Tokensoft Distributes $4 Million in Equity to Investors on the Blockchain
San Francisco 20 May 2020 – Tokensoft Inc. (Tokensoft), a leading technology platform for enterprises, asset managers and financial institutions, today announced that it has become one of the first companies to tokenize its equity after using the blockchain to distribute the investments to investors that participated in its $4 Million Series Seed round. The investment round which commenced in July of 2018, was co-led by Base10 and e.ventures with participation from Coinbase Ventures.
“While many in the industry speak of the benefits of digitizing private capital markets, Tokensoft has actually done this with their own shares.” said investor Meltem Demirors, who has been working with the team since 2018. “I have the ability to hold shares in my wallet, receive dividends, bid or offer shares, and gather real-time market data that facilitates price discovery.”
Tokensoft investors have received a digital representation of their SAFE-governed investment on the blockchain in their investment accounts, powered by the Tokensoft technology platform. The digital representation has been developed using the ERC-1404 standard and uses the Ethereum blockchain for compliance and accounting automation to ensure all aspects of each investor’s SAFE agreement are enforced on the blockchain. Investors in Tokensoft equity will now or soon have the benefit of:
Real-time, authenticated access to ownership information with provenance of transactions recorded on the Ethereum blockchain.
Real-time, periodic dividend payments in US dollars through an integration with Signet, Signature Bank’s blockchain-based payments platform, and Tokensoft subsidiary DTAC LLC., an SEC registered transfer agent.
When activated, shareholders will have secondary market access to buy or sell shares using their Tokensoft investment accounts and our partner broker-dealer, Tritaurian Capital.
“We have proven with our customers that the blockchain can streamline and automate secondary transfers, we’re excited to finally be able to use the same great technology our real estate and institutional customers have been using.” said Mason Borda CEO of Tokensoft Inc.
The company plans to expand into secondary markets for other notable venture-backed firms in the industry and create a more robust, active market for investors and entrepreneurs alike.
According to Preqin, the size of the secondary market for private capital was $85 billion in 2019, and continues to grow. In this economic climate, Tokensoft hopes to facilitate secondary transactions in both venture deals and funds themselves as well as create a more transparent market for these transactions.
Tokensoft is actively seeking to work with companies and asset managers to build an active marketplace and to collaborate with broker dealers who specialize in these offerings.
Tokensoft is a leading technology platform for blockchain-enabled securities based in San Francisco, CA. The Tokensoft platform enables forward-thinking enterprises, asset managers, and financial institutions to fundraise, manage investors, and access secondary market liquidity using the blockchain. The Tokensoft platform has processed investors in over 50 countries and investments totaling over half a billion USD.