What’s Going On?
A US company has had its paper shares converted to crypto tokens, in a move that could revolutionise the global IPO landscape.
Why Does It Matter?
Morgan Creek Capital Management’s blockchain division converted shares of US-based cloud storage firm Anexio, reported Fortune. The two companies hope to raise $40 million by offering equity to accredited investors in the form of Ethereum-based tokens.
What Problems Does This Fix?
A blockchain is perfect for this new approach to investment as it manages not only the equity, but also transactions that take place using that equity, said Morgan Creek Partner Anthony Pompliano in an interview with Cheddar. “We actually think that the regulators, at some point in the future, are going to mandate that every company in the world tokenises their equity.”
Morgan Creek is currently working to tokenise other assets and while details have not yet been made clear, outside analysts said assets including artwork, wine, and real estate can be tokenised.
“Morgan Creek is focused on tokenisation because that’s where we believe there is less hype and more sustainable value being created,” said Pompliano. “Our plan is to tokenise the world. Every single asset is going to go onto the blockchain. Once all assets are tokenised, then we believe the entire financial system will be more efficient and compliant.”
Pompliano was previously managing partner with Full Tilt Capital, acquired by Morgan Creek in March this year. Morgan Creek plans to raise as much as $500 million in a new blockchain-focused fund, reported Bloomberg.