Blackmoon Crypto, a fintech blockchain based company that raised $30 million during its ICO in September, has announced its agreement with global law firm, Allen & Overy LLP. The agreement will help establish the legal infrastructure that will serve as the backbone for Blackmoon’s crypto and traditional funds.
The platform is intended to act as a one-stop solution for asset managers by allowing them to legally create and manage investment funds. These funds gain benefits of both crypto and fiat investments: the crypto space provides transparency and enhanced liquidity, whilst the fiat side offers diversification and access to the multi-trillion traditional assets market. Allen & Overy LLP will provide the Blackmoon team with expertise regarding the integration of the crypto-sphere and the financial world.
The company hopes to establish trust in the FinTech blockchain industry by using the Ethereum blockchain to establish a contractual relationship between different parties based on democratization, decentralization and trust.
Allen&Overy’s partnership will allow for a tokenized investment fund to comply to an existing securities’ regulations and will help minimize counterparty risks. The law firm will work on multiple aspects such as fund incorporation and structure, will reduce the settlement times and improve the constructual term performance that the technology offers.
Blackmoon aspires to create a new and obtainable ledger for investors in order to negate the problems associated with traditional funds. In the Blackmoon economy, investment managers would be able to run a crypto fund without having to go through the hassle of creating a legal infrastructure, effectively eliminating the barriers for a crypto fund creation. Crypto funds are more cost-efficient than the traditional way of investment, due to low infrastructure and setup costs.
So far, $30 million has been raised after holding a successful ICO for its issued token, the BMC. BMC holders who enrol as continuous contributors will receive revenue stream from the first fund created on the Blackmoon Crypto platform. Blackmoon will establish different funds in collaboration with external asset managers to expose investors to both the broader crypto market and traditional funding.
Oleg Seydak, CEO of Blackmoon Financial Group, explained: “Setting up the proper investment structure is a difficult and costly endeavour. Not all tokenized funds set up a proper structure, which leads to greater regulatory risk for investors. Now is the time to introduce the industry standard for setting up tokenized investment vehicles that can attract investments from private individuals and institutional investors of any kind. That’s what the Blackmoon Crypto platform does; it pays attention to regulatory risk and bridges the gap between the fiat and crypto worlds.”