Vertalo & EarlyIQ Partner To Provide Continuous Eligibility And Liquidity In Security Token Trading For Investors and Issuers
Partnership Represents Massive Advancements In Digital Securities Trading And Investor Eligibility on the Blockchain
July 24, 2018 — Austin, TX — Vertalo, a stakeholder registry platform for compliant security token offerings and EarlyIQ, the leading provider of simple, secure online diligence and compliance solutions for private financial markets are excited to announce a formal integration partnership. The partnership will enable security token buyers and sellers to own their Accreditation, KYC (know your customer), and AML (anti-money laundering) results in order provide real-time accreditation and eligibility information and to facilitate mainstream adoption of security token investments and equity.
Interest and investment in Security Token infrastructure and and issuances has exceed $350 million over the last 18 months in the US and around the globe. According to Lou Kerner, Managing Partner of CryptoOracle, a leading security token-focused fund and advisory, “security tokens will revolutionize finance in many ways, including by bringing liquidity to privately held assets. So it’s important that buyers and sellers can prove ownership and eligibility to engage in real time trading on exchanges. Vertalo’s Registry platform is designed to reduce latency in the buying and selling of tokenized assets by management of perpetual KYC, investor verification and immutable asset ownership on the blockchain.”
Vertalo’s Co-founder and CEO Dave Hendricks is preparing to connect issuance platforms and exchanges through its partnership with EarlyIQ. “In order for buyers and sellers to take advantage of the killer app for security tokens — liquidity — it is critical that buyers and sellers can prove their eligibility to buy and sell their security token holdings without any administrative delays caused by inefficient offline eligibility checks. Vertalo’s integration and partnership with EarlyIQ will help issuers compress the time from an investor commitment to funding while reducing secondary sale and purchase latency by decentralizing the ownership of investor verification and KYC data from 3rd party platforms to the end users, who own and benefit most from the use of their data.”
On the Vertalo platform, individual eligibility results and status of accredited investors (SEC-defined)” are placed on the blockchain, where issuers and exchanges can access and instantly qualify buyers and sellers. Vertalo extends beyond secondary and exchange sales. Today, issuers incur cost and delayed / oversubscribed offerings while potential buyers await word that they have been approved to buy and issue. Issuers often have to raise 150% of their goal in order to compensate for interest from ineligible buyers.
David Trissel, President and CTO of EarlyIQ is leading their integration of the Vertalo platform with the EarlyIQ verification services. “Our partnership with Vertalo will solve the problems of efficiency, cost, and delays that can prevent security tokens from fulfilling their promise to bring liquidity to asset sales. By allowing parties to maintain evergreen accredited investor status via a subscription model — and sharing that status on the blockchain with all stakeholders — more transactions will be processed faster and at lower cost with fewer dropouts. We believe that people should own their data and EarlyIQ’s partnership with Vertalo helps us to realize that goal.”.
The Vertalo platform is operating in a closed beta now with expected public availability in Q4 2018. Clients and customers of EarlyIQ can apply to join the Vertalo beta by visiting www.vertalo.com or sending an email to email@example.com. EarlyIQ and Vertalo expect to release their jointly-managed subscription service in Q3 to select partners and broker-dealers.
Vertalo is a stakeholder registry and eligibility platform that bridges primary issuance and secondary trading of digital securities. Founded in 2017 as a Cayman-based subsidiary of SeriesX, Vertalo is focused on solving problems related to the purchase and sale of security tokens by institutions and individuals. Vertalo is currently in private beta and will launch a security token fundraise for accredited investors beginning in September 2018. For more information about Vertalo or SeriesX, please visit www.vertalo.com
EarlyIQ, Inc. based in San Diego, CA, is the leading provider of simple, secure online diligence and compliance solutions for private financial markets including crowdfunding, peer lending, angel, accredited, private equity, and venture capital. Their efficient, secure and streamlined solutions are used to help evaluate private investment opportunities while also enabling compliance with Federal regulations including SEC Regulation D, Rule 506 accredited investor verification, Bad Actor compliance and Regulation Crowdfunding. Visit www.earlyiq.com
Kamp Media Relations