LSEG-Operated Platform Hosts £3 Million Tokenized Share Sale for 20|30 Blockchain Startup
LSEG-Operated Platform Hosts £3 Million Tokenized Share Sale For Blockchain Startup
20|30, a new blockchain startup, is working on a trial presently that would make it possible to use tokenized equity, which would be a major advancement to the financial market. Recently, the platform engages in a sale of tokenized shares, bringing them £3 million ($3.93 million) in funding. The 20|30 platform is operated by the London Stock Exchange Group (LSEG), which issued real cash during the share offering with their Turquoise equity trading platform.
The goal of 20|30 is ultimately to tokenize both equity and other forms of securities, made possible with the use of distributed ledger technology (DLT). Last July, the firm was involved with the fourth group of the UK Financial Conduct Authority’s (FCA) regulatory sandbox.
Both LSEG and FCA had recently confirmed with CoinDesk that they were working with 20|30, along with the Nivaura DLT-based startup in an effort to show that a company’s equity can be tokenized. Taking it a step further, this would also show that a custody, clearing, and settlement system could be completely compliant. According to the LSEG, the goal of the project was to investigate the different tools that could help raise capital within companies, but “in a more efficient and streamlined way.”
Now, since the Ethereum-based equity token has already been through a primary issuance to investors, the “next step” is to provide consumers with secondary transfers. Tomer Sofinzon, one of the co-founders for 20|30, told the Financial Times that the secondary transfers would pave the way for the company to “work our way up the ‘capital stack’ to reinvent private equity and public markets.”
Back in July, CoinDesk spoke with the CEO and chief product architect of Nivaura – Dr. Avtar Sehra. During the discussion, Dr. Nivaura commented that the technology that they offer would let a user “do all the legal documentation, tokenize these assets and execute them.” He called the actions that the LSEG has taken in this progress “forward-thinking enough” to move them into the market.