AlphaPoint Upgrades Its Security Token Offering Technology To Attract Institutional Investors
AlphaPoint Upgraded Its Security Token Offering Tech To Attract Institutional Investors
A blockchain services company called AlphaPoint has recently decided to upgrade its technology in order to offer better Security Token Offerings (STOs). This, the company believes, will be key in order to attract more institutional investors.
The new plan of the company was revealed in an interview with Coindesk. In it, the representant of the company affirmed that the upgraded tech of the company will let many financial institutions as real estate funds and private equity companies issue their own securities using the services of AlphaPoint.
Why emit securities? In part because this would enable a company to have a more liquid market. Securities can be easier to trade, especially when they are digital, so you will be creating a more interesting market. Using the blockchain for that can create a secure and private way to trade and store these securities.
The CEO of AlphaPoint, Salil Donde, has affirmed that the enterprise-grade software used by the company will enable institutions to offer their assets on exchanges. According to him, the company is enabling the customers to streamline the issuance of securities and to use smart contracts to make it more secure.
He believes that many institutional investors are entering this world now, so this is why STOs are going to be so valuable in the future.
At the moment, two clients of the companies are already using this kind of service: Laureate Digital Securities and Muirfield Investment Partners. The first one is a blockchain-based management company, while the second one is a private equity real estate investment company.
Both companies are using the services since last year. To them, it makes it easier for investors to participate in their markets. Laureate, especially, is using the technology to manage its own security token offerings and their trading in secondary markets as well.
AlphaPoint affirms that the main positive aspect of stop using paper in order to use the blockchain technology is that now the companies will spend less and they will also have a quicker and easier process to manage as well as all the information will always be stored on the blockchain technology.
Without the blockchain, people need to spend time on different online portals, compliance checks and now all this time can be reduced to mere minutes.
According to Donde, now security tokens are finally starting to be really adopted by capital markets, so this is the perfect time to use an emergent technology to drive transparency up and upgrade the trust bond between investors and the companies.
AlphaPoint recently participated in a $15 million USD funding round led by Galaxy Digital. The company has also made some important hires recently, such as Scott Grayson and Kapil Rathi. Grayson worked in the R3 consortium before and Rathi at CBOE Global Markets.