Foire aux questions
Who is the founder of YTY?
The founder of YTY is Olivier Cordoleani, CEO. For more information, please visit”Contact“
Which blockchain do you use to issue tokens?
All EVM blockchains can be used to issue tokens on our platform.
Ethereum is the best known, but we can issue tokens on several dozen blockchain networks (e.g. Binance Smart Chain, Wanchain, Skale, Rootstock, Ava/Athereum, Oasis Network) for reasons of scalability or transaction fees. Non-EVM protocols can be added on demand and according to market needs.
Can I transfer my token to another platform?
Absolutely, your token is transferable to any platform sharing the same token standard.
What is the difference between the ERC-20 and the ERC-1400?
- ERCs (Ethereum Request for Comments) are the standards for deploying smart contracts. They each offer different possibilities.
- The ERC-20 is suitable for modelling assets whose governance is simple in terms of transferability.
- The ERC-1400 used by YTY Assets allows to model assets with complex transferability rules. For example, an equity token is governed by a shareholder agreement, company articles of association, local and/or international government regulations. These rules are complex, versatile and some are confidential. The ERC-1400 is ideal for dealing with such constraints.
What is a token?
A token is the digital representation, on a shared register (e.g. blockchain), of the ownership of an asset.
The qualification of the nature of the asset is left to the market authorities.
What is tokenisation?
Tokenisation consists of digitising the ownership of assets in the form of tokens. In this context, the blockchain / DLT serves as an unforgeable register to store these tokens.
Tokenisation goes much further than the simple digitalisation of property rights, it allows :
- Peer-to-peer transferability, via the Internet, without the intervention of a financial intermediary (e.g. account holder)
- An opening to the global market
- The availability of liquidity on currently illiquid assets (real estate, art)
- Lower costs by eliminating intermediaries
- Fractionalization of assets, i.e. the possibility to acquire a fraction of a token
- High transparency through reliable (non-repudiable) and real-time auditing
- The programmability of assets, thanks to smart contracts.
What are the benefits of tokenisation?
This depends on the profile of the users, who may be issuers of financial securities, financial intermediaries or investors. Today, when one buys shares from a bank broker, the securities are stored in their database, in a “siloed” system, with the indispensable financial infrastructure of settlement. With blockchain, securities exist as tokens and are transferable from one platform to another. This is the purpose of tokenisation. It gives the investor total sovereignty over his assets. He can delegate the custody of the latter to a third party, but he is also able to keep them himself or to sell them directly (transferability which implies the existence of liquidity and improves the risk ratio), without going through a broker or an organised market, in other words, without intermediaries. The investor can also partially sell a share (principle of asset fragmentation), which is impossible if one goes through the traditional mechanisms. The tokenisation of assets will undoubtedly make it possible, for example, to stimulate investment in unlisted securities.
What is a blockchain?
A distributed (or shared) registry is a registry that is simultaneously stored and synchronised on a computer network, and evolves by adding new information that has been validated by the entire network and is never to be changed or deleted.
A distributed registry has no central administrator and no centralized data storage.
One form of distributed ledger is the blockchain, which can be public or private.
But not all distributed ledger systems rely on a blockchain to successfully execute a distributed consensus: the blockchain is just one type of data structure that can be used in a distributed ledger.
The term “blockchain” only applies to linear transaction registries (e.g. Ethereum, Bitcoin, Tezos, Cosmos, Substrate) and not to systems based on acyclic graphs (e.g. Tangle, Hashgraph), nor to key-value systems coupled to a Merkle tree (e.g. MS CCF).
What is a smart contract?
A smart contract is a program executed by all validators in a network. Its execution is deterministic and is subject to a consensus between the validators before they can modify the state of the blockchain. The smart contract allows for high reliability in execution, total or selective transparency and traceability of its execution. The best known smart contracts are those based on the ERC models proposed by Ethereum. However, this technology is possible on many other blockchains.
How mature is the market for the tokenisation of financial assets?
Clearly, although the tokenisation of assets is working very well today and bringing real benefits, we are only at the beginning. The market, enabled by blockchain technology, is far from mature both from a technological and a regulatory point of view. On this second point, however, France is not too badly placed, as are Luxembourg, Switzerland and Germany. From a market point of view, some banks are interested and are starting to launch their solutions, as are some start-ups, but there are still few of them in Europe.
