Vancouver-based Finhaven has officially launched its equity and debt issuance platform on the heels of $1.3 million in seed funding from Korean venture capital and private equity firm Medici Investments.
The company says it relies on its proprietary coding and smart contracts to ensure that the creation, sale, and future resale of these security tokens will all be in compliance with applicable securities laws. The platform is top of the Ethereum blockchain for the issuance of security tokens, secure portfolio wallets, and an audit layer providing a log of transactions.
Finhaven enables the creation of a unique token for each issuer. The Bitcoin blockchain powers Finhaven’s remittance layer, where investors accumulate Bitcoin as the return from their investments.
“I believe Finhaven is well positioned to disrupt capital markets with their blockchain-based platform,” said Jinhwan Bae, CEO of Medici Investments. “I also believe in the leadership team, who’ve proven their ability to deliver results over the course of our relationship.”
Finhaven says that tokenized equity and bonds provide businesses with access to new markets.
Two companies are already offering tokenized bond issuances, and are collectively raising approximately $19.5 million CAD. These companies include Kenya-based 4G Capital, which is powering businesses in Africa with micro-lending and business training. The Finhaven platform will allow the startup to participate in issuance using cryptocurrencies.
Vancouver-based TIMIA Capital, which provides revenue financing to SaaS companies in exchange for payments based on revenue, is partnering with Finhaven to provide a establish a cryptocurrency-based investment platform. TIMIA hopes to improve its collection of routine performance data from its portfolio investments, and create new financing products leveraging Finhaven’s blockchain-powered issuance system.
“Security tokens represent the future of the capital markets, allowing companies to issue their own equity and debt tokens makes it possible for capital to flow more efficiently in global capital markets,” said Finhaven CEO DH Kim.
The company says that tokenized equity and bonds provide businesses with access to new markets, asset liquidity, programmable assets, secure and immutable data, and auditable trails of ownership.
“By reducing transaction costs, converging intermediaries, and increasing speed of clearing and settlement, blockchain technology promotes much needed efficiency within capital markets. We are already experiencing a significant shift towards tokenized assets, a trend we expect will grow exponentially in 2018.”
Finhaven is developing a blockchain-based securities exchange, and is working with securities regulators to secure the necessary approvals. Once approved, the company will work as an end-to-end solution for issuing, investing in, and trading regulatory compliant security tokens.
Photo via Burst