A new blockchain start-up named 20|30 is formed to tokenize securities and equities on behalf of their clients. It will be conducting one of the UK’s first ever equity-token issuing too. The company accepted by FCA has raised £1 million in seed capital.
The new company has also successfully raised £3 million by selling tokenized shares on the London Stock Exchange Group (LSEG) managed platform. Though the efforts were taken to use the tokenized form of equity to modernize the financial market s of the traditional economic structure, the share offering was done with the involvement of real-world cash (fiat money), and it was issued on the London Stock Exchange Group‘s Turquoise platform which is an equity trading platform. The aim of the platform is to use tokenize equity and other securities with the help of decentralized technology.
The company uses decentralized ledger technology. 20|30 was also a part of cohort 4. It is a regulatory structure where companies can try innovations and products in a controlled system with real customers.
As the news media reported, London Stock Exchange Group and the Financial Conduct Authority earlier said that they were working with the company named 20|30 along with one more distributed ledger technology startup named Nivaura. The aim, as mentioned by these authorities is to show (for the first time) that equity and other securities in U.K. companies can be tokenized. And not just that, they can be issued within the payment system which is custody and security compliant.
The news of raising $3.9 Million on London Stock Exchange shows that the first stage of that plan is successfully passed. In the words of London Stock Exchange Group, “tools to help companies raise capital in a more efficient and streamlined way.”
The co-founder of 23|30 said that after primarily issuing an Ethereum based equity token is successfully done, “the next step will be to offer secondary transfers. Then we can work our way up the ‘capital stack’ to reinvent private equity and, public markets.”
The CEO of Nivaura said Dr. Avtar Sehra said that one can use the technology developed by the company to take care of all the legal documentation; one can tokenize these assets and execute them too. London Stock Exchange is taking enough efforts to make this possible and allow the public to use these facilities as soon as possible.