Interview with Pierre-Yves Dittlot — CEO of Ledgity
Which problem is Ledgity trying to solve?
Ledgity is working to improve our financial system and especially the trading ecosystem to make it more efficient. This technological leap will help startups and companies to easily finance their growth through Security Token Offerings. By liberating our financial system from cumbersome processes, we can create tremendous value for the economy. Companies and innovative startups can finally get an easy, efficient, compliant, and affordable process to raise funds.
Moreover, we believe that investors will be more willing to invest into unlisted assets if they can access liquidity on a trusted secondary market. Finally, people can access financial solutions regardless of their wealth. Ledgity is reshaping the way we own and trade assets
What is your biggest challenge launching your Security Token exchange?
The biggest challenge to launch a Security Token exchange is to merge regulations, cybersecurity, and adoption. To that matter, Ledgity is closely working alongside Swiss and French regulators to set up the best framework for digital securities. We also take care of security infrastructure and user experience.
What is an investors advantage to buy/sell securities via Ledgity compared to other exchanges?
By using Ledgity, investors will enjoy safety and quality investments with a pleasant user experience and easy to use interface directly from their smartphone. Moreover, Ledgity is based in Switzerland, which obliges us to comply with the highest standards regarding regulation. Indeed, for long-term growth, it is the way to build a trusted environment and to achieve wide adoption.
When will I be able to trade Security Tokens on your exchange and who will be eligible to buy and sell them?
We’re currently developing the demo of Ledgity mobile application which will be available to download on IOS testflight by the end of November. The release of the beta working solution is estimated for Q2 2019. Eligibility to buy and sell Security Tokens will depend on the regulation and your KYC/AML information.
What kind of Security Tokens / asset classes will I be able to trade on Ledgity?
Ledgity intends to primarily offer investment funds and private equity. As our ecosystem matures, we will broaden the asset classes available on our platform.
Will I be able to sell Security Tokens I bought via Ledgity on other exchanges?
We would love to create interoperability between exchanges but we would require high KYC/AML standards from the partners. So it will be case by case through partnerships between exchanges. We believe that the first Security Token exchanges that create an alliance in order to share the pool of liquidity will have a strong competitive advantage.
How does your Due Diligence process for Security Tokens that want to be listed on Ledgity look like?
To make our Due Diligence process efficient, we are creating a network of professionals in each field which will take care about the securities issued. Moreover, we will help companies that want to perform an STO.
Can you tell us a bit about the legal process it took you to launch an exchange for tokenized securities?
We cannot disclose our legal process for the moment because it is not finalized yet. We will apply to licenses in Switzerland and Europe. However we will be able to operate our exchange as soon as the tech is ready
Where do you see the Security Token Ecosystem in 5 years?
In 5 years, the Security Tokens ecosystem will be profoundly different than today. We believe that it will be integrated to our financial system with a lot of investment opportunities. It will offer to investors a new way to own and trade their assets without the need to rely on the current banking system.
We expect substantial public companies to choose the digital securities path to raise capital, in order to profit from the extraordinary features that Security Tokens could offer such as “the longer you hold the stock, the more votes you’d get”, along with worldwide interoperability between exchanges to own and transfer different types of securities. We believe that down the road, Security Tokens will become traditional securities that are chosen by default.
What are the biggest upcoming challenges for Ledgity?
The biggest upcoming challenges for Ledgity are adoption and regulations. Indeed, regulation is essential for mass adoption. This is why Ledgity will apply for several licenses in Europe, as we are already discussing with financial authorities in Europe and Switzerland (FINMA) to grow Ledgity in a compliant way. Concerning adoption, Ledgity will offer exclusive investments that investors do not have access to now, such as well-known and successful start-ups. Second, through organic growth generated via a referral program. And third, by offering an exciting UX/UI.
Thank you for the interview.