Finom Pioneers Cryptocurrency Stock Capital Increase
Largest ever increase in stock capital via cryptocurrency and first in Switzerland’s Appenzell-Ausserrhoden canton
The financial blockchain company Finom AG has become the first in the world to form its stock capital with an unprecedented 7,760 Ether (ETH), the second most popular cryptocurrency, that was equal to 2,4 million Swiss Francs (СHF) at the moment of incorporation. Finom’s capital stock can be verified by accessing Finom’s profile on the Swiss commercial register. This marks the first time a cryptocurrency has been pledged as authorised capital of a business in Switzerland’s Appenzell-Ausserrhoden canton.
Stock capital refers to the money or property contributed by stockholders to found a business, and guarantees the insured minimum required for settling accounts with suppliers.
Finom officially booked the Ethereum wallet with 7,760 ETH as a non-material asset of the company, thereby increasing authorised share capital from 0.1 to 2.5 million CHF. This is seven times higher than the stock capital of JSC LukOil and 1.6 times higher than that of X5 Retail Group.
“At Finom, we are interested in bringing blockchain to the masses and legitimizing cryptocurrency as a form of stock capital in an innovative manner,” says Denis Suslov, Chief Financial Officer at Finom. "This alternative method is fully compliant with current tax legislation. An independent auditor registers the value of the assets in the wallet under company’s control in fiat equivalent according to the current exchange rate. Thus, cryptocurrency can be contributed to share capital as an alternative asset.”