By leveraging the power of blockchain technology and DeFi, Texture Capital aims to bring tokenized security trading to the secondary markets.
The US financial regulator FINRA has recently issued a new license to Texture Capital for issuing digital securities (security tokens). Thus, Texture Capital will soon commence its operations as a digital securities broker-dealer along with functioning as an Alternative Trading System (ATS).
Texture Capital is a one-year-old blockchain company and is a popular institutional marketplace for private capital. The latest upgrade will allow Texture Capital to start issuing, tokenizing, and trading the digital securities. In order to streamline the current market structure, Texture Capital has gone heavy on blockchain and smart contracts. Speaking about the latest developments, Richard Johnson, founder and CEO of Texture Capital, said:
“We are delighted to achieve this milestone, and excited to launch our business. Blockchain technology has tremendous potential to improve market structure by enhancing transparency, streamlining workflows, and automating processes. It is important to ensure that we innovate within the established regulatory frameworks.”
Also, by using the next-generation blockchain technology, Texture Capital aims to transform the trillion-dollar market for private securities. This includes tapping into the DeFi sector while leveraging the power of blockchain. Johnson added:
“Private markets are ripe for disruption. We have already developed foundational functionality including token issuance and secondary trading, In the future, we will harness the creativity coming out of DeFi (Decentralized Finance), to deliver on our bold vision to rebuild global markets and improve capital flows throughout the economy.”
A lot of private securities players have been working on issuing security tokens on-chain due to the additional benefits. This also includes factors like bringing higher transparency and efficiency to private equities. The CEO states that building a secondary trading hub within the platform will allow investors to seamlessly flip their tokens.
Johnson wants other non-blockchain companies to experience the benefits of tokenized securities. Texture Capital says that it expects 20 more issuers on its platform in the next six months. This is certainly a sizeable expectation and getting more tokens will only boost the overall liquidity of the platform.
The SEC report from August 2020 noted that “most private securities still do not trade in secondary markets”. Besides, the lock-up periods and other restrictions have hampered the liquidity. It looks as if Texture Capital is all set to overcome the market hurdles and solve the underlying problems.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
