For decades, issuing and administering private and non-listed, public securities has been a manual, paper-intensive and inefficient process. With the Openfinance platform for digital securities, sponsors and issuers can benefit from reduced costs, a more efficient secondary market, and improved valuations.
The presence of an efficient liquid secondary marketplace helps ensure your private company is valued more accurately.
Reach Broader Capital Markets
Raise capital from a larger set of global investors while providing optionality, not redemptions
Lower Capital Costs
Retain more equity while raising more capital through the promise of secondary market liquidity.
Reduce Administrative Costs
Openfinance is built on distributed ledger technology to eliminate the need for costly third-party intermediaries.
A Commitment to Compliance
Baked-in KYC/AML standards ensure only approved, qualified investors participate in the market.
Openfinance partners with the industry’s top issuance platforms to match you with the best fit for your listing.
Listing on Openfinance
Before listing your asset with Openfinance, you should work with legal counsel to determine your corporate and offering structure and prepare offering documents. Once complete, you will submit your documentation for review as part of our due diligence process.
Sale + Issuance
During your capital raise and issuance, Openfinance works with you and your chosen smart contract developer to ensure all compatibility and compliance standards have been met. When all requirements are in place, the digital securities are issued to qualified investors.
Upon initial distribution, the digital security is now eligible to list on Openfinance. Our AML/ KYC and accreditation reviews ensure your security only transfers between eligible parties when traded on our secondary market platform.
How is my cap table managed in a digital security offering?
One of the key benefits of a digital security offering is the real-time, immutable record of ownership. Issuers and regulators alike can view transfer history at any time for an up-to-the-second snapshot of ownership. Issuance platforms that create the smart contracts often serve as digital registrars to help manage cap tables.
What is a lockup period?
The SEC considers many private offerings to be restricted securities. Restricted securities often require investors in the initial offering to hold the security for a certain period of time. Please consult your legal counsel for mandatory holding periods by offering type.
Can non-U.S. investors trade on the platform?
Yes, Openfinance is available to both U.S. and non-U.S. investors. The type of security offering will dictate who can and cannot own the security at a given time. Smart contracts and Openfinance technology enforce these regulations automatically with every asset.