20|30 accepted to FCA regulatory sandbox with first platform to test primary issuance of equity tokens
- 20|30, a UK company building a blockchain-based platform for corporate equity issuance, has been accepted to Cohort 4 of the Financial Conduct Authority’s regulatory sandbox
- 20|30 will test primary distribution and custody capability using London Stock Exchange Group’s Turquoise and Nivaura platforms
- The 20|30 platform offers benefits of simplicity and ease of use to both institutional and individual investors
- The 20|30 equity platform aims to give start-ups and other companies a more streamlined and cost-effective way to access equity investors
20|30, a London start-up using blockchain technology to enable companies to raise capital by issuing equity tokens, today announces its inclusion in the latest cohort of the Financial Conduct Authority’s (“FCA”) regulatory sandbox (see FCA sandbox webpage).
20|30 will now begin testing its platform, which enables the primary issuance of equity tokens using the Ethereum blockchain. The test will be conducted using Nivaura’s integration with the London Stock Exchange Group’s (“LSEG”) Turquoise platform.
The test will enable the primary issuance of equity tokens to institutional investors through a regulated trading venue and aims to demonstrate a commercially viable model for tokenising company equity. 20|30’s overall goal is to establish equity tokens as a widely accepted means for companies to raise capital.
20|30’s investment platform creates a compliant, easy, safe, and transparent process for approved investors to purchase equity tokens. For companies seeking equity investors, the platform should increase access to capital from larger investors.
The test will allow investors on the LSEG’s Turquoise platform to place orders for equity tokens and matched orders will be cleared and settled on the blockchain using Nivaura’s custody services. The equity token is a standard ERC20 with an intrinsic structure that enables compliance with key regulatory requirements, for example, investor whitelists.
“We are delighted to be included in the latest cohort of the FCA’s regulatory sandbox,” said 20|30 founder David Siegel. “This is a significant milestone for the 20|30 team. For the first time, our integration with the Turquoise platform will demonstrate a regulatory-compliant way for institutional investors to purchase equity tokens. We believe this is an important first step to building a new digital foundation for capital markets.”
As opposed to ICOs, equity tokens are fully regulated and represent shares of stock in a company. The 20|30 platform will be fully compliant with UK regulations and will provide all necessary checks on investors and issuers.“The next step,” said co-founder Tomer Sofinzon, “will be to offer secondary transfers. Then we can work our way up the ‘capital stack’ to reinvent private equity and, eventually, public markets.”
The 20|30 platform is a partnership with the Pillar Project, a non-profit foundation building a next-generation wallet for cryptocurrencies and tokens. 20|30 aims to be the regulated entity licensed to on-board companies to issue equity tokens. The wallet has many other markets, including utility ICOs, e-commerce, and crypto-trading.
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