World’s First ICCO – Initial Convertible Coin Offering – Launched in Malta

Avi Rosten

The crypto world has just added another initialism to its ever-increasing list with the announcement of the world’s first ICCO – Initial Convertible Coin Offering – launched today in Malta.

Created by Maltese blockchain company Palladium, the launch will involve a sale of a “tokenized convertible warrant” – that will allow users to convert the token it into shares of the company - three years after issuance.

With the platform regulated by the Malta Financial Services Authority, founder and chairman of Palladium Prof. Paolo Catalfamo explained that the new venture will offer a solution to:

“the biggest obstacles to widespread crypto adoption: cumbersome management of cryptocurrencies and regulatory uncertainty surrounding their use.”

Proceeds from the sale will according to local reports be allocated towards three functions:

  • 50 % will go towards the acquisition of a controlling interest in a European bank
  • 35 % to the formation of a regulated crypto exchange and the development of a clearing and settlement blockchain platform
  • 15 % into strategic investments in financial services and blockchain companies complementing Palladium’s business.

Praising the Maltese government for their world-leading position on blockchain technology, Catalfamo added that the new project will also create over 100 job opportunities and represents a “a historic landmark and to bridge the gap between traditional financial services and cryptocurrencies.”

With several leading figures from finance and tech sitting on board, including a former director of Credit Suisse, and two former SEC attorneys, it remains to be seen whether the company can translate the platform’s potential into investor enthusiasm.