Vertalo and DealBox join hands to tokenize securities of more than 20 companies on Tezos blockchain. This partnership is expected to count some $200 million in deals.
In an important announcement, Vertalo CEO and co-founder Dave Hendricks highlighted that Vertalo is going to tokenize 22 different securities issued by DealBox’s clients, providing them data management services and liquidity.Both Vertalo and DealBox have agreed on a deal. According to which, Vertalo will facilitate clients of DealBox in tokenizing their securities on Tezos blockchain.
Vertalo is a registered transfer agent with the Securities and Exchange Commission (SEC). It will provide essential technology for digital security issuance to the clients of DealBox.
DealBox is a fintech merchant bank. It is the actual intermediary between the clients and the tech firm, Vertalo.Dave Hendricks said that Vertalo Company prefers to work with “channel partners.”
The move will potentially increase the customers of Vertalo. The company had 18 customers as of January 2020 for digital security issuance. It is expected that this number would be doubled after joining DealBox and preferring Tezos Blockchain.
Tokenizing might also be able to boost liquidity. This was expected by Hendricks who added that “The private assets are a bigger market than public securities. Because of the antiquated methods for asset management, and for ownership of private assets, owners of private assets cannot obtain liquidity.”
Tezos Blockchain: An Emerging Choice of Digital Community
About a month ago, for issuing securities, Vertalo formally shifted to the Tezos network as its default blockchain. It encouraged its customers to switch to the Tezos Blockchain when possible. Earlier, the company was supporting securities issued on both Tezos and Ethereum.
A similar trend is seen in DealBox. Although DealBox previously issued two securities on the stellar blockchain, it is hoping to potentially migrate to Tezos.
We’re going to be bringing a significant amount of capital to the Tezos platform,
John Nance, DealBox’s president and chief investment officer said.
John Nance further hoped for positive gains out of the emerging partnership. He highlighted that the partnership would help build out the market infrastructure for digital investments and would revolutionize digital investments.
This idea of crowdfunding and using online investment platforms is pretty new,
Nance said, adding that more established companies might not have the necessary plumbing to support these types of securities issuance.