Vertalo Launches Tokenization Sandbox Program For Issuers & Service Providers To Accelerate Adoption Of Digital Asset Issuance and Tokenization
This story was originally published by Joshua Stoner in Securities.IO as https://www.securities.io/playing-in-the-tokenization-sandbox-with-vertalo/
27 Global Issuers, Capital Markets Firms, and Ecosystem Service Provider apply for slots in industry-first platform
April 23, 2020 — Austin, TX — Vertalo, the digital transfer agent simplifying the issuance and management of compliant digital securities and connects broker-dealers, issuers, custodians, and exchanges through its B2B SaaS platform, is excited to announce the limited availability of its Tokenization Sandbox (“Sandbox”) Program. Vertalo’s industry-first Sandbox is a staging tool and resource for issuers and service providers who participate in the Digital Asset Ecosystem. Through this new initiative, participants in the Digital Asset industry can, at no initial cost, implement and learn by tokenizing digital assets in transactions that would otherwise incur expensive software development and consulting fees that routinely cost in excess of $50,000 dollars per single asset tokenization.
TQ Tezos, Co-founder, Chris Lawlor, adds, “The Vertalo Sandbox program enables market participants to test the benefits of digital securities using Tezos. This sandbox program is another step towards making digital securities a more common reality. TQ Tezos is proud to support Vertalo’s engineering team as they develop Tezos-based technology to improve and modernize private markets.”
tZERO CEO, Saum Noursalehi says, “The entire digital asset space will benefit from Vertalo’s new tokenization technology and its application to quality real estate projects. We look forward to supporting the company’s technology in our trading platform.”
With the growing popularity of digitizing assets through tokenization, and the expected explosive growth of this sector as a result of the upending of traditional paper-based financial markets, digital-oriented companies including Issuers, Broker-Dealers, ATSs, Exchanges and Custodians are accelerating their adoption of new capital markets technologies. Until now, many firms have struggled to visualize and stress-test their transactions prior to paying what some might consider exorbitant tokenization fees for black-box platforms.
CEO of Serviens, an Issuer / real estate firm, Kareem El Heneidi, explains, “Tokenizing Real Estate assets continues to be marked by long delays and complex traditional processes. By using the Vertalo Tokenization Sandbox, Serviens can now assist real estate clients by easily modeling their tokenization strategies pre-production in a no cost and no risk “Sandbox” environment until we are ready to launch. The Vertalo platform connects us to an ecosystem of sophisticated providers enabling end-to-end distribution that’s digital, compliant and cost-effective. Vertalo’s Tokenization Sandbox offers the best path to bring digital RE assets to market. “
The current absence of a trial and error process for tokenization prior to committing significant resources is considered a major constraint on the continuing growth and maturation of the Security Token Ecosystem. Without an option to test drive issuance technology prior to selecting, issuers and broker-dealers are subject to questionable sales tactics and assurances and operate at arms length from otherwise elementary issuance processes. Vertalo’s Sandbox approach is designed to reduce tokenization costs by as much as 80% from other currently available providers.
“Chintai is an industry leading FinTech service provider for secondary trading and issuance of tokenized securities.” says David Packham, Chintai CEO. “The Vertalo Tokenization Sandbox provides Chintai with a production environment to model, test, and integrate their high-performant technologies with the Vertalo product suite — all without incurring a slew of unknowns, obligations and high costs. With the Sandbox, Chintai can now directly test and showcase our cutting-edge client products without incurring any cost or risk.”
To make digital transformation more accessible and less mysterious to capital markets professionals, Vertalo has introduced a novel innovation: The Vertalo Tokenization Sandbox Program. With this new testing and staging environment, digital-curious issuers can tokenize their cap tables and assets in a free, no-obligation, no-risk and hands-on environment. Once ready, the actual tokenization process can take as little as 90 seconds. Using Vertalo’s Sandbox approach, companies can easily and quickly create pro-forma editions of their tokenized cap tables and assets and prepare for an official release at a later date.
“The Vertalo Sandbox Program is an innovation that is designed to reduce obstacles to digital asset transformation and to empower market participants,” says Dave Hendricks, Vertalo’s CEO.
“In order to create confidence in the digital transformation programs, we need to move past expensive services for commodity transactions such as token issuance. The Vertalo way to do this is to empower companies to model and learn from their tokenization activities,in a freemium and no-risk manner, in the Vertalo Tokenization Sandbox. As companies finalize their capital structure, fundraise strategy and issuance process, Vertalo can assist these companies by moving them into production, or they can seek the services of another provider if Vertalo is not a fit. Exposing investment banks, issuers, and broker-dealers to Vertalo’s user-friendly platform will push us far ahead of where we are today.”
