Tokenising IPOs is at the top of the agenda for a broker-dealer firm that wants to shake things up and give more people access to public offerings. By teaming up with the official underwriters, they’re hoping to come up with a way for crypto investors to get straight involved in the action — directly from their own wallets — and have it all be a completely legitimate and secure deal. This puts their strategy at odds with all those earlier attempts that just didn’t work out, and promises to usher in a whole new era of investment opportunity for everyone.<\/p>\n
The broker-dealer company is rolling into the market with learned from past mistakes in mind ,most notably the botched attempt to tokenize SpaceX’s IPO , which was supposed to give people access to IPO shares through tokens but ultimately fell flat as it didn’t play by the rules & therefore got shot down as being illegal because it circumvented official underwriters and regulatory hoops. According to the host of that popular podcast The Wolf of All Streets though , such missteps highlight just how crucial it is to work within the law to safeguard investors and keep the market from getting screwed . The company themselves are making the point that tokenizing IPOs cant be done without in on the action — ie legitimate underwriters — , otherwise theyd just repeat the same old mistakes.<\/p>\n
Operating both as an intermediary and a market maker, the company has a pretty unique position to spearhead the tokenization of IPOs — they can join up with syndicates to sell shares and also provide secure storage for token owners, all while making sure those tokenized shares meet the big financial regulations. It’s all designed to bring traditional investment techniques and blockchain tech together in a pretty seamless way. This dual role has been touted by some as being key to building a tokenized IPO market that’s trustworthy enough for investors — after all, it means they get the transparency and the liquidity that private share placements just can’t offer.<\/p>\n
The Companies end goal is to make it possible for real IPO’s to take place on blockchain platforms , and for investors to be able to use their crypto wallets to buy shares directly . The approach is similar to what Robinhood did 5 years ago when they made stock and ETFs available to the general retail investor — they simplified the process and knocked down some of the barriers that made it hard to get in . Tokenizing ETFs is still super wild west right now but the company ‘s people are confident that sooner rather than later there will be some clarity on this from regulators — and when that happens ..watch out as a huge new market opens up. By getting underwriters on board and tokenizing IPO’s, they think that eventually IPO’s will be more available to a wider audience.<\/p>\n
Source \u2014 The Wolf Of All Streets: https:\/\/www.youtube.com\/watch?v=Gmt8-4vZpi0<\/a><\/em><\/p>\n <\/p>\n