AI Token to Confirm Verified Accredited Investor Status
The AI Token is an ERC-20 smart contract developed on the Ethereum blockchain, which will be offered by the North Capital’s broker-dealer affiliate, North Capital Private Securities Corp., to individuals and entities who have been verified as accredited investors. AI tokens will be issued with an automatic expiry date, to comply with the SEC’s safe harbor regarding the timeliness of third party verification. North Capital will be providing a free token verification tool to issuers to validate the authenticity of the AITs.
“Because AITs will be issued to a specific investor’s wallet and can be viewed directly in the Ethereum blockchain, rather than in a side-chain or off-chain system, issuers or token platforms can embed automated AI verification directly into their ERC-20 crypto securities,” said Dowd.
According to Anton Prakash, North Capital’s Chief Technology Officer, deploying accredited verification credentials via an Ethereum smart contract was a logical extension of the firm’s existing technology stack. “We have been focused on expanding the exempt securities business since 2011, and our API functions and related services have enabled over 30,000 transactions. The use of blockchain technology allows for an API-less integration, which will be useful for many of our existing customers and should open entirely new markets.”
Tokens will be available for free to accredited investors who register and verify their accredited status at the Accredited.AM website. Issuers and intermediaries also can take advantage of the AI Token infrastructure and visibility in the Ethereum blockchain to verify the accredited status of their customers.
