Liechtenstein’s Financial Market Authority (FMA) expanded its horizons this week after the decision to approve the AARGOS Global Real Estate Fund. AARGOS is the first tokenized Alternative Investment Fund (AIF) to receive approval by the country’s regulators to date. The decision to approve the fund signals a strong desire by Liechtenstein’s officials to embrace innovation concerning blockchain-based financial vehicles.
Tokenized Alternative Investment Funds (AIF)s
As the first tokenized Alternative Investment Fund to receive approval from FMA, AARGOS needed to meet some stringent standards. For one, AIFs are regulated by the European Union (EU). EU regulators require adherence to all AML and KYC procedures. Importantly, Liechtenstein is not a member of the EU, but since it complies with the necessary regulations, the EU allows the country to participate in its market.
Unlike traditional AIFs, tokenized funds are able to integrate these requirements directly into the security token’s protocol. In this manner, investor eligibility becomes an integral part of the token. Additionally, verified investors become part of the on-chain whitelist. In turn, it’s faster and more secure to make future investments.
AARGOS Objectives via Website
These fully compliant tokenized real estate funds provide a host of advantages over their traditional counterparts. Primarily, they provide global investors access to the fund. Additionally, the fund can contain a global real estate portfolio, as is the case with AARGOS.
AARGOS
The AARGOS Global Real Estate Fund is a Subfund of the AARGOS Funds SICAV. Consequently, AARGOS security tokens represent economic interests in the AARGOS global real estate portfolio. Importantly, each token is a digital representation of one share. These tokenized shares live on the Ethereum blockchain. The decision to utilize an ERC-20 compliant token is a wise choice as ERC tokens are the most popular style of security token in use. As such, these tokens feature additional interoperability.
Strategic Partnerships
As part of AARGOS’s overall strategy, the firm developed a number of important strategic partnerships. Currently, their team consists of Ahead Wealth Solutions AG, Vaduz (Asset Management), Arcinvest AG, Vaduz (Portfolio Management), Bank Frick & Co. AG, Balzers (Custodian Bank and Transfer Agent), Grant Thornton AG, Schaan (Auditor) and Grisogroup, Dubai (Global Real Estate Management).
For their part, Vaduz-based Ahead Wealth Solutions agreed to establish the real estate fund. Ahead Wealth Solutions is well-known as an innovative financial service provider in the region. Additionally, Switzerland-based Token Factory worked with Bank Frick to tokenize the fund. Notably, the Token Factory handled most of the technological aspects of the tokenization. These steps included tasks such as programming smart contracts with regulatory compliance mechanisms. The integration of these regulations ensures that each token remains compliant through its entire lifecycle.
AARGOS – Liechtenstein – The Future
Liechtenstein continues to boost a pro-blockchain reputation. The country remains at the forefront of the blockchain revolution. AARGOS receiving approval for its AIF is an important milestone in blockchain adoption across the entire EU market. You can expect to see both AARGOS and Liechtenstein capitalize on the jump-start in the market.
The post AARGOS Tokenized Alternative Investment Fund (AIF) appeared first on Securities.io.
source https://www.tokentalk.co/Securities/aargostokenized-alternative-investment-fund-aif-5e2b7c91ddcbf1085ee12374
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