Liechtenstein-based area2invest joins forces with Cashlink from Frankfurt. The goal of the strategic cooperation is for both businesses to expand their reach.
Area2invest is an investment platform powered by 21.finance, a Liechtenstein-based Fintech that links private, professional, and institutional investors with issuers of different asset classes, including tokenized assets. The idea is to enable investors to invest entirely digitally, compliant with regulations, and at low fees.
“We are sort of an online shop for financial products with a multi-asset and multi-issuer strategy,” explains Max Heinzle, CEO at 21.finance. Through the platform, private investors can get access to assets which they usually wouldn’t, according to Heinzle. “They can, for example, already invest in stocks and bonds during the private placement phase, the so-called pre-IPO-phase or pre-IBO-phase,” he says.
The platform has now teamed up with Frankfurt-based Cashlink, which has built a technological infrastructure that enables the issuance and management of digital securities for banks and investment platforms.
The partnership should expand both companies’ global reach
Through the cooperation, both businesses can leverage each other’s strengths. Area2invest can list digital securities that were issued via Cashlink’s infrastructure directly on its platform. Customers of both companies can thus gain access to a more extensive customer base.
“We are happy to cooperate with Cashlink providing us with its proven tokenization infrastructure and thus enabling us to expand our partner network and service offering for the area2invest community,” says Heinzle. “We’re also happy to support Cashlink customers expanding their placement reach while providing access to our broad investor community through the area2invest marketplace.”
These kinds of cooperations will become increasingly important as the blockchain industry matures. Individual businesses might have created cutting-edge technology but lack the sales platform to bring their products to market successfully. Some businesses might have solved a particular technological challenge but have to team up with others to create one-stop-solutions that add value to the customer. As the industry matures, more cooperation and consolidation will become commonplace.
Liechtenstein-based businesses need international partners
Liechtenstein-based businesses teaming up with a Germany-based business in the same industry is something that we have also seen more often in recent months. The German economy remains Europe’s powerhouse, and as Liechtenstein is a member of the European Economic Area (EEA), it makes perfect sense for Liechtenstein-based businesses to use the preferred market access to Germany.
Many fintech companies that came to Liechtenstein made the move for exactly that reason: Liechtenstein’s EEA-membership. Yes, the Blockchain Act and Liechtenstein’s fintech-friendly approach play a role as well, but the number one reason why businesses decide for Liechtenstein instead of Switzerland is its EEA membership. Cross-border partnerships like this can thus help to leverage this advantage and coordinate the market entry in Europe.