Cantor Fitzgerald and Securitize announced a collaboration plan to introduce block chains and monetization infrastructure into the first public collection (IPO) and subsequent financing processes. Two companies stated that this would help listed companies to complete a chain of fund-raising and securities issues within the existing capital market system.
Division of labour covers distribution and transactions
According to both parties, Cantor will provide equity capital markets and trading capacity, while Securitize will be responsible for the monetization infrastructure for the issuance, distribution and follow-up of tokenized securities.
The focus of this cooperation is not on monetization funds or secondary market transactions, but rather on extending the chain infrastructure directly to the first level of the market, such as IPO and growth. Securitize suggests that enterprises should not be forced to choose between traditional capital market channels and block chain technologies.
Apply scene to fund-raising
Two companies indicated that chain-based distribution could increase operational efficiency and update the management of security ownership records while still operating within the traditional public distribution framework. This means that chain-based technology will move more into the front-end financing processes of the enterprise.
Unlike earlier more focused monetization funds or trade flows, this cooperation has moved the use of monetized securities to new equity issues and follow-up financing, covering more central elements of capital formation.
Traditional financial institutions continue to add names
In the recent past, many traditional financial institutions are accelerating the monetization of capital markets. Earlier this week, DTCC announced further plans for the monetization of shares, with Morgan Chase, Goldman Sachs, Belet and Vanguard as partners.
According to Cantor and Securitize, chain settlement, distribution and holding records management are expected to become part of the securities issuance process as the monetization gradually moves into the mainstream capital market. If this model goes forward smoothly, the application of chain securities may continue to expand to business fundraising.