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CityBlock Capital to Hold Security Token Sale and Trading on the SharesPost Platform
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SharesPost, a secondary market for private tech companies and their security token offerings, has now announced the second digital issuer on their platform for 2019. CityBlock Capital will tokenize ownership of its fund and offer them in an STO on SharesPost.
One of the areas where tokenization of securities is most likely is with existing portfolio companies. For example, SPiCE Venture Capital and tZERO are some of the most popular ones which have been making the news as of late. Capital management firms are realizing they can achieve more liquidity and accessibility to their financial investment investments if they tokenize their funds.
CityBlock Capital will be holding an STO for its NYCQ Blockchain Infrastructure Fund to be traded on the SharesPost platform, a new announcement just revealed. The NYCQ Fund does not invest in cryptocurrencies; instead, it invests 90 percent of its capital in early-stage blockchain projects. CityBlock Capital will be tokenizing the fund and token holders will be paid out dividends.
Utilizing the SharesPost Platform
Although the SharesPost Platform has been flying under the radar for some of the tokenized security space, more companies are coming around to utilizing it. SharesPost’s Alternative Trading System (ATS) will support CityBlock’s security token and its trading. The system currently connects some 50,000 institutional and individually-accredited investors.
Rob Nance, Co-Founder of CityBlock Capital, commented on the deal saying:
“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.”
However, CityBlock Capital is not the first blockchain company to announce they would be issuing their token on the SharesPost Platform. Blockchain Capital, another portfolio, also announced in January they would be doing similarly.
About SharesPost
SharesPost launched in 2009 as an online secondary market but has quickly made itself one of the few trading platforms for security token issuers out today. They have over $5 billion in secondary market transactions, representing shares of over 250 companies. SharesPost is a FINRA-registered broker-dealer and their Alternative Trading System (ATS) is SEC-registered.
Have you heard of SharesPost before? Will they have their role in the growing security token space? Let us know your thoughts in the comments.
Images courtesy of SharesPost and CityBlock Capital.
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Tim Fries
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
