Use Case

Certificate of Things.

Finance the purchase of an asset with a certificate that pays investors from what the asset produces. A direct investment in output, issued as a Swiss security.

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A small steel wrapping machine with a row of foil-wrapped chocolate bars, in a glass display cube in a factory hall with windows onto snow-covered mountains

The problem

An entrepreneur who wants to finance the purchase of new production equipment is usually also looking for an attractive financing option, one that avoids the costs and other disadvantages of taking out a loan.

The solution

GenTwo custom designs an investment certificate that compensates investors from the output of the asset being financed.

Take a chocolate manufacturer whose owners want to acquire a new packaging machine for CHF 3 million. Instead of a conventional solution requiring the company to take on debt, the certificate compensates investors through a variable coupon for each unit of chocolate packaged by the new machine. The transaction runs through a customized issuance solution that is quick and inexpensive to set up, and the certificate is issued as a fully-fledged Swiss security with its own Swiss ISIN, accessible to investors through their bank like any other security.

This means the manufacturer becomes more than a loan applicant. It is providing a service, giving investors a stake in the machine's output. The certificate corresponds to a direct investment in its chocolate production.

We call this a Certificate of Things. Like the Internet of Things, which makes use of information generated by physical devices, the solution turns information, in this case the manufacturer's capacity utilization, into an investment.