Malta-based blockchain company Palladium launched on Tuesday the world’s first Initial Convertible Coin Offering (ICCO) in partnership with US-based cryptocurrency exchange Bittrex and eSports betting platform Unikrn.
According to a press release, the ICCO will involve a sale of a “tokenized convertible warrant” that will allow users to convert the token into shares of the company three years after issuance — a feature that differs the offering from a traditional Initial Coin Offering (ICO). The pre-sale of Palladium tokens has already started, while subscription of the tokenized securities will run from July 25 to September 30.
The fundraising target is €150 million, Palladium further revealed. Some 50% of the proceeds will be used for a planned acquisition of a controlling interest in an unspecified European bank. Around 35% of the accumulated funds will be used for the development of a new cryptocurrency exchange, which will operate under the regulation of Malta Financial Services Authority. The remainder 15% will go towards “strategic investments in financial services and blockchain companies complementing Palladium’s business.”
“We expect this project, which will create more than 100 job opportunities, to be a historic landmark and to bridge the gap between traditional financial services and cryptocurrencies,” Palladium founder and chairman Paolo Catalfamo commented.
“Palladium has found a way to solve some of cryptocurrency's biggest drawbacks with a single solution within existing regulations.”, Rahul Sood, founder of Unikrn, a shareholder in Palladium, said.
The ICCO launch was made in the presence of Malta’s Prime Minister Joseph Muscat at the Malta Stock Exchange just a few days following the parliament's final approval of three cryptocurrency and blockchain-related bills. The industry-friendly legislation brought legal certainty and integrity to the growing virtual currency market in the archipelago.
Living up to its nickname, the “Blockchain Island” has already attracted several large cryptocurrency exchanges, including two of the biggest platforms by trading volume Binance and OKEx.
One more exchange for Bittrex
“We’re committed to advancing blockchain technology and identifying projects that highlight its potential benefits,” said Bittrex CEO Bill Shihara, as quoted in Palladium’s press release. “Our partnership will launch a new trading platform powered by Bittrex technology, and its customers will have access to the large selection of innovative utility tokens listed on Bittrex, which we chose using our industry-leading token review process. We’re excited that this project will help further increase adoption of blockchain technology and continue to expand our business globally.”
Bittrex’s participation in Palladium’s project emerges less than a week after the US-based crypto exchange announced it will launch another virtual currency trading platform for EU citizens in co-operation with UK-based fintech firm invest.com.
Notably, Bittrex CEO and invest.com announced another partnership back in February – a crypto exchange aimed at the retail market called Zodiac. The platform has not been launched yet and the two companies have not provided an update on its development.