Through a new partnership with fintech merchant bank DealBox and software provider Vertalo, over 20 companies expect to tokenize securities on the Tezos blockchain, representing some $200 million in dealings.
The partnership, announced Monday, will see Vertalo tokenize 22 different securities issued by DealBox customers, provide data management services and provide liquidity, said Vertalo CEO and co-founder Dave Hendricks. His firm is also a transfer agent registered with the Securities and Exchange Commission (SEC).
Hendricks said his company is essentially a provider of technology for this partnership, while DealBox is the actual intermediary between the customers and the tech firm. This is preferable, he said, because the company prefers to work with “channel partners” while Vertalo can work directly with issuers.
Number of Customers Doubles
The move more than doubles the number of customers Vertalo uses to deliver digital security. As of January 2020 the firm had 18 customers.
“The private assets are a bigger market than public securities. Because of the antiquated methods for asset management, and for ownership of private assets, owners of private assets cannot obtain liquidity,” Hendricks said, adding that tokenizing might be able to boost liquidity.
The move comes a month and a half after Vertalo formally picked Tezos network as their default securities issuing blockchain. The company supports securities issued on Tezos and Ethereum but said it would encourage customers to switch to the former as far as possible in January.
John Nance, the president and chief investment officer of DealBox, said that the partnership would help build digital investment market infrastructure.
“This idea of crowdfunding and using online investment platforms is pretty new,” Nance said, adding that more established firms may not have the plumbing necessary to support those types of securities issuance.
Previously, DealBox had seen two securities issued on the Stellar blockchain but hopes to potentially migrate to Tezos. “We’re going to be bringing a significant amount of capital to the Tezos platform,” Nance said.
According to Hendricks, the integration has already begun, and is expected to continue through the second quarter. DealBox previously saw two securities issued on the Stellar blockchain, but is hoping to potentially migrate to Tezos. “We’re going to be bringing a significant amount of capital to the Tezos platform,” Nance said.
Cryptolydian reported earlier that, Zabo announced it has raised $2.5 million in seed funding which was led by Moonshots Capital and joined by Blockchange Ventures, Castle Island Ventures, Digital Currency Group, CoinShares, Tezos Foundation, Capital Factory, among others.