SOMA Finance to Issue the First Retail Compliant Digital Security

SOMA Finance, a joint venture between MANTRA and Tritaurian Capital, is planning to offer the first legally issued and compliantly structured digital security to global and U.S. retail investors later this month, the company said in a statement Wednesday.

The company plans to sell up to $5 million in tokens in one or more tranches, with the first tranche priced at $2.50 per token. The token also gives holders benefits, including the right to a dividend of up to 10% of SOMA’s profits. It plans to issue the SOMA token at the end of this month, or by early October.

The SOMA token is also the first regulation crowdfunding (Reg CF) issuance on the SOMA.finance platform, the firm said. SOMA.finance is a multiasset decentralized exchange (DEX) and issuance platform for tokenized equities, digital assets and non-fungible-tokens (NFTs).

A criticism often leveled at the cryptocurrency industry is that crypto tokens don’t represent a financial claim on the equity or debt of the issuer. In the event of bankruptcy or fraud, investors are often left holding tokens that are worthless with little or no recourse to get their money back.

What's unique about the SOMA token is that it will actually represent a financial interest in SOMA at a corporate level, as the token will be a non-cumulative, participating preferred stock of SOMA.finance, the company said.

“We have been working quietly but diligently to develop the necessary technology to launch a revolutionary decentralized marketplace for digital assets, compliant digital securities, and NFTs while liaising with regulators to provide a highly regulated decentralized financial platform,” said William B. Heyn, co-founder and co-CEO, SOMA.finance and CEO of Tritaurian Capital."

Tritaurian Capital is a registered broker-dealer and member of the Financial Industry Reporting Authority (FINRA) and the Securities Investor Protection Corporation (SIPC). It is the first non-alternative trading system (ATS) broker-dealer to be approved for a license to sell digital private placement securities using blockchain technology.

UPDATE (Sept. 6, 08:47 UTC): Adds token's claim on corporate assets in fifth paragraph; removes duplicated paragraph.