Companies raising capital through traditional methods encounter problems such as the manual share subscription & private placement, slow execution process and maintaining paper stock certificates and cumbersome shareholder registers. Through tokenization, companies can manage their investors and responsibilities from a digital ledger to track the ownership, reach a new breed of investor, including retail investors who may not have had access to traditional equity offerings.
However, it’s worth noting that tokenized securities are subject to the same regulatory requirements as traditional securities, and companies will still need to comply with applicable securities laws and regulations.
How It Works
Tokenization is the process of representing your shares on a digital infrastructure.
Choose your jurisdictions of issuance and distribution. Structure your security with empaneled legal advisors/Law Firms.
Onboard investors with a GDPR compliant digital identity verification. Allocate security tokens to approved investors.
Manage your operations on the blockchain; token supply, eligible investors, servicing and corporate actions
Benefits of tokenizing private equity
Increased liquidity
Tokenizing private equity can make it easier for investors to buy and sell their holdings, potentially increasing liquidity in the market.
Fractional ownership
Tokenization can enable investors to own fractions of an asset, which can make private equity investing more accessible to a broader range of investors.
Greater transparency
Tokenization can provide greater transparency into the ownership and transfer of private equity holdings, making it easier for investors to track their investments.
Automation
Tokenization can automate many of the processes involved in private equity investing, such as dividend payments and regulatory compliance, reducing the need for manual intervention and improving efficiency.
Faster settlement times
Tokenization can enable faster settlement times for
private equity transactions, reducing counterparty risk
and improving the overall efficiency of the market.
Overall, tokenizing private equity can offer several benefits to both investors and issuers, potentially making private equity investing more accessible, transparent, and efficient.
