CINCINNATI, OH – 10XTS, a leader in blockchain-based asset management solutions, is breaking new ground with its initiative to tokenize company shares as blockchain-based assets. By leveraging recent changes in Delaware corporate law, which now permits corporations to issue shares as digital tokens and maintain corporate records on blockchain, 10XTS is positioning itself at the forefront of modern corporate governance, setting an example for businesses looking to adopt blockchain as a tool for equity management.
Under this new approach, each 10XTS share will correspond to a blockchain token, issued to shareholders in line with existing shareholder agreements. The tokenization of shares aims to simplify cap table management, enhance transaction efficiency, and eventually facilitate secondary market trading. This pioneering move showcases 10XTS’s flagship product, XDEX, a blockchain-based platform designed to streamline asset management and position early-stage companies to take advantage of the future of tokenized assets.
“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, CEO of 10XTS. “It will make cap table management easier and enable future transactions between parties for further issuance and eventually secondary market trading.”
The tokenization initiative reflects a broader mission at 10XTS: to set a blueprint for other early-stage companies seeking innovative solutions for equity management. By building a streamlined, blockchain-based approach, 10XTS hopes to provide a foundation for new levels of liquidity, transparency, and accessibility in the investment landscape, empowering early-stage businesses to offer shareholders greater flexibility and control over their equity.
XDEX and the Vision for Liquid, Tradable Alternative Assets
The tokenized equity model is central to the launch of XDEX, 10XTS’s cutting-edge product focused on digital asset management. As regulatory environments evolve, 10XTS aims to position XDEX as a trusted platform where companies and investors can efficiently manage, trade, and engage with tokenized assets. Although today’s regulations have not yet fully embraced secondary market trading of company equity shares on blockchain, 10XTS believes this is only a matter of time.
“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,” Hiles continued. “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.”
As alternative assets and early-stage investments evolve, liquidity has become a pressing concern. Traditional early-stage investors often find themselves restricted by long holding periods and delayed IPO timelines. Tokenized assets can help address these issues by offering a flexible trading solution that brings liquidity closer to that of publicly traded assets. With tokenized shares, investors may one day have a secure, accessible option for trading assets in alternative markets.
“If given the choice, investors will want that liquidity option, which will lower the risk over current early-stage holding periods,” Hiles added. “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.”
10XTS’s vision extends beyond company equity tokenization, with future plans to explore other tokenized asset classes that address transparency, access, and security in investment processes.
