xodus, a Bitcoin wallet provider to Tokenize $75 Million in Company Stock on Algorand

Spread the love

 226 Interactions,  4 today

The business anticipates that EXIT tokens will be accessible for trade on a secondary market soon.

Exodus, a Bitcoin wallet provider, sold $75 million in common shares in the business earlier this year, which was exclusively available through its wallet. The sale was unique since the corporation only accepted Bitcoin, Ethereum, and the USDC stablecoin as payment for the shares. The SEC-approved share sale by Exodus was billed as the largest “regulated crypto public offering” ever.

Exodus claims it will soon convert those sold shares into tokens on the Algorand blockchain, where shareholders may claim them via the Exodus wallet. Securitize, a blockchain-based transfer agent, has collaborated with Exodus and Algorand to create the security tokens.

Exodus will be one of the few organisations to convert genuine shares into security tokens that can be exchanged on cryptocurrency exchanges.

Algorand is a proof-of-stake blockchain that aims to outperform Ethereum in terms of speed and scalability. It, like Ethereum, allows smart contracts, which are pieces of code that allow applications to be developed on top of a blockchain. Furthermore, tokens other than the native ALGO token can use the network. The Exodus common stock tokens, or EXIT, in this case.

RECOMMENDED READ:  Has the SEC taken on more than it can chew with the XRP lawsuit?

In a news statement, Exodus COO Sebastián Milla Goi stated, “This exciting partnership allows us to move closer to opening secondary trading in the near future.” In other words, the firm wants EXIT holders to be able to sell their shares in the firm through the use of blockchain technology.

It has chosen tZERO, Overstock.com’s digital securities department, as the venue. tZero now permits trading in its own tokenized shares, as well as those of retailer Overstock and luxury resort St. Regis Aspen.

Before EXIT becomes tradable, Exodus will most likely guarantee that its documentation is in line. While the public auction resembled an initial coin offering (ICO), the popular funding strategy for crypto companies in 2017, there were significant variations. First, the Securities and Exchange Commission of the United States authorised the Regulation A+ sale. Second, token holders are also stockholders, giving them a stake in the company’s legal ownership.

“Think of this as the 2021 version of an ICO—compliant, transparent, and offered by a profitable company with a working product,” Goñi told Decrypt in March. “What better loyalty token than equity?”

Leave a Reply

Contact Us