Austria’s GreenRock Energy is issuing a tokenized green bond to raise €25 million ($27m), with the funds to be invested in solar panel businesses and installations. It says the issuance of the tokens on the public Polygon blockchain is ‘approved’ by three regulators, Germany’s BaFin, Austria’s FMA and Italy’s CONSOB.
On the one hand, the issuance demonstrates the potential for small firms to tap the capital markets targeting consumers with low barriers to entry. There is a pressing need to empower SMEs to raise funds more easily. The lower issuance cost for the SME and the fractionalization enabled by tokenization make it more accessible for retail investors.
On the other hand, it illustrates the substantial risks to consumers without a clear risk rating.
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