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What is a token financing?

The answer

A token financing is a capital raise in which the instrument sold is a token or token-linked right rather than conventional equity. Run to institutional standard it involves designed token economics, offering documentation that survives securities counsel, validated valuation, and professional placement — a securities transaction in everything but the wrapper.

The instrument differs from equity in where its value lives: a designed economy of supply, incentives, and governance rather than a shareholders' agreement. That makes the design discipline — token economics — the heart of the transaction, and the reason the same firm should design and place the instrument.

GDA has structured token financings since 2016, including for regulated financial institutions; the MultiBank Group mandate, an eight-figure raise for a regulated brokerage's native instrument, is documented on this site.

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Token financing advisory — the guideToken economics designMultiBank Group — case studyAll answers

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