Recently, CapLinked announced that the firm had successfully raised $2.5 million that will be used to establish a blockchain-driven solution for the nascent tokenized equity markets, known as Security Token Offerings (STOs). The money will be utilized in the development of TransitNet, a platform that will avail post-issuance services and instruments to manage title authentication, reports and governance to the issuers of security tokens.
Additionally, CapLinked has also hired David Madden as the new Chief Revenue Officer of the TransitNet project. Madden is not new to the cryptocurrency trading industry, having been the leader of a similar department at Trident Trust. Moreover, he has amassed a vast wealth of experience in the two decades he has worked in the financial services sector. Primarily, David will oversee the company’s operations from the New York office.
— Transitnet (@TransitNetProto) July 11, 2018
According to Chris Grey, the COO of CapLinked, the challenges that arise from the decentralization of security tokens are the core reason behind the creation of TransitNet. The TransitNet platform will overcome these shortcomings by enabling issuers and traders to evaluate financial reports, keep a log of all transactions, and verify the ownership of the tokens. Furthermore, all activities are recorded on the immutable blockchain, thereby enhancing accountability and transparency.
The CapLinked seed funding event received baking from several notable crypto funds, including Alphabit Fund, NextProtocol Venture, BKCM, and so on. The platform will be accessible to issuers, traders, and service providers and financial institutions. As per the CEO of CapLinked, Erick Jackson, distributed ledger technology has massive potential of transforming issuance of security. Unlike their conventional counterparts, tokenized securities are more efficient and have a significantly higher liquidity. Therefore, with the development of TransitNet, the market capitalization of security tokens can increase to a whopping $1 trillion within the next two years.
Traditionally, CapLinked is renowned for its impeccable security, tracking and governance features. TransitNet also implements these, as its infrastructure is based on the core competencies of CapLinked. In this regard, Justin Schmidt, Translunar One’s founder, expressed his enthusiasm for being a key contributor to the development of TransitNet.