Portal, a Bitcoin-based cross-chain Layer-2 DEX network, and HighCircleX have partnered to help tokenize shares in pre-IPO companies on the Bitcoin blockchain, CryptoAdvisor learned from a press release.
A milestone in bringing real-world utility to Bitcoin
This partnership is another milestone for Portal, who’s on a mission to bring real-world use cases to the flagship crypto’s blockchain.
HighCircleX is a blockchain-based platform to create private equity investments and enable trading without friction, an asset marketplace by High Circle Ventures.
Tokenizing equity in private, pre-IPO companies will help bring liquidity to illiquid assets.
Among the companies, whose shares are subject to tokenization and trade are SpaceX, Klarna, Epic Games, Automation Anywhere, and Cross River Bank. These are some of the finest and most appealing pre-IPO companies in the world.
Portal’s Executive Chairman Dr. Chandra Duggirala commented:
Portal is bringing real world use cases to Bitcoin. Eventually we will see tokenization of many more financial assets onto the Bitcoin blockchain. Although these assets are not bearer assets like Bitcoin, having both digital asset securities and non-security digital assets available through a simple interface for users who meet accreditation investor criteria marks the beginning of merging Bitcoin ecosystem with mainstream finance. This also fixes the problem of liquidity fragmentation across many different exchanges and applications.
Overcoming market limitations
Investments in private markets still face major obstacles. Apart from lack of liquidity, these include unspecified time periods when money is locked up and lack of clarity on the true value of holdings among other things.
HighCircleX and Portal will tokenize private holdings, thereby eliminating many of the current limitations.
Hemanth Golla, HighCircleX CEO, added:
HCX makes it a breeze for investors to invest in private equity offerings. It gives members instant access to fractional ownership of stocks in the hottest companies. We believe that tokenization and fast, easy tradability that come with it will unlock and expand this market tremendously.
Cash out or trade tokens at any time
With HighCircleX’s product, investors don’t have direct ownership of shares of the underlying company. They own tokens that represent ownership.
They can trade or cash these out and avail of the liquidity at any time, including prior to the company’s undergoing a public listing or an acquisition.
Portal users can now trade non-security digital assets and have seamless access to tokenized securities, both from a single wallet.