Ceres Coin to Issue Tokenized Shares and Stablecoins
Chicago-based cannabis company Ceres Coin has filed an application with the U.S. Securities and Exchange Commission (SEC) seeking approval to launch public trading of tokenized securities and stablecoins.
Ceres Coin Aims to Raise $50 Million
The company plans to issue tokenized shares, called Tokens, totaling $30 million. The securities will be sold at $1 each, with a minimum purchase of $5,000. Token holders will receive 80% of the profits from the Ceres Coin lending platform and 20% of the profits from the blockchain platform.
Ceres Coin also intends to sell stablecoins, called Coins, worth $20 million. The value of these coins will be pegged to the U.S. dollar at 10 cents per coin. Coins will function as utility tokens and serve as a payment method within the Ceres Coin blockchain. Cryptocurrency holders will be able to sell their coins back to the issuer. Before purchasing tokens or coins, investors will be required to complete verification, open a crypto wallet, and send funds to a smart contract address.
Ceres Coin to Launch Blockchain for the Cannabis Industry
The company has developed a private decentralized network and payment platform for businesses. Legal cannabis companies and their clients, government agencies, transportation companies, legal and auditing firms will be able to join the platform. Users will have the option to create one of two types of wallets:
- Purchaser Coin Wallet (for buyers)
- SP Coin Wallet (for service providers and sellers)
Clients of registered companies will purchase Coins from Ceres Coin and use them to pay for goods and services. The transaction processing fee will be 0.5%. The blockchain will store information about:
- Products sold
- Deal participants
- Tax collections
- Product transportation
The decentralized network will be based on the Hyperledger Fabric protocol, which supports smart contracts. Thanks to its modular structure, Hyperledger Fabric allows for simultaneous confirmation of multiple aspects of a money transfer (such as legal and financial). The decentralized network will be maintained by several nodes operated by major investors.
Ceres Coin to Open Lending Platform for the Cannabis Industry
Ceres Coin will launch a lending platform for cannabis industry participants. Company executives note that many American cannabis producers cannot access banking services, so loans from Ceres Coin are expected to be in high demand. The company will begin issuing loans in all U.S. states for the purchase of commercial real estate. This area of lending is considered highly promising, as the rapid growth of the cannabis market is increasing the number of retail outlets, processing plants, and farms. For example, the number of cannabis stores in Colorado has nearly doubled the number of McDonald’s restaurants (392 vs. 208).