What about the issuer of financial securities?
One of the advantages is the speed with which it can issue tokens, at controlled costs, i.e. ten to one hundred times less than a stock market listing. Our platform not only allows tokenisation, but also, upstream, the creation of public or private token offerings with all the processes required for such operations: calls for investors, compliance with the various regulations (MiFID II, AMLD5, RG AMF), contracts and pacts, all of which are carried out in an automated manner, thanks to workflows combining regtech and fintech. As a result, transfer and settlement times are reduced to a few minutes compared to two to three days (or even 10 days in some cases) on traditional markets.
What about the law?
1 – The financial arrangement to tokenize a building
In almost every jurisdiction, there is no law (yet) granting that a token may represent partial ownership of a real estate asset. On the other hand, more and more jurisdictions make official that a token may represent partial ownership of a company. Tokenizing real estate is then done not by mean of tokenizing the property shares, but by tokenizing shares of a company that owns the property.
Nota: This company is typically a specially created investment vehicle (SPV) or trust that owns all or part of the asset. Tokenizing the company’s shares then amounts to tokenizing ownership of the asset.
In France, joint stock companies can record their shares’ movements onto a blockchain to simplify record-keeping through a “shared electronic record system” (DEEP). Such legal recognition appears in more and more countries.
Hence, transferring ‘real estate tokens’ means transferring company shares, and this can be done 100% legally without third parties getting involved (notary, lawyers). And this simplifies the transfer process: had it instead been possible to tokenize the real estate physical asset itself, each transaction would have required the extra burden of a notary act.
2 – France and Europe
Real estate financing via the issuance of token does not fall under the law of participatory financing. Specific regulations must be applied, which vary according to the nature of the offer and the qualification of the token.
ICO – Initial Coin Offering
YTY ASSETS for your fundraising
A new method of financing
Create a utility token that serves your community and your project.
- An ICO is a method of fundraising, operating through the issuance of digital assets, called tokens, exchangeable for FIAT currency or other digital assets.
- These tokens give access to the products/services of the project that issues them. ICO is a non-dilutive form of financing for companies.
The main pain points of ICOs
- Management of unconventional uses : in practice, the behaviour of investors in ICOs is very different from that of traditional investments. The issuer must adapt to this to ensure productivity, efficiency, investor satisfaction and a good public image.
- KYC / AML process: depending on the jurisdiction, KYC / AML requirements are more or less complex (different documents, live selfie above certain amounts invested…).
- Payment scenarios and automatic reconciliation : provide all the desired payment means to pay in fiat or crypto, then automate the reconciliation with subscriptions and considerably simplify, with a huge productivity gain, the processing of non-exact cash receipts.
STO – Security Token Offering
YTY ASSETS for your financial securities
Traditional investing. Only better.
equity, bonds, real estate, fund units
You want the investment to be :
RTO – Royalty Token Offering
YTY Assets for your royalties
Revenue Based Financing 2.0
A new alternative financing model. Tokenised for liquidity.
Le Revenue based financing (RBF) raises capital in exchange for a percentage of revenue over a given period until it is repaid N times – or longer until recovery.
No dilution – No debt – Low risk
RBF is particularly interesting if revenue visibility is good: scenarios with regular revenues (SaaS, rentals…), business plans validated by due diligence and/or scoring….
The main pain points of Revenue Based Financing
- Liquidity: the lack of a secondary market makes it very difficult for an investor to resell their investment.
- Automation: end-to-end automated processes increase productivity while reducing costs and error rates.
RTO = Crowdfunded RBF
- investors contribute funds to the company
- investors receive royalty fees (tokens)
- customers pay the company for services
- X% pays investors in proportion to their tokens
- investors can trade their royalties
For each investor, royalties are governed by a formal contract, which ends when one of three scenarios occurs:
1 – The royalty cap is reached
2 – The commitment period is over and the investor has recovered at least the amount financed
3 – The commitment period is extended beyond its initial duration until the investor has recovered the amount financed