In 2017, North Capital rolled out its transaction platform, TransactCloud, which enables the offering of exempt securities, including tokenized securities. North Capital Private Securities is a custodial broker/dealer that has focused on exempt securities since 2010 and will begin providing custody of securities tokens later this summer. The firm also has applied to become an ATS (an SEC-compliant Alternative Trading System), to facilitate secondary trading of securities tokens.
In an announcement made July 18, 2018, ConsenSys AG, a venture production studio building decentralized applications and various developer and end-user tools for blockchain ecosystems, said that it will make a strategic investment in North Capital Investment Technology, a market-leading provider of technology and brokerage services for exempt securities offerings, to accelerate the growth of its custodial platform and secondary trading infrastructure.
TOKENIZATION IMPACTING SECURITIES BUSINESS
“Tokenization will have a profound impact on the securities business,” said Joe Lubin, the Founder of ConsenSys. “North Capital shares our vision that tokenization can be used to increase access to capital, improve liquidity and market efficiency, and reduce transaction costs.”
“ConsenSys is an ideal partner for us,” said Jim Dowd, founder and CEO of North Capital. “They bring unparalleled technical expertise. We had been exchanging ideas on custody and secondary trading last year, and it became apparent that we have a shared vision and could accomplish much more through collaboration than by working separately.”
“One of the exciting things about advising on a transaction like this is the opportunity to introduce visionary leaders to each other, allowing them to build innovative products and programs together,” said Scott Daspin, Director of Institutional Sales at Triad Securities Corp, who advised on the transaction. “North Capital and ConsenSys are true standard-bearers in the industry, and I expect them to do great things together.”
COLLABORATION WILL BENEFIT SECONDARY TRADING
Dowd believes that secondary trading is an area that will especially benefit from the collaboration between ConsenSys and North Capital, “Many of the issues we are trying to address are timeless: How can we best bring liquidity into the market? How do we ensure fairness and transparency for market participants? How is the regulatory framework likely to evolve? There’s no single answer to these questions. We’re confident that our partnership with ConsenSys will lead to more thoughtful analysis, and therefore to better outcomes in these areas.”
ConsenSys is a venture production studio and custom software development consultancy building decentralized applications (DApps), enterprise solutions and developer tools for blockchain ecosystems, focused primarily on Ethereum. Powered by smart contracts and secured through encryption, their applications provide the benefits of transparency, auditability, and immutability that are unique to blockchain-based solutions. For more information, visit www.consensys.net.
ABOUT NORTH CAPITAL
North Capital provides comprehensive solutions to transact exempt token offerings, supporting ICO issuers and advisors, funding platforms, and other broker/dealers. Through North Capital Investment Technology and its registered broker/dealer North Capital Private Securities Corp., the firm also provides technology-enabled escrow, streamlined investor vetting (including KYC/AML and accredited investor verifications) and a wide range of other broker-dealer services. Firms interested in utilizing North Capital’s Transact Cloud can learn more by visiting, www.northcapital.com.