Today Globacap, the private markets workflow firm, announced a partnership with Tokeny. Tokeny is the APEX-backed tokenization firm that founded the ERC-3643 standard widely used for security tokens. While Tokeny offers a tokenization solution, the announcement focuses on Globacap’s integration with Tokeny’s DINO distribution network.
For Globacap, once it automates the workflow of a private issuance and tokenizes it, the issuer will want to ensure it has wide distribution. That contrasts with the fragmented silos often seen in the institutional DLT space. Hence, through the DINO network, Globacap can access many venues supporting the ERC-3643 standard.
Last year Myles Milston, the CEO of Globacap, wrote an opinion piece for Ledger Insights about his vision of tokenization in private markets. One of the points he highlighted is that most cryptocurrencies are bearer instruments, which contrasts with securities.
That’s where the ERC-3643 standard comes in. Many may be familiar Ethereum’s dominant ERC-20 token standard. ERC-3643 is compatible with ERC-20 but adds multiple layers of compliance. It restricts access to eligible investors. Plus, issuers or their agents retain control over the tokens despite investors holding them.
So far Globacap has provided the workflow for more than 150 private placements and helped digitize more than $20 billion in investment vehicles. Backers include Cboe Global Markets and the Johannesburg Stock Exchange (JSE).
“Despite the size and importance of private markets which have over $13 trillion AUM, for years they have lacked the infrastructure and transparency necessary for efficient transactions,” said Globacap’s Milston. “The combination of our offering with Tokeny is immense and will help to drive private markets innovation and growth forward.”
