According to a recent announcement, Vertalo has partnered with Issuance to improve both compliance and cap table management in the security token industry. The strategic partnership will include both initial issuance as well as secondary market trading.
The Vertalo and Issuance Partnership Explained
Issuance and Vertalo have partnered to bring added compliance, investor communications, and cap tables to the security token industry.
Issuance is considered a ‘deal marketing platform’, which connects digital securities issuers to potential investors. Vertalo specializes in compliance, communications, and cap table management for digital securities. Through the partnership, both organizations expect to see an increased deal flow, after their partnered services will feature added compliance and cap table technology.
The latter half of 2018 has seen the real-world implementation of digital securities, which are also referred to as security tokens. Equity, real-estate, fine art, and investment funds have all experienced the benefits of tokenization— which are further explained in our comprehensive security token guide. Even professional sports teams have expressed interest in the tokenization of ownership.
How Vertalo and Issuance will Strengthen the Security Token Industry
Despite the significant growth, compliance and cap tables remain a concern for many. And those are exactly what the new partnership aims to improve. As stated by Darren Marble, CEO of Issuance:
“Digital securities issuers and investors are demanding better tools and transparency for their issuances, investor relations, and cap tables. We’ve passed the point where issuers can throw up a dashboard for investors and manage their offerings via spreadsheets. Our partnership with Vertalo will give our clients the compliance, communications, and cap table tools that tie together initial investment with secondary trading. As the leading provider of strategic advisory and marketing solutions to issuers of digital securities, both our clients and investor network look to us to provide greater clarity in the offerings we market, and Vertalo helps us achieve that.”
Vertalo provides users with a white-labeled Software as a Service (Saas) solution for issuer compliance and cap tables. The service works with most major issuance platforms, Alternative Trading Systems (ATS), and KYC/AML services. They also help both broker-dealers and issuers throughout both initial issuance and secondary market trading by place securities ownership and investor eligibility on-chain. The benefit here is a notable reduction in time when it comes to both the initial purchase and secondary trading of digital securities.
Dave Hendricks, CEO of Vertalo, provided the following comments on the partnership:
“Vertalo is not an ‘end-to-end’ solution; rather we complement service providers in the digital securities community, enabling them to do what they do best — whether that is issue tokens, raise or custody funds, or manage secondary trading of tokens. By connecting with service providers, and placing proof of ownership and trade eligibility in the wallets of investors, Vertalo delivers on the promise of decentralization for issuers and investors in digital securities, while enabling compliance with securities laws and disclosure requirements.”
What do you think of the partnership between Issuance and Vertalo? Will an added focus on transparent compliance and cap table technology help to secure a bright future for the tokenization of the capital markets industry? Let us know what you think in the comments below.
Image courtesy of Vertalo and Issuance.