BlocPal Takes Critical Step to Facilitate Regulated Trading

BlocPal Takes Critical Step to Facilitate Regulated Trading

By Capital Markets CIO Outlook | Monday, November 23, 2020

The integration to the Securitize platform is a critical next step in BlocPal's strategy to facilitate regulated trading for BlocPal token holders, offering compliance, automation, and access to liquidity where possible.

FREMONT, CA: BlocPal has chosen Securitize as the digital transfer agent and issuance and compliance platform for its BPX token. BPX will be the first mineable security token that will provide token-holders a quarterly royalty payment based on BlocPal's pre-tax profits.

The integration to the Securitize platform is a critical next step in BlocPal's strategy to facilitate regulated trading for BlocPal token holders, offering compliance, automation, and access to liquidity where possible. To this end, BlocPal will launch a new BlocPal token on Securitize's Ethereum-based blockchain solution that incorporates Securitize's advanced management and security functions.

Moving forward, as native BPX tokens are mined on the BlocPal blockchain, users would be able to convert them directly to the Ethereum-based BPX-S tokens within the BlocPal wallet and Securitize platform. BlocPal will leverage the advanced KYC functionalities of Securitize's Digital Securities Protocol to ensure compliance with relevant securities regulations and provide streamlined cap-table management.

The BPX and BPX-S tokens are subject to transfer restrictions under the securities laws and regulations. Thanks to Securitize, BlocPal token holders will be able to enjoy enhanced liquidity while maintaining compliance. The ability to convert BPX-S tokens is expected to provide BlocPal token holders with increased liquidity on secondary trading platforms and exchanges that have already been incorporated with the Securitize Digital Securities Protocol.

Carlos Domingo, CEO and Co-founder of Securitize, said, "We are very pleased to have been selected as the digital transfer agent for BlocPal's security token and to provide the company with our issuance and management technology."

Since 2017, Securitize has been digitizing assets to remove many of the frictions that have long plagued the movement of private and non-listed alternative assets, providing both investors and issuers with better opportunities, performance, and liquidity.

Nick Mellios, founder and CEO of BlocPal, explained, "Successfully navigating the complex regulatory environment concerning security tokens is crucial to achieving liquidity for our token holders. That's why we are thrilled to be using Securitize, a company that is a true market leader in the space. We believe this integration will open more opportunities for our token holders to trade on regulated marketplaces and exchanges while providing a superior investor experience."

The conversion phase will be available to all current and potential holders of BPX tokens. BlocPal will announce the mechanics of the conversion process on its website and encourage all interested parties to review the process and register to convert their tokens when the timing for liquidity is appropriate for them. BPX tokens that are not converted will continue receiving equal value for the distribution of the quarterly pre-tax royalty payments however will remain subject to the existing restrictions on transfer to comply with securities laws and regulations.

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