Brokerbot
Aktionariat offers a set of tools for Swiss companies to create a market for their digital shares on their own website.
How our market works
A meaningful trading venue provides a share with sufficient liquidity. Unfortunately, even shares listed on central trading venues are sometimes affected by illiquidity, especially if they are not traded frequently enough (e.g. SIX listed titles are not necessarily liquid).
Following the successful model of Uniswap, we enable companies to provide a liquidity pool themselves.
Thanks to this fully decentralized approach, we achieve high liquidity, full market control and maximum decentralization in line with the blockchain philosophy.
Our automated trading machine called Brokerbot.
Make your shares tradable by integrating our Brokerbot into your website on a separate investors page. This gives investors easy access to your company's shares. Investments can be placed without unnecessary hurdles via bank transfer or directly with crypto.
Allow investors to sell shares back to the company to take advantage of liquid shares.
Why?
Traditional market makers are expensive and mean an additional intermediary between the issuer of shares and investors. Smart contracts on the blockchain can handle trading much more efficiently. Therefore our approach enables not only the sale of shares but, when desired, also a secondary market in an unprecedented form.
The issuer thereby always retains full control over its own stock market.
The Aktionariat Brokerbot® is the most efficient market maker available.
Fundamentals of Brokerbot
Background
Today, only 230 out of more than 500′000 Swiss companies are publicly traded on the stock market. We believe many more could and should be traded – thanks to our Brokerbot.
We have the legal, technical, and economic ideas to create liquid markets for thousands of additional Swiss companies, potentially unlocking billions in dormant economic value.
Strong Legal Foundations
Since February 1st, 2021, Swiss DLT (Distributed Ledger Technology) Law enables the introduction of ledger-based securities that are represented on a blockchain.
Aktionariat AG has been at the forefront of the new frontiers offered by this fresh legal framework since day one: we’ve been selling our own shares using Brokerbot immediately after the new legislation took effect.
Economics Rationale
Assets are more valuable when they are liquid. Our Brokerbot not only makes your shares tradable, but also ensures the necessary liquidity in trading.
Thanks to a liquidity pool provided by the company, it achieves a high degree of liquidity while maintaining control over its own stock market. The most rational approach to making SME shares tradable.
Innovative Technologies
Smart Contracts on distributed networks (Blockchain Technology) make it possible to create digital representations of physical objects and the peer-to-peer exchange of them.
Brokerbot runs based on an innovative smart contract (our Market Contract), on the Ethereum blockchain, with each Brokerbot installation bound to a specific Ethereum Address. Delivered as a web-based widget, Brokerbot makes the automated market-making of tokenized equity possible on any website.
Discover companies using our toolkit.
Key Features
Transparent Technical Basis
Both the source code and the actual contract a given Brokerbot is running on are all open source, freely and openly accessible, on the blockchain, safe from alterations. The Brokerbot that you see on this page and our Investor Relations page, for instance, is on 0xbddE...bB84.
A Bonding Curve – Under Your Control
The smart contract establishes a linear relationship between the (net) number of shares sold and the current price. The price mechanism of the Brokerbot operates on simple parameters which the operating company can easily configure in our Corporate Dashboard. In concrete terms, this means that the issuer can define by how many francs/rappen the share price moves for each purchase/sale of shares.
Liquidity Premium
Investors are likely to pay a higher price per share when there is a reliable market price and an option to liquidate their positions. Damodaran (2005) empirically estimates this effect to be at least 25%, even more for smaller firms.
Reduced Price Uncertainty
Founders, employees and investors benefit as their tokenized shares gain a tangible and predictable value.
More Potential Investors
Less uncertainty allows to create appeal to new types of less adventurous investors. Smaller ticket sizes lower the entry level for smaller investors. Ease of use allows anyone to purchase shares, even if not familiar with stock exchanges. Since our tools work on the Ethereum Blockchain, issuers automatically get access to 50 million Ethereum users; all potential investors.
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