The private securities market is one of the last bastions in financial services to reach the digital frontier. This lag in innovation has caused investors, intermediaries, and entrepreneurs to accept the probability of missing opportunities due to inaccessible silos, high transaction costs, and operational challenges
Private securities are investable assets issued by a privately owned company in accordance with exemptions from the SEC’s registration requirements. Private securities allow private companies to raise capital from a limited number of accredited investors to start or grow their business. Although private securities are exempt from registration with the SEC, issuers of private securities are still subject to all of the anti-fraud provisions of the Securities Act of 1933.
I am excited to now share that IOI Capital and Markets, LLC. has become a registered broker-dealer with an Alternative Trading System (ATS) license. We are believed to be the first such broker-dealer in the U.S. to operate a blockchain-based platform for the digital issuance of private securities and secondary trading of private placement securities.
For private security investments to become a more transparent and utilized asset class, it has to be possible to access opportunities, manage them and, if necessary seek liquidity. This could be done on an exchange that supports multiple asset classes and allows for a diverse set of investors to transact with each other.