10XTS is in the process of tokenizing it’s shares of the company as blockchain-based assets. As an example to the business market, the company is leveraging the recent Delaware corporate law which permits a corporation to issue shares as tokens and keep company information on a blockchain.
Each share will be correlated to a blockchain token, which will be issued to each shareholder governed by the shareholder agreements.
“We expect this model to become commonplace in the future, and we’re blazing the trail as an example of a blockchain company,” said Michael Hiles, 10XTS CEO, “It will make cap table management easier and enable future transactions between parties for further issuance and eventually secondary market trading.”
The project is a test to establish a model for execution for other early stage companies as part of the launch of 10XTS’s flagship product, XDEX.
Hiles says, “While the technology has surpassed the regulatory environment’s ability to conduct efficient secondary market transactions for company equity shares, we expect this to change in the future. Investors will eventually prefer the ease of trading and liquidity for alternative asset classes, and we expect to see pressure on traditional early stage companies to provide this in the future.”
“If given the choice, investors will want that liquidity option, which will lower the risk over current early stage holding periods,” Hiles continued,”You see the early stage investors being hamstrung over the delayed IPOs and lack of ability to take their money off the table when they’re ready. We aim to change that. We want to make buying and trading in alternative assets as easy as a public stock investment trading account platform is today,”
For more information about asset tokenization, contact 10XTS to discuss your project.