FinTech Merchant Bank and Vertalo Partner To Tokenize $200M In Securities on Tezos
Over 20 companies are expected to tokenize securities that represent about $200 million in deals on the Tezos blockchain, after a new partnership between DealBox, the fintech merchant, and Vertalo, the software provider, has been closed.
The announcement was made on Monday and says Vertalo is going to tokenize 22 securities that are issued by clients of DealBox. Dave Hendricks, the co-founder and CEO of Vertalo, said that this will provide liquidity and data management services. It should be noted Vertalo has registered with the Securities and Exchange Commission (SEC) as a transfer agent.
DealBox is an Intermediary and Vertalo the Tech Provider
Hendricks mentioned that Vertalo is the tech provider in this partnership, whereas DealBox acts as an intermediary between the tech company and clients. He also said this is the preferable situation because Vertalo prefers to collaborate with channel partners, even if it can work with issuers directly. The Vertalo customers number is going to double as far as digital security issuance goes. As of January this year, the company had 18 clients. Here is what Henricks said regarding how tokenizing may be able to increase liquidity:
“The private assets are a bigger market than public securities. Because of the antiquated methods for asset management, and for ownership of private assets, owners of private assets cannot obtain liquidity.”
Vertalo Decided on the Tezos Network 6 Weeks Ago
Vertalo formally decided on the Tezos network to be its security issuing default blockchain a month and a half ago. It supports Tezos and Ethereum (ETH) issued securities but made the announcement in January this year that it encourages its customers to go with Tezos if possible. The chief investment officer and president at DealBox, John Nance, said the partnership with Vertalo will help the digital investments market infrastructure to develop. Here are his exact words:
“This idea of crowdfunding and using online investment platforms is pretty new.”
He added some companies that are well established may not have what it takes to support the issuing of such securities.
DealBox Hopes for Migration to Tezos
While DealBox has had Stellar blockchain issued securities in the past, it’s hoping for a migration to Tezos. Here are Nance’s exact words on the matter:
“We’re going to be bringing a significant amount of capital to the Tezos platform.”
As Hendricks said, the integration already started and should continue for the entire second quarter.