An Alternative Asset Making a Difference

An Alternative Asset Class making a difference

Innovation and technology are disrupting traditional institutions, affecting all areas of everyday life. Finance is undergoing a transformation with the evolution of new instruments that converge traditional assets with emerging technologies, effectively creating new asset classes. As a result, middlemen are circumvented, transaction costs are lowered and entry barriers are eliminated. In the not too distant future, we shall experience dynamic capital flows as a result of multi jurisdiction access and the democratisation of capital in what we call “the future of finance” 

The Finka Security Token pioneers the “future of finance,” by creating a financial instrument for an ancient industry - cattle ranching - taking advantage of new technologies and effectively representing a new asset class. This new asset class is available for the retail investor in any jurisdiction and provides a financing instrument to the industry the today has limited alternatives for growth.

What is the Finka Security Token?

The Finka Security Token is a revenue-sharing token supported by an underlying liquid asset and enabled by blockchain. This security is innovative and combines technology and the forward sale of future revenues in the traditional cattle industry operated by the Swiss company through its own subsidiaries. 

The Finka Token is the brainchild of the Finka Advisors, who focus on innovation, investment and impact. Finka Advisors bring the weight of a team rich in experience in multinational companies to productive projects looking to harness the power of blockchain technology for creative solutions. Based in Zug, Switzerland’s Crypto Valley, Finka builds bridges between Latin/South America and Europe connecting sustainable projects and startups with services, capital and world-wide networks. 

Instead of creating their own project or idea as an asset, they invested their own funds into a cattle ranch in Bolivia. The cattle ranch spans over 3 200 ha in the Bolivian Countryside and is home to over 4 000 cattle as well as the newest technology in managing cattle farms. The ranch has been operating for over 20 years and is cash positive. 

However, this article isn’t just about this specific token, but more about what it stands for and the potential it holds for society as a whole. What does it stand for? Converging a real asset with the future of finance, through the Blockchain. 

The Finka Token and the “Future of Finance”

Firstly, the Finka Security Token is demonstrative of the “Future of finance” as it converges a real asset with a financial instrument, without the need for an intermediary, for the very first time. The security token allows the common retail investor from any jurisdiction to access cattle ranching as an asset class. In the wider context, this means any asset (land, gold, property) can now be supported by an underlying financial instrument using blockchain, and can be invested in – in small, fractional amounts. 

The Finka Token promoting a “better society for all”

We believe the Finka Security token is a financial tool promoting a better society for all due to the potential it offers for increased liquidity in the developing world. For the first time, any investor from any jurisdiction can have easier access than before to investments in the developing world. The reason the access is easier is because due to blockchain, there are no third-parties or intermediaries. The huge cost of using traditional financial institutions to facilitate payments is cut out, and thus the possibility for such investments to exist is more attractive than ever! Secondly, investments can be fractional and very small, so this eliminates the traditional limitation of investors having to put down large amounts of money to be involved in investments. 

“Finance will be changed by Blockchain”

According to Carlos H. Fernandez Mazzi (Finka Token co-founder), “Finance will be changed by blockchain. Blockchain technology for real assets is the way to go for the next generation of financial instruments. We know the limitations that the developing world has for access to capital. Even if you have done everything correctly – you still have serious limitations in terms of access to capital. Blockchain Changes this. It provides access to the common investor to any asset anywhere in the world. You will be able to invest in any asset, anywhere in the world. The democratisation of capital due to blockchain will happen – not only for the rich, but for the common investor anywhere, in any jurisdiction.”