Joining the Party
Securitize, Harbor, Vertalo, and now, potentially, TokenSoft subsidiary – DTAC LLC. In 2019, each of these companies have expanded their operations greatly. Soon, one commonality amongst them will, most likely, be their designations as SEC Approved Transfer Agents.
As recently as yesterday, we were reporting on what this development meant for Vertalo. Today, we turn our attention to TokenSoft, as they, too, look to assume the role of a ‘TA’ on their path to developing an ‘automated investment bank’.
All Systems Go?
To become a transfer agent, approval must, first, be given by the Securities and Exchange Commission (SEC) – for DTAC LLC, this process was recently started, as the company has registered to be considered for the role.
With the SEC providing a ‘yay or nay’ on received registrations within 30 days, we should soon find out if the sector will benefit from another TA.
What Does it Mean?
Becoming a TA opens various doors for companies which hold the designation; those that do, play a pivotal role in the handling of securities – both traditional and otherwise.
The following is an excerpt from one of our recently penned articles titled, ‘Titles and Designations Among Industry Participants’.
For companies which undergo the tokenization process and distribute tokens, a transfer agent is vital. Companies which assume this role are typically tasked with accurately tracking the activity and ownership of distributed assets. This means providing token issuers with an accurate picture of who is in possession of their digital assets, and in some instances doling out dividends to holders.
The SEC breaks down the roles of a transfer agent into the following 3 main categories.
- Issue and cancel certificates to reflect changes in ownership.
- Act as an intermediary for the company.
- Handle lost, destroyed, or stolen certificates
Roughly three months ago, TokenSoft announced the launch of a tool that foreshadowed the development discussed here today.
At the time, we reported on a new tool, developed by their team, which was built to ease the complexity of operations undertaken by transfer agents. This took form as an ‘administrative panel’ which allowed for the following capabilities, among others.
- Compliance management
- Theft/loss management
- Asset monitoring in real time
More details on how the tool will benefit transfer agents can be found in the following article.
TokenSoft CEO, Mason Borda, recently discussed these moves with CoinDesk. Here, he touched on how the company’s other offerings, such as their Knox Wallet, will set them apart from the pack. He stated,
“DTAC will be issuing tokens using our Knox wallet…It will be the only transfer agent that can securely issue and manage securities on the blockchain… We’re building all the things you need for an automated investment bank…DTAC can help companies go straight to IPO by managing shares on the blockchain. We do have all the pieces necessary.”
Operating out of San Francisco, TokenSoft was founded in 2017. In the time since their launch, the team at TokenSoft has developed a variety of blockchain based solutions, tailored towards the digital securities sector.
CEO, Mason Borda, currently oversees company operations.