North Capital Investment Technology, a market-leading provider of technology and brokerage services for exempt securities offerings, has been approached by ConsenSys AG to accelerate the growth of its custodial platform and secondary trading infrastructure.
ConsenSys AG is a venture production studio building decentralized applications and various developer and end-user tools for blockchain ecosystems.
In 2017, North Capital rolled out its transaction platform TransactCloud, which enables the offering of exempt securities, including tokenized securities.
North Capital Private Securities is a custodial broker-dealer that has focused on exempt securities since 2010 and will begin providing custody of securities tokens later this summer. The firm also has applied to become an ATS (an SEC-compliant Alternative Trading System) to facilitate secondary trading of securities tokens.
According to Joe Lubin, the founder of ConsenSys, tokenization will have a profound impact on the securities business. Joe said North Capital shares the vision that tokenization can be used to increase access to capital, improve liquidity and market efficiency, and reduce transaction costs.
On their part, CEO of North Capital, Jim Dowd said ConsenSys is an ideal partner. He noted that they bring unparalleled technical expertise. According to Jim, both parties had been exchanging ideas on custody and secondary trading last year and it became apparent that they have a shared vision and could accomplish much more through collaboration than by working separately.
“One of the exciting things about advising on a transaction like this is the opportunity to introduce visionary leaders to each other, allowing them to build innovative products and programs together,”
said Scott Daspin, director of institutional sales at Triad Securities Corp, who advised on the transaction.
“North Capital and ConsenSys are true standard-bearers in the industry and I expect them to do great things together.”
Dowd believes that secondary trading is an area that will especially benefit from the collaboration between ConsenSys and North Capital.
“Many of the issues we are trying to address are timeless: How can we best bring liquidity into the market? How do we ensure fairness and transparency for market participants? How is the regulatory framework likely to evolve? There's no single answer to these questions. We're confident that our partnership with ConsenSys will lead to more thoughtful analysis and therefore, to better outcomes in these areas.”