We help founders and investors handle their equity in the right way, not just by using our application but by also guiding everyone with all the important knowledge needed to handle equity properly. Eqvista is constantly trying to improve and expand our services so that we can offer you the best. This is why we have entered into a partnership with tZERO.
tZERO and its broker-dealer subsidiaries provide a blockchain-based trading platform for private companies and other assets. This partnership will particularly benefit our clients who are seeking a secondary liquidity solution that leverages digital technology to deliver a seamless continuous and automated trading environment for their stakeholders.
Digital Securities and Their Benefits
Before we explore how tZERO can help your company access secondary liquidity, let us take a deeper look into what digital securities are. Digital securities can be any kind of security that an investor can own today, such as equity, investment contracts, or debt.
Private digital securities have several advantages over traditional securities all while operating in a regulated environment:
- Customizability – Issuers have the ability to customize their offerings and trade to meet the needs of investors.
- Efficiency – Investor reporting, distribution, and corporate transactions (i.e. dividend payments, stock splits, etc.) can be real-time and automated.
- Access – Digital securities democratize access to capital markets by granting retail investors investment opportunities that were previously difficult to access and reserved for institutional buyers.
- Fast settlement – Transactions for private securities settle in a day rather than days or weeks.
- Programmable compliance features – Smart contract technology allows for regulatory and legal requirements to be programmed into the set of rules governing the blockchain.
Overview of Today’s Markets
Companies are staying private longer. The average time that a company stays private has gone from four years to eleven years. And this is the time where most of the company’s growth takes place. That is where tZERO comes into the picture.
tZERO democratizes access to private capital markets by helping private companies digitize ownership records and trade on a regulated platform. This potentially helps companies improve investor liquidity and gain access to new investors.
Explore tZERO – Join the Marketplace
Since 2014, tZERO has been the pioneer in the development and adoption of digital securities. It is an innovative liquidity platform for private companies and their assets. tZERO offers institutional-grade solutions for issues looking to digitize their capital table through blockchain technology, and trade on a regulated alternative trading system. tZERO democratizes access to private assets by offering a simple, efficient, and automated trading venue to investors, institutions, and broker-dealers.
The company focuses on developing the supply side of this marketplace by creating technology that enables issuers to issue, and relevant regulated market participants to support the issuance, trading, clearance, and settlement of digital securities. tZERO also supports the demand for and adoption of these assets by developing technology for regulated venues to enable digital securities to trade, and investing in subsidiaries and joint venture entities that own and operate such trading venues.
And now let’s look at what specific services this company provides.
Modernizing Securities Through Digital Securities
tZERO’s proprietary technology can tokenize a company’s capital raise or existing capital structure, new or existing funds, as well as illiquid assets, such as real estate or fine art. tZERO helps private companies digitize an asset’s ownership structure to provide investors transparency and reduce manual/administrative burdens in a regulatory compliant way that provides a path to secondary liquidity.
Secondary Liquidity for Private Companies on a Regulated Marketplace
tZERO’s wholly owned subsidiary, tZERO ATS, is an SEC-registered broker-dealer and member of FINRA and SPIC that operates an alternative trading system (ATS), which provides a licensed venue for the trading of digital securities. Private companies can improve investor liquidity and gain access to new investors on the premier marketplace for private securities.
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Note: This article is for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation for any security, nor does it constitute an offer to provide investment advisory. Eqvista does not provide legal, financial or tax advice.