Creating new financing channels
As the world focuses more on the environment and climate change, and as people around the globe become ecologically more responsible, Vireo, a Singapore based Fintech startup has addressed this by bridging Blockchain and Fintech with ecologically friendly projects. Vireo has created a digital private exchange that will issue security tokens to enable the financing of all types of green projects producing green commodities such as renewable energy and clean water.
Investors can jump into projects whenever they want mitigating the risk. Some investors can invest during the construction phase, others once the project is up and running. These investors can then, easily exit and exchange financially green products, backed by green assets using the Blockchain.
The digitization of green assets would not have been possible if it were not for the Blockchain. The Blockchain ensures full transparency of the new financing channels, lowering the costs of operations, storing the documents and managing the smart contracts, enabling Vireo to issue security tokens that will reward investors with the same tokens.
The offering will attract not only digital investors using cryptocurrencies but also traditional investors using regulated financial instruments, while giving them the option to convert to digital assets if they choose to. This in and of itself allows Vireo to open new investment channels for green projects not possible before. This is especially useful in emerging and developing countries where financing is difficult.
The MENA region
Vireo’s Frederic Delaroche, Founder and CEO, Vireo states “We really want to focus on the MENA region, because it has both the financial means as well as the political willingness to counter climate change and offer alternative environmentally friendly energy production projects. This is especially the case of countries such as the UAE and Kingdom of Saudi Arabia.” He adds, “We are looking forward to developing partnerships in the region focusing on renewable energy projects and sustainable development solutions.”
Vireo’s Competitive Advantage
Today, Vireo is the only Blockchain startup investing in green financing solution. With its flexible and hybrid approach mixing both traditional and digital features, it is opening up new financing opportunities at any stage of the project. According to Delaroche, “Vireo project will generate more than 6% p.a. FIAT returns on average from duly vetted and verified green assets.”
Delaroche adds, “We aren’t just promoting the usage of renewable energy among citizens or allowing them to reduce electricity or even providing mass crowd funding we are actually creating new financial channels for environmental green projects on a global scale. We are on the edge of all new development in terms of risk mitigation for climate change, as we replicate the traditional financial markets and put them on the Blockchain.”
He continues “We have a full valuation model that is forecasting people’s expected returns, and we will do valuations every month, for each token we will issue, and that does not exist on the market.”
Establishing Trust
Vireo is very keen on establishing trust with its clients. As such Vireo is seeking to be fully regulated and requires a license to operate in any country. Delaroche warns that most of the scams within the cryptocurrency space emerge from the fact that the projects claim they are issuing utility tokens, while they are in fact security tokens with significant inherent risks, resulting in unregulated businesses.
More specifically, Vireo LLP is based in Singapore and is entitled under the Securities & Futures Act (SFA) exemption 272A, issued by the Monetary Authority of Singapore to the right to raise money up to S$5 million without issuing a prospectus. Vireo will be able to issue its security tokens to finance its 2 entities: Vireo Investment Management (Vireo IM), which will be responsible for Vireo Services from project selection, validation to risk management, and Vireo Asset Management (Vireo AM) that will manage all the financial transactions and products.
As Delaroche explained, “Vireo IM will most probably be open in Singapore as it is just an investment management entity. While Vireo AM, the regulated exchange which requires a license, will be based in Mauritius or Isle of Man. In these countries the creation of asset management company funds is legal and there are low taxation models.”
Investors will be required to pass the KYC (Know Your Customer) and AML (Anti-Money Laundering) process, done by an accredited sub party, to be able to buy Vireo tokens.
Running a Token Offering
The one-month long Vireo security token offering will start on April 26th whereby 70% of the issued Vireo tokens will be sold. All transactions will be pending until the soft cap of 1 million Singapore dollars is reached, ensuring the reimbursement of investors.
Efficiency is key for Vireo, as Delaroche assures that 3 months after the conclusion of the token offering, the platform can be fully operational, and the first project will be validated in that time period.
For further details on the token sale, kindly visit https://www.vireoseeds.com/vireo-tokensale/
