Monaco signs MoU with Tokeny Solutions to for new Security Token Offering law

The principality of Monaco has selected Tokeny Solutions as its Tokenisation Partner

Monaco’s Office of Digital Affairs has announced today that the government has signed a Memoranda of Understanding (MoU) with Luxembourg based blockchain start-up Tokeny Solutions.

The MoU is aimed at fostering greater compliance to tokenised financial instruments in the Principality of Monaco. It coincides with a Security Token Offering (STO) law that was voted in by the country last week. The collaboration is set to support Environmental and Social Governance projects (ESG) that are expected to be approved by the government.

The move is anticipated to spur increased financial activity in the ultra-rich country where one in every three people is a millionaire: “Monaco is moving towards its ambition to become a funding nation for progress with our STO framework,” Principality of Monaco Delegate for Digital Affairs, Frédéric Genta said in a statement. He further stated that the STO law recently passed by the government and the collaboration with Tokeny to operate the STOs are two key milestones that will aid in the process.

Speaking about the collaboration with Monaco, Pierre-Edouard Borderie, a member of Tokeny’s board of directors said that: “As a strategic investor in Tokeny Solutions, we are pleased that the Principality of Monaco has appointed the company as the tokenization platform of government-approved innovative projects.”

The FinTech company is currently setting up a subsidiary in Monaco and the MoU will enable the Principality to “to apply control and compliance to the Ethereum blockchain,” a press release by Tokeny Solutions stated.

The collaboration is set to encourage project development by granting an official seal of approval to qualifying projects. The environmentally-focused project by IceBreaker, the production company of Oscar-winning documentary filmmaker, Luc Jacquet, is going to be the first project on board for the initiative.

The collaboration will allow projects like IceBreaker to route to funding while still preserving all associated ties. Luc Falempin, CEO of Tokeny Solutions, explained that the IceBreaker project is looking to raise around $50 million and is planning a number of other projects as well as making a movie.

Speaking about Monaco’s aspirations to become a Funding Nation for a global market where quality projects are developed and financed, Falempin said  “[Monaco] doesn’t have much financial activity at the moment, so they took this opportunity with security tokens to prove to Europe they can do compliant, on-chain finance.”

“Most of the high-net-worth people in Monaco are buying real estate to park money. The idea now is for investors and money in private banks in Monaco to invest in green projects,” he added.