT) provides a well-defined regulatory framework for companies.
  • May be vulnerable to uncertainty following Brexit.
  • Low tax obligations.

Malta

  • Friendly regard towards blockchain technology.
  • Majority of crypto trading volume passes through platforms registered here.
  • Talks underway for legislation that provides a clear framework for entrepreneurs working with blockchain.

Other Options

We actively follow changes in the regulatory landscape in regards to blockchain technology and tokenized securities. We bring our findings to the table as we work with our clients.

Get in Touch

 

Diacle Limited
Suite 2 First Floor
151 Rye Lane
Peckham Rye
London
United Kingdom

info@diacle.com

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