Blockchain services firm AlphaPoint has upgraded its tech solution for security token offerings (STOs) in a bid to attract institutional clients.
Revealing the news exclusively to CoinDesk on Thursday, AlphaPoint said with its upgraded technology stack, financial institutions such as private equity, real estate firms and funds can issue asset-backed security tokens, thereby increasing liquidity in the market.
The firm further said that it is evolving its Asset Digitization software in a bid to help clients create, issue and trade tokenized securities in a “secure and private” manner.
AlphaPoint CEO Salil Donde said the “enterprise-grade” software enables institutions to tokenize illiquid assets and trade such assets on an exchange or licensed platform.
Donde added:
“We are enabling our customers to forge ahead with institutional adoption of security tokens as a means to streamline issuance, reduce deal costs via smart contracts, and optimize deal execution with the flexibility of the immutable ledger provided by STOs.”
AlphaPoint also named two clients that are already using its technology solutions: Muirfield Investment Partners, a private equity real estate investment firm, and Laureate Digital Securities, a blockchain-based asset management firm.
Muirfield has been using AlphaPoint’s Regulated Asset-Backed Token (RABT) framework since last May, in an effort to offer its investors an easier way to participate in the property market. Laureate, on the other hand, has been utilizing AlphaPoint’s Asset Digitization solution since last November, to develop and manage security token offerings and token trading on the secondary market.
“Asset Digitization [helps Laureate] replace the laborious, paper-based subscription process with online portals and electronic compliance checks, reducing customer onboarding time to minutes instead of days,” AlphaPoint said.
Security tokens are increasingly being adopted by the capital markets industry, Donde said, adding: “Blockchain technology provides new tools to drive transparency and trust between investors and [security token] issuers.”
AlphaPoint is backed by Mike Novogratz’s Galaxy Digital, which took part in a $15 million round back in June.
The company has also seen notable hires recently. Scott Grayson, former chief sales officer at enterprise blockchain startup R3, joined the firm in January as a senior vice president for institutional sales. And, in November, Cboe Global Markets’ head of equity options, Kapil Rathi, joined the firm as global head of trading markets.
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