Vertalo, the cap-table company making waves in blockchain, has announced the release of its ‘V-Token’ software.
This software, V-Token, is a described by Vertalo as a ‘placeholder’, which will allow for issuers to issue digital securities at a later point in the issuance cycle. Until now, this software has only been available to Vertalo. For those interested, access to V-Token is now open to all token issuers.
The purpose of V-Token is to make life easier for potential issuers of digital securities. As it stands, one of the larger hurdles in the space remains the cost associated with the creation of said tokens. The issue is amplified by the fact that this step often takes place prior to a company raising any capital – meaning the company had best be sure that their capital raise is successful, and their token creation wasn’t done in vain.
With this in mind, Vertalo created V-Token for their own usage in 2018. V-Token allows for token creation to occur POST-raise. In doing so, this form of delayed tokenization provides issuers with greater flexibility in their operations.
This token is structured as ERC-20 compliant, while offering various traits, vital to digital securities. This includes trade restrictions, and other measure necessary to be compliant with regulations.
Along with their announcing the availability of V-Token, Dave Hendricks, CEO of Vertalo, took the time to comment. The following is what he had to say on the matter.
“The current high cost of tokenization is the main impediment to widespread adoption and roll out of digital assets. Today, Issuers who are interested in digital approaches are being asked to spend hundreds of thousands of dollars to design and produce tokens before they have successfully raised capital. The unit economics need to change.”
“Free Tokenization is a logical next step in the evolution of the digital asset industry. But as we have seen with previous protocol standards like Ethernet and TCP/IP, it’s difficult to monetize the standards themselves. The role of tokens is naturally subordinate to actually raising capital. It’s been amply demonstrated that investors don’t invest in tokens, or in token standards, rather they invest in companies, assets, access to liquidity, and revenue streams. Free token issuance reduces the risk and complexity of tokenizing assets. Delaying the choice of which security token standard to use until the infrastructure is more fully developed lowers the cost and risk of token implementation.”
Vertalo is a United States based company, which was founded in 2017. Above all, Vertalo functions as a capitalization table specialist, while providing services for investor onboarding and compliance adherence.
Company operations are overseen by CEO, Dave Hendricks. We had the pleasure of interviewing Dave Hendricks earlier this year. Check out this discussion to learn more about Vertalo and their goals.
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Vertalo has found themselves a mainstay in our newsfeed over the past few months. Whether providing services which facilitate the completion on an STO, or forming partnerships to advance the industry, Vertalo keeps busy. Here are a few articles detailing what they have been up to lately.