Templum Raises $2.7 Million in Bid to Launch Regulated Token Trading System

New York-based blockchain startup Templum has raised $2.7 million in a new seed funding round.

The round was led by Raptor Group, Galaxy Investment Partners, Blockchain Capital and firstminute.capital, the startup said in a statement. Raptor Group, founded by billionaire businessman Jim Pallotta, has invested in major firms such as Uber, as well as blockchain industry startups like Paxos, among others.

As previously reported by CoinDesk, Templum (along with its affiliate broker-dealer Liquid M Capital) is seeking to launch a platform for the trading of blockchain-based tokens that are considered securities.

Utilizing a so-called alternative trading system (ATS) that is subject to regulation from agencies like the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), the startup is hoping to develop both primary and secondary markets around such tokens.

“ICOs offer innovative organizations an efficient alternative for raising capital. However, ICOs in their current form can be highly risky for issuers and investors. Templum will provide the necessary transparency, accountability and investor protection to reduce risks and encourage more widespread acceptance of ICOs,” Chris Pallotta, Templum’s founder and chief executive officer, said in a statement.

Templum, along with firms like Overstock’s tØ, are pushing to tap into the interest surrounding the blockchain funding model, through which the sale of cryptographic tokens can be used to bootstrap new projects. Effectively, the firms hope regulated trading systems will attract more seasoned stakeholders to a market that has, to date, seen more than $2 billion raised, according to CoinDesk data.

Disclosure: CoinDesk is a subsidiary of Digital Currency Group, which has an ownership stake in Paxos.

Coins in a jar image via Shutterstock