Share Tokenization

Why tokenize your shares

Initial Coin Offerings (ICOs) have shown the potential to revolutionize traditional forms of fund raising, such as Venture Capital and Initial Public Offerings. However, ICOs have a major flaw: They do not convey any enforceable rights to tokenholders. Investors began to notice, and ICO funding dropped significantly.

Tokenized Shares combine the strengths of ICOs and traditional shares

Enforceable rights

Tokenholders become shareholders with enforceable dividend and voting rights.

Quick & low-cost process

The entire process can be done in weeks. No FINMA no-action letter required.

Easy transferability

The transfer of the token equals the transfer of the share. No wet or even digital signature is required.

How Share Tokenization works

The tokenization of your shares requires three layers.

Legal foundation

Amendment of the articles of association, board member resolution on the share token terms, investor documentation.

Smart contract

On-chain issuance of tokens on the Ethereum blockchain, declare loss functionality, connection with the share register.

Share register

With a smart interface, you can manage your share register, dividend payments and voting directly.

We work with trusted IT partner Aktionariat AG for the smart contract and the online share register.

Share Tokenization process

  1. 1
    Free consultation

    Free consultation and clarification of open questions relating to the legal & technical set-up and whether tokenizing shares makes sense for your business.

  2. 2
    Implementation

    Legal and technical implementation (3-5 weeks) & fundraising (optional – you can also simply tokenize your existing shares).

  3. 3
    Share distribution

    Distribution of your shares. Easy management of your share register & transferability of shares for your shareholders.

Share Tokenization fees

Tailored packages for specific needs

(A) The Workshop Package

If you wish to execute the legal part of the tokenization yourself but have any open questions or specific topics you wish to discuss, LEXR offers a one-hour individual workshop. For example, we can cover the following topics: 

Scope:

Corporate Law: 

How to create the share tokens (questions around ownership of own shares)?

Requirements in the articles of association and the registration agreement

Relationship between the Token Shareholders’ Agreement and existing Shareholders’ Agreement

Financial market regulation:

What are possibilities and limitations of marketing the share tokens in Switzerland?

Sale of tokens outside of Switzerland

Taxes: 

Potential tax consequences for the company and the shareholders 

Advice on possible tax rulings 

Flat Fee: CHF 600 (excl. VAT)

 

Book a free call

 

(B) The Public Sales Package

To ensure that everything is also implemented from a legal perspective in line with the current state-of-the-art, LEXR offers a full legal execution package. 

Scope:

Corporate Law: 

Advice on obtaining ‘own shares’ for the tokenization and public resale

Amendment of articles of association

Capital increase (drafting of all documents incl. communication with notary and commercial register)

Amendment of prior Shareholders’ Agreement to align with the Token Shareholders’ Agreement

Advice on the Registration Agreement and Token Shareholders’ Agreement 

Financial market regulation: 

Advice on marketing strategy and restrictions in Switzerland 

Review of marketing documentation and disclaimers

Taxes:

Advice on tax structuring and consequences

Obtaining a tax ruling for potential share sale profit 

+ LEXR Certified Tokens’ badge for your website, certifying that your Share Tokens are in line with the state-of-the-art! 

Timeline: Appx. 3-5 weeks
Flat Fee: CHF 1’600 (excl. VAT, notary and commercial register fees, as well as excl. fees related to technical implementation & related advice)

Out of scope:

Communication with shareholders/investors (e.g., info events or participation in general assembly)

Drafting of Swiss prospectus (only required above CHF 8m public sale per annum)

In case of public sale in other jurisdictions, research on non-Swiss prospectus requirements and execution of relevant (legal) operations outside of Switzerland

Drafting of investment agreements for private sale 

KYC / AML advice

Technical Implementation & Advice (provided by trusted IT partner  Aktionariat AG  for a technical setup fee of CHF 3’400 only)

 

Book a free call

Other Options

Want to incorporate your new company in Switzerland with tokenized shares from the very beginning? 

It is now possible within our  LEXR Incorporation Package (incl. the ‘LEXR Certified Tokens’ badge for your website). 

Starting from CHF 500 for the legal operations (excl. VAT, notary, and commercial register as well as technical implementation fees). 

Add-ons such as incorporation with crypto & Shareholders’ Agreement for co-founders are also available!  

 Timeline: Appx. 3-5 weeks

Want to set up an employee participation plan, but with tokenized shares? 

You can now issue the full share compensation package to your employees from day one with a clawback enforced through a smart contract.  

Starting from CHF 2’800 for the legal operations (excl. VAT, notary, and commercial register as well as technical implementation fees). 

Timeline: Appx. 3-5 weeks

Why choose us?

1

No platform dependency: Your shares are freely tradeable on the Ethereum-blockchain without any intermediaries.

2

Experience: Work with blockchain experts that have done it before.

3

All-in-one solution: No prior technical or legal know-how required.

4

Price certainty and low cost: Flat-fee solution with highly efficient digitized legal processes.

5

Speed: Fast execution and close collaboration between tech and legal.

Share Tokenization frequently asked questions

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