Digital Securities platform Tokensoft has used the Ethereum blockchain to distribute $4m in equity to investors.
The seed round, which featured Base10, e.ventures, and Coinbase Ventures started back in July 2018 and each investor has now received a digital representation of their investments.
Tokensoft Distributes Equity Using Ethereum Blockchain
Tokensoft, a digital securities platform for enterprises and financial institutions, issued the payment using an ERC-1404 token, a token used for accounting and compliance services.
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The payment is based on a Simple Agreement for Future Equity (SAFE) model, and by using the ERC-1404 token, it ensures the SAFE agreements will be enforced on-chain.
When activated under the SAFE agreement, shareholders will have access to a secondary market where they can buy and sell their shares.
Speaking about the equity distribution, Tokensoft CEO Mason Borda said, ‘We have proven with our customers that the blockchain can streamline and automate secondary transfers.’
“This is a broker-style experience where investors can log in their investment account and they can interact with their equities on the blockchain, just like they would at Fidelity or E-Trade,” said Borda.
According to Tokensoft, investors in equity will soon be able to benefit from real-time authenticated access to ownership information, safe in the knowledge that it benefits from the security and immutability of the Ethereum blockchain.
As well as this, investors will receive dividend payments in the form of U.S dollars in conjunction with Signature Bank’s, Signet, as well as DTAC, a Securities and Exchange Commission-registered transfer agent.
Investor Meltem Demoirs, said ‘While many in the industry speak of the benefits of digitizing private capital markets, Tokensoft has actually done this with its own shares.’
‘I have the ability to hold shares in my wallet, receive dividends, bids or offer shares and gather real-time market data that facilitates price discovery,’ Demirors added.
It’s the latest of several announcements by vendors in the digital asset issuance space. The market is now the hottest battle-ground in blockchain with platforms competing for market share by offering increasingly sophisticated platforms for issuers and investors alike.
With this announcement, it’s clear Tokensoft is putting its vision into practice, and with such sophisticated technology offering real-time dividends, and more access to their investments, it’s clear how far blockchain technology has come in the few years since being touted as the future of securities.
It’s a huge move forward for Tokensoft, Ethereum and the blockchain space in general, and while it’s still early days, it can be without doubt that things are advancing rapidly, and it can be expected that things will keep growing.
Author: Tommy Limpitlaw