Digital Securities
Playing in the ‘Tokenization Sandbox’ with Vertalo
Launch Day
Digital securities are here. We know what they can do, and the opportunities that they can open up. All that is needed now is a good sales pitch, and adoption will come; A pitch that doesn’t just promise, but actually delivers on things like,
- Cost savings
- Intuitive platforms
- Accessible
- Flexible
In an effort to expedite this adoption, Vertalo has just announced the launch of their free ‘Tokenization Sandbox’. With it, they hope to check off all of those points, and more. Vertalo has the following to say,
‘Through this new initiative, participants in the Digital Asset industry can, at no initial cost, implement and learn by tokenizing digital assets in transactions that would otherwise incur expensive software development and consulting fees that routinely cost in excess of $50,000 dollars per single asset tokenization.’
Sandbox
So what exactly is a Sandbox, and why are they important?
We all need a safe space, and that is exactly what a Sandbox is – a testing environment which acts as a safe space to experiment and try new things. In this particular instance, the Sandbox has a theme – Tokenization.
We need sandboxes, because they facilitate change. This could be change to regulations by proving to those that make them, that there are new ways of achieving old goals safely. Or maybe it is a scenario, such as the one described here today, where a new sector is trying to garner new users and adoption through validation of the potential in their offerings.
Why Now?
Vertalo has stated that the goal of this launch, is to drive adoption of digital securities. Why now though?
Well, the world’s economy is changing. Traditional means of investing, and the services which make it possible, need to change with it.
With the current state of flux surrounding investment operations worldwide, the present is as good a time as any to begin really pushing for the adoption of new standards; Standards which Vertalo is working hard to develop, and fuel adoption of.
Is Anyone Listening?
Now that we have established what a sandbox is, and why one is needed now, is there anyone actually interested in taking part?
Before having even launched, 27 companies, and counting, have already applied to take part – essentially conveying a resounding ‘YES’.
Some of the noteworthy names among those to be participating include,
What’s in the Box?
Those joining the fun in the Tokenization Sandbox, can expect a variety of features and capabilities on offer. They list the following solutions as being included:
- Cap table and investor list file upload.
- Tokenization of the cap table or client list in minutes.
- Deployment of the newly-issued token across a cap table or client list in minutes.
- Creation of Keyless Wallets in minutes that are accessed over the web using email address and password.
- Investor access to their Keyless Wallet accessed through an email/password driven website.
- Option for investors to utilize self-sovereign wallets in lieu of their Keyless Wallets.
- Implementation of a Controller Function to enable Issuers to address fraudulent or mistaken transactions, abandonment, escheatment, and transfer upon death requirements.
- Ability to swap chains in minutes without impacting the underlying security or its Investors.
- Connection to previously integrated Service providers
While Vertalo continues to support multiple blockchains, they have made it clear that they feel Tezos is the answer, moving forward, for a variety of reasons, which we took a look at HERE.
Who is Eligible?
With adoption being the goal, it is convenient that the Tokenization Sandbox is open to a wide variety of candidates. Those eligible for participation include:
- Token issuers
- Broker-Dealers
- Custodians
- Exchanges
- Alternative trading systems (ATS)
With 27 right out of the gate, it shouldn’t be a surprise to see companies fitting within each bullet point taking part.
Commentary
Along with launching the Tokenization Sandbox, Dave Hendricks, CEO of Vertalo, took the time to share his thoughts on what the program has to offer. He stated,
“The Vertalo Sandbox Program is an innovation that is designed to reduce obstacles to digital asset transformation and to empower market participants…In order to create confidence in the digital transformation programs, we need to move past expensive services for commodity transactions such as token issuance.”
He continues,
“The Vertalo way to do this is to empower companies to model and learn from their tokenization activities, in a freemium and no-risk manner, in the Vertalo Tokenization Sandbox. As companies finalize their capital structure, fundraise strategy and issuance process, Vertalo can assist these companies by moving them into production, or they can seek the services of another provider if Vertalo is not a fit. Exposing investment banks, issuers, and broker-dealers to Vertalo's user-friendly platform will push us far ahead of where we are today.”
Building Momentum
If you recognize the name ‘Vertalo’, it might be from our recent look at their work with RECM. In this look, we discuss the tokenization of up to $300M in real estate, with Vertalo underpinning the entire process.
Vertalo to Underpin Tokenization Effort Surrounding RECM Portfolio
Vertalo
Based out of Austin, Texas, Vertalo was founded in 2017. While specializing in cap-table management, Vertalo have expanded their capabilities, providing a diverse set of services surrounding digital securities.
CEO, Dave Hendricks, currently oversees company operations.
