Digital Assets
The Future of Ownership & Liquidity
The Vertalo Digital Asset Management Platform reduces the barriers to Digital Asset Adoption.
By simplifying the interfaces used by issuers and investors, and by reducing technological hurdles for issuers and investors alike.
Vertalo’s comprehensive API-based platform connects seamlessly with key ecosystem participants, including custodians, broker-dealers, KYC/AML providers, Exchanges, ATSs, Investors, and the issuers who own the assets that are tokenized.
Unlock Secondary Liquidity with Digital Assets
Regulated Exchanges Allow for Secondary Market Liquidity
On a public stock exchange, secondary liquidity generally enables founders and early investors to cash out their assets, but at the high costs of dilution and fees associated with IPOs. With digital assets, stakeholders exercise greater ownership and control, with more options for primary and secondary liquidity than traditional, proxy-based ownership models.
Vertalo’s blockchain-agnostic solutions give companies options for obtaining secondary liquidity. Ownership of a digital asset is tracked and managed through a distributed ledger technology (DLT) enabled cap table. Vertalo’s innovative cap table management software is paired with custodial or self-sovereign blockchain wallets to enable direct ownership, while also allowing for traditional Controller-type functionality.
From Vertalo’s DLT cap table platform, companies can distribute digital shares to investors and employees while controlling the amount available to sell via transfer and trade restrictions codified via smart contracts.
Vertalo’s extensive partner network provides connection with top-tier exchanges and alternative trading systems (ATS) so investors and holders can trade tokenized shares without the expense and dilution of an IPO.
IPO vs. Direct Listing
IPOs require underwriters to create and back new shares that become publicly available after the IPO. The underwriting cost is by far the most expensive part of an IPO, taking 4-7% of the gross proceeds, in addition to the time and costs of the underwriting process before the IPO takes place. Tokenizing digital assets on Vertalo requires no underwriters. Blockchain technology allows ownership tokens to be fractionalized and distributed without creating new assets or requiring a third party to get involved.
The other major cost of IPOs is the dilution of shares. Shareholder value, at the individual level, may be lower than it would have been if dilution had not occurred. Security tokens won’t require dilution, as existing ownership can be fractionalized and hard limits on the amount of tendered tokens can be set by the issuer. Early investors, employees, and advisors - all of whom normally find themselves locked up for 6 or more months after an IPO - may see improved liquidity options in a direct listing scenario as compared with a traditional offering method.
Vertalo is Leading the Way in Digital Asset Adoption