North Capital, a provider of technology and brokerage services for exempt securities offerings, is now offering a utility token (a.k.a., an AI token), that can be used by accredited investors to confirm their verified accredited status to invest in exempt offerings under Regulation D, 506(c) of the Securities Act of 1933.
Developed on the Ethereum blockchain, the AI tokens are available free to investors via North Capitals’s Accredited.am Platform.
“The AI token is the first of four utility tokens that will extend the reach of our market-leading TransactCloud technology platform,” said Jim Dowd, founder and managing director of North Capital. “There is a clear need for tools to facilitate Know Your Client (KYC), Anti Money Laundering (AML), suitability scoring, and accredited investor verification in the crypto securities market.”
The AI Token is an ERC-20 smart contract developed on the Ethereum blockchain, which will be offered by the group’s broker/dealer affiliate, North Capital Private Securities Corp., to individuals and entities who have been verified as accredited investors. AI tokens will be issued with an automatic expiry date, to comply with the SEC’s safe harbor regarding the timeliness of third-party verification.
North Capital is providing a free token verification tool to issuers to validate the authenticity of the AITs.
“Because AITs will be issued to a specific investor’s wallet and can be viewed directly in the Ethereum blockchain, rather than in a side-chain or off-chain system, issuers or token platforms can embed automated AI verification directly into their ERC-20 crypto securities,” said Dowd.
INSTITUTIONS CAN VERIFY ACCREDITED STATUS
According to Anton Prakash, North Capital’s Chief Technology Officer, deploying accredited verification credentials via an Ethereum smart contract was a logical extension of the firm’s existing technology stack.
“We have been focused on expanding the exempt securities business since 2011, and our API functions and related services have enabled over 30,000 transHuactions. The use of blockchain technology allows for an API-less integration, which will be useful for many of our existing customers and should open entirely new markets.”
Institutions wishing to utilize AI tokens to verify investors’ accredited status, or to integrate accreditation verification under an OEM arrangement, may integrate through North Capital’s enterprise platform, TransactCloud (https://www.northcapital.com/transactcloud/).
ABOUT NORTH CAPITAL
North Capital Investment Technology and its registered broker/dealer North Capital Private Securities Corp. provide comprehensive solutions to transact exempt token offerings, supporting ICO issuers and platforms, through its TransactCloud platform. For more information, visit www.NorthCapital.com.