Blockchain startup 20|30 announced on Tuesday that it has successfully completed a test that saw it using blockchain technology to issue £3 million ($3.92 million) in equity via Turquoise – the London Stock Exchange’s equity trading platform.
Significantly, the company was able to raise the funds via ‘tokenised’ securities that were exchanged for ‘real’ cash.
Though it is not, comparatively speaking, a huge amount of money, it marks an important stepping stone in the move towards tokenized assets.
Converting assets and securities into tokens will, it is thought, make markets more liquid.
That is particularly the case amongst illiquid assets. Real estate, for instance, can be tokenized and traded – something that previously would have been near-impossible to do.
20|30 – heading towards private equity
Founded in 2016, 20|30 joined the Financial Conduct Authority’s regulatory sandbox last year.
Market Trading Ideas for May 10-14Go to article >>
Aimed at fostering innovation in the UK’s financial technology sector, the sandbox also allows participants to bring their product to market than would otherwise be possible.
Since its founding three years ago, 20|30 claims to have run four successful test runs of its technology.
And, after completing its equity sale on Turquoise, the company is going to be looking at breaking into the private equity sector.
More specifically, the firm says that it plans on working on the private equity secondary market.
Traditionally an illiquid market, 20|30 says that its technology can smoothen out trading in the market.
“[We want] to work our way up the ‘capital stack’ to reinvent private equity and, public markets,” said company co-founder Tomer Sofinzo.