London-based blockchain company 20|30 has offered up 5% equity in its stock, as a test of tokenised equity offering issuance.
The test involved the London Stock Exchange Group who sent settlement instructions to a public blockchain via 20|30’s capital raising platform TokenFactory, powered by fintech company Nivaura’s technology.
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20|30 is a venture studio building products and services using blockchain technology, of which TokenFactory is the first to go to market.
Such platforms are designed to empower investors by affording access to investment opportunities with more liquidity than in mainstream equity trading.
TokenFactory aims to tokenise equity within a regulated framework, compliant in UK law, and become a fully authorised investment firm able to arrange issuance of equity tokens to major companies in the UK.
Tomer Sofinzon, Founder & CEO of 20|30, says: “For tokenisation to be embraced it is vital that the issuance and trading of tokens be transacted with the same level of trust and legal certainty as shares and other securities.
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By GlobalData“That is why we are delighted to announce that for the first time an equity token offering has harnessed blockchain to effect settlement in collaboration with a major stock exchange.”
Blockchain technology and tokenised equity
Tokenised equity is a new, emerging method of raising capital for a business by issuing shares in the form of digital tokens, accounted on a blockchain.
It is one example of a use case of blockchain technology that could hold resonance for the mainstream financial world.
Sofinzon continues: “We have succeeded in what we hope is the first step in reinventing capital markets. By tokenising our own equity at 20|30 through TokenFactory, we can demonstrate that there is a far better way to unlock the value of equity, built on innovative blockchain technology which will transform the way companies raise capital.
“Tokenisation will unlock value in a whole range of assets, from existing shares to new issuance, bonds, property, IP, fine art and much more.”
Robert Barnes, global head of primary markets and CEO Turquoise, LSE Group, adds: “We are delighted to have participated in the FCA’s Sandbox 4 in partnership with Nivaura.
“LSE Group is committed to exploring technology innovations that can help drive further efficiency and growth across the capital markets lifecycle.”
