The leading provider for liquidity of the private growth asset class, SharesPost, shared information with Yahoo! Finance today that they will be hosting a token sale. Rather than providing a token of their own, the provider is opening their platform to CityBlock to conduct a sale of their initial digital security tokens.
The platform will also be providing secondary liquidity in support of CityBlock Capital. CityBlock’s digital tokens will be use as a type of share, showing ownership interests in the fund. Once the sale has commenced, and the holding period ends, investors will have the ability to sell and buy the assets. SharesPost has already developed the Alternative Trading System (ATS) as the platform for these transactions.
The marketplace for SharesPost already is the home to 50,000 investors around the world that want to raise capital, both as institutional players and individual accredited investors. These investors also have the benefit of using the ATS as a reliable custodian, considering that it has already been registered with the U.S. Securities and Exchange Commission.
The co-founder and managing partner of CityBlock Capital, Rob Nance, was quoted by Yahoo! Finance, saying,
“The NYCQ Fund is intended to provide accredited investors with diversified access to blockchain infrastructure investments normally accessible only by institutional investors. CityBlock Capital believes that blockchain technology will deliver a much-needed modernization of the current financial system. SharesPost’s blockchain expertise, world-class technology platform, and global visibility and reach made it an obvious choice for CityBlock Capital.”
SharesPost’s founder and CEO, Greg Brogger, has also expressed his optimism and positivity over the choice that CityBlock made to host their event on the SharesPost platform. Calling this collaboration a “great opportunity” for their own marketplace, Brogger added,
“We are also excited to be at the forefront of tokenizing traditional assets like venture capital funds. We will continue to provide token issuers with a complete capital markets solution that includes primary issuance, secondary trading, and the investor relations tools to tell their story to the investment community.”
The NYCQ Blockchain Infrastructure Fund of CityBlock is particularly geared towards opportunities to expand and build upon the blockchain industry.
Blockchain technology is growing increasingly popular amongst portfolio companies, helping to settle trades, reduce fraud, and eliminate unnecessary middlemen. According to Yahoo! Finance, the companies that the venture fund bring in include
“clearing houses, exchanges, depositories, makers of market aggregation tools, securities services firms, data analytics, smart contract auditors, and issuance platforms.”
However, they are adamant in their decision to avoid investing in crypto or utility tokens of any sort.
SharesPost also allowed Blockchain Capital to start trading security tokens on its platform, which only began within the last month. The platform was originally launched in 2009 as a market for private tech companies, but their performance has led them to become the leading platform for such activities over the years.
They are FINRA-registered as a broker dealer, and their registration with the SEC provides confidence to potential companies that want to host their token sales or trading on the platform.