"E-Prime for IR" helps issuing companies to strengthen investor engagement
BOOSTRY has begun offering "E-Prime for IR", a service that enables issuers who raise funds using security tokens to proactively refer to and use investor information and other information necessary for marketing.
The domestic public offering of Security Tokens (ST) has reached a cumulative issuance amount of 168.2 billion yen by fiscal year 2024, and the ST market continues to develop steadily.
As the market develops, there is a growing need in the industry to leverage the blockchain feature where stakeholders reference the same data, allowing issuing companies to obtain investor information in real-time and connect it to finance-based marketing activities.
However, despite the growing demand, several challenges existed: issuing companies needed sales companies to obtain consent from investors, and even with consent there was no means for issuing companies to view investor information, and beyond basic information linked to ST balances (name, address, email, date of birth, etc.), each issuing company had unique information they wanted to collect (such as point IDs linked to the point services provided by the issuing company).
To solve these challenges, BOOSTRY has launched the "E-Prime for IR" service to further accelerate finance-based marketing needs that enable simultaneous fundraising and investor engagement.
Introduction to E-Prime for IR
E-Prime for IR is a service that allows issuing companies to view investor information of STs in real-time. The investor information that can be viewed is not limited to basic information such as name, address, date of birth, email address, and holdings, but can also include additional information such as point IDs for unique point services provided by the issuing company. The collected point IDs, etc., are expected to be used by the issuing company when providing unique points as benefits to investors.
The general usage pattern envisioned is as follows:
- The sales company partially utilizes E-Wallet to email a questionnaire to investors to obtain third-party provision consent for the issuing company
- Investors respond to the questionnaire. When answering the questionnaire, they also provide additional information such as point IDs for unique point services provided by the issuing company
- Through the questionnaire responses, the issuing company can view investor information via E-Prime for IR for investors who have consented to third-party provision of investor information to the issuing company
Through this flow, the issuing company can view investor information from E-Prime for IR.
How to utilize E-Prime for IR
Application to payment-in-kind schemes
First, BOOSTRY anticipates E-Prime for IR to be used for payment-in-kind schemes for interest, dividends, and redemption payments.
In a past self-solicitation case BOOSTRY was involved with, there was an example where interest payments were made with points. In this case, BOOSTRY's ibet app was used for payment-in-kind, but generally, it is expected that issuing companies will need to provide their own electronic money to investors. BOOSTRY anticipates that the issuing company will use the unique service IDs collected from each investor through E-Prime for IR when providing their own electronic money.
Note that for payment-in-kind, caution is needed as securities companies have various considerations such as withholding tax methods and investor documentation.
Application to campaigns
Second, BOOSTRY anticipates it being used for campaigns aimed at strengthening communication with investors.
Although it is an example of a transfer bond that BOOSTRY was not involved with, the issuing company needed to collect customer numbers for their online shop from investors to provide campaign benefits. BOOSTRY believes E-Prime for IR could be utilized in such cases.
In summary, E-Prime for IR can be utilized when providing non-monetary rewards, and BOOSTRY believes it will be a useful service when considering the future characteristics of STs.
