Liquidity is oxygen for a financial system.
Blockchain technology isn’t just a more efficient way to settle securities. It will fundamentally change market structures, and maybe even the architecture of the Internet itself.
The blockchain is the financial challenge of our time. It is going to change the way that our financial world operates.
Almost any illiquid asset today lends itself well to moving onto the blockchain and becoming tokenized. It will create a deeper market with improved price discovery and should increase the value of those assets.
An ICO is unique to cryptocurrency and occurs when a new currency is created by a company. The coin’s value is strictly determined by its ability to be circulated and relied upon as a currency. An STO represents ownership, or a stake, in a real company. Therefore, an STO is regulated by the SEC. An STO’s value is derived by the value of the company itself.
Liquidity refers to the state of an asset, and how quickly it can be transacted, specifically – turning an asset into cash. Whether you are an investor or an employee who holds shares of a company, you are awaiting the opportunity to turn those shares into cash. Typically for a private company, that opportunity isn’t realized until a company is sold, receives a new round of funding, or goes public (IPO). The holding period waiting for liquidity is typically 7-10 years. With LIQUIFI, any person who holds shares of a tokenized company, can offer those shares for sale through the company’s private market, so long as, the company has set the market conditions to allow trading.
Know Your Customer (KYC) and Anti-Money Laundering (AML) are policies and best practices that are applied in investment markets. Regulation and jurisdiction varies by industry and locales. KYC is designed to ensure that the customer is who they say they are. This helps control for identity theft and fraud. Similarly, AML policies are designed to ensure that money which is being put into a market, was obtained legally and handled in accordance with applicable laws and regulations.
New investments must be made through the company directly via a link placed somewhere for investors to access. Investors must register with the company and meet all of their investment requirements before a purchase can be made.
You are in complete control of who you invite to your private market or issue security tokens. Registered users on the LIQUIFI platform will not be able to see your market unless you directly invite them. The general public does not have access without an invitation.