New Custody Solution for Cash and Exempt Securities Reduces Transaction Costs and Shortens the Settlement Cycle for Private Placements

New Custody Solution for Cash and Exempt Securities Reduces Transaction Costs and Shortens the Settlement Cycle for Private Placements

North Capital Investment Technology (“NCIT”), a market-leading provider of technology services for exempt securities offerings, announced the launch of a new custody solution for funding platforms and introducing brokers. This new service will enable the creation and funding of specialized brokerage accounts at North Capital Private Securities (“NCPS”), a wholly-owned subsidiary of NCIT, to hold cash and unregistered securities that have been issued in exempt offerings.  NCPS was approved as a self-clearing broker-dealer in late 2016 by the Financial Industry Regulatory Authority (FINRA), the self-regulatory authority for registered Broker-Dealers.  North Capital Private Securities is an SEC-registered broker-dealer, member FINRA and SIPC.

“Today, the settlement process can take as long as 30 days, and issuers and brokers have to chase investors for funding once they have committed to a deal.  It’s a significant burden for both platforms and investors,” said Sara Borazan, Director of Business Development of North Capital. “We have taken feedback from our clients to craft a solution that will address this pain point, while increasing transparency for investors.”

CASH CUSTODY SERVICES IN BETA LAUNCH NOW, EXEMPT SECURITIES TO FOLLOW LATER THIS YEAR

The firm invited strategic partners to participate in the November 1st beta launch of cash custody services at the inaugural North Capital Partner Summit, held in Salt Lake City on September 26th. Custody for exempt securities is expected to roll out later this year.

“Inconsistencies in disparate processes can cause a true operational drain,” said Lawrence Fassler, corporate counsel at RealtyShares, Inc., a real estate investment platform that gives investors direct access to investment opportunities and real estate operators the ability to raise capital. “This solution has the potential for our firm to bring escrow, brokerage and custody of exempt securities into a single, seamless technology platform that is compliant.”

Since its inception, North Capital has strategically added capabilities that address the consecutive stages in the life-cycle of exempt securities, beginning with brokerage and transaction services.  The firm added AIP processing in 2013 and escrow services in 2016. Earlier this year, NCIT received a strategic investment from ConsenSys, AG, a venture production studio building decentralized applications and various developer and end-user tools for blockchain ecosystems, to accelerate the growth of its custody platform and secondary trading infrastructure.

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. Funding platforms interested North Capital services can email Sara Borazan at sborazan@northcapital.com.  For more information, visit www.NorthCapital.com.

 

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