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This is the first ever offering by a company facilitating both secondary trading as well as trading of digital securities.
In a major breakthrough for the Security Tokens marketplace, the “BCAP” security tokens issued by Blockchain Capital were traded on the SharesPost Alternative Trading System. This is an important milestone as it was for the first time that a secondary trade for security tokens was executed.
Blockchain Capital is a reputed venture capital firm that focuses exclusively on the blockchain technology sector. Furthermore, it becomes the first marketplace to facilitate custody as well as secondary trading of the digital securities. Thus accredited investors will be able to trade digital securities in the open market and store them in the online brokerage accounts on the SharesPost Marketplace.
The BCAP tokens run atop the Ethereum blockchain network and represent shares of the Blockchain Capital III Digital Liquid Venture Fund. SharesPost Founder and CEO Greg Brogger acknowledged the latest development saying:
“This is an important milestone for the digital securities ecosystem. Now companies can efficiently raise capital and provide liquidity globally by leveraging blockchain technology in a way that complies with securities laws. We are very excited to be connecting the more than 50,000 institutional and individual accredited investors using the SharesPost marketplace with companies and funds like Blockchain Capital that are leading the way. We believe that over time digital securities will join preferred and common stock as the mainstays of the private capital market.”
SharesPost’s Decision To Offer Secondary Trading of Digital Securities
Having pioneered the primary capital market for nearly a decade, SharesPost now plans to leverage its expertise and proven securities trading technology. The company thus plans to give its clients to explore the latest blockchain technology and digital securities in the next journey of capital markets innovation.
According to the press release, SharesPost is a FINRA registered self-clearing broker-dealer and an SEC-registered Alternative Trading System. This helps the company to provide primary issuance, secondary trading and digital securities custody. At present, SharesPost only supports Over-the-counter (OTC) trading for digital securities. However, it soon plans to bring real-time trading through a completely electronic order book. Furthermore, the platform also provides investors with access to institutional-grade research focused on digital securities and digital assets.
Blockchain Capital Co-founder and Managing Partner, Bart Stephens said,
“We are pleased to announce trading of the BCAP token on the SharesPost platform. SharesPost is unique in its support of private companies and funds because they offer a comprehensive platform on which our investors can interact to enable liquidity. SharesPost has traditionally endeavored to provide the Investor community with a wide variety of information, data and analysis on issuers and assets. We’re hopeful that their platform will be a resource to our investors and allow us to deepen our relationship with them over time.”
With regulatory bodies stepping into the crypto market, security tokens are likely to take the center-stage going ahead. To know more about security token read our definitive guide on STOs and security tokens and their importance in the crypto market.