The Vertalo Sandbox is not limited to Issuers, but also includes Service Providers (Broker-Dealers, Custodians, Exchanges, and ATSs) who have asked to participate. Participating Service Providers can use Vertalo’s Freemium Sandbox to simplify and accelerate their integration and implementation efforts across the Digital Asset Ecosystem. Once a Provider has completed this 4-week interactive process, they will be able to provide their services to any applicable Vertalo issuer or investor without additional costly integration and implementation cost. Vertalo will also provide promotional space on its website advertising the providers integration and service offerings.
“I believe that the tokenization of financial assets is going to change the way we use financial services. While collaboration and interoperability are the key factors to drive adoption of digital assets, I am excited to see innovators like Vertalo support other startups through this Sandbox program” says Santosh Yellajosula from Singular Network — which is currently focusing on digitization of private companies equity for the Indian market.
The Vertalo Platform transactions included in the Vertalo Freemium Tokenization Sandbox include:
- Cap table and investor list file upload.
- Tokenization of the cap table or client list in minutes.
- Deployment of the newly-issued token across a cap table or client list in minutes.
- Creation of Keyless Wallets in minutes that are accessed over the web using email address and password.
- Investor access to their Keyless Wallet accessed through an email/password driven website.
- Option for investors to utilize self-sovereign wallets in lieu of their Keyless Wallets.
- Implementation of a Controller Function to enable Issuers to address fraudulent or mistaken transactions, abandonment, escheatment, and transfer upon death requirements.
- Ability to swap chains in minutes without impacting the underlying security or its Investors.
- Connection to previously integrated Service providers
Sandbox is available XXX to new and existing Issuers, Investment Banks, Broker-Dealers, Exchanges, and ATSs. Existing users who have already produced a token on another platform are also welcome to test an upgrade of their previously issued security to a Vertalo-issued and managed version.
Launched after their own March 2018 STO, Vertalo is a B2B SaaS company founded to map the gaps between primary and secondary trading of digital securities offerings. As the ‘Operating System for Digital Assets’, Vertalo is focused on connecting and enabling the digital asset economy, providing an industry-leading cap table and investor onboarding solution that facilitates direct ownership and direct listing of any private asset. In addition to offering direct issuance services to private companies, Vertalo also offers white-label, licensed, and joint venture opportunities to capital advisors, broker-dealers, and investment banks. A subsidiary of SeriesX, Vertalo is headquartered in Austin, TX with offices in New York City and Seoul. Learn more about SeriesX and Vertalo at www.vertalo.com.
tZERO Group, Inc. is a technology firm that was founded with the goal of utilizing distributed ledger technology (DLT) to revolutionize Wall Street so that it is more efficient, accessible and transparent. In 2016, tZERO ATS, tZERO’s wholly-owned subsidiary, became the first U.S. regulated trading venue to trade a digitally enhanced security. tZERO is a keiretsu company of Medici Ventures, the blockchain subsidiary of Overstock.com, Inc. (NASDAQ:OSTK).
tZERO is not a registered broker-dealer, funding portal, underwriter, investment bank, investment adviser or investment manager, and is not providing brokerage, investment banking or underwriting services, recommendations or investment advice to any person, and does not provide any brokerage services. tZERO takes no part in the negotiation or execution of secondary market transactions for the purchase or sale of securities and at no time has possession of investor funds or securities in connection with such transactions
ABOUT tZERO ATS
tZERO ATS, LLC is a broker-dealer registered with the U.S. Securities and Exchange Commission and a member of the Financial Industry Regulatory Authority and Securities Investor Protection Corporation. More information about tZERO ATS, LLC may be found at https://www.finra.org/ and https://ats.tzero.com/.
tZERO ATS, LLC operates the alternative trading system known as the tZERO ATS and has the right to determine which digitally enhanced securities may be traded on the tZERO ATS by its subscribers, in its sole and absolute discretion. In order to promote a fair, orderly, and efficient platform for the trading of securities on the tZERO ATS, tZERO ATS, LLC conducts due diligence of each digitally enhanced security proposed to be traded on the tZERO ATS, as well as the issuer of those securities. tZERO ATS, LLC has not completed its due diligence on on the securities referenced in this press release and there is no guarantee that the securities securities will qualify for trading on the tZERO ATS or that any broker-dealer subscriber to the tZERO ATS will make a market or otherwise facilitate secondary trading of the securities on the tZERO ATS. No investor should rely upon this press release as evidence that a secondary market or any liquidity for the securities will exist.
Serviens Financial Services is an independent real estate capital markets firm specializing in structured financing and capital for acquisition, disposition, re-financing and capitalization of office, multi-family, hospitality, industrial, and retail properties across the United States. Our flagship product, Real Estate Index Linked Shares (REILS), syndicates bespoke financing solutions for U.S. real estate sponsors. We provide efficiencies and additional value, enhancing U.S. real estate through optimized use of cash flows, real estate related tax benefits, and deductions. REILS strategically positions U.S. real estate sponsors more competitively by accessing diverse global sources of U.S. & non-U.S. capital, creating a seamless and robust alternative to traditional methods of financing.
Kamp Media Relations