BlocPal will Leverage Investor Onboarding, KYC/AML, Digital Transfer Agent, and Real-Time Cap Table Management Services from Securitize
Today, BlocPal International Inc has announced their selection of Securitize as the digital transfer agent and issuance and compliance platform for BlocPal’s 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.
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The integration to the Securitize platform is a key next step in BlocPal’s plan to facilitate regulated trading for BlocPal token holders, providing compliance, automation, and access to liquidity where possible. To achieve this, BlocPal will be introducing 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 will 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 applicable securities regulations and offer streamlined cap-table management.
Under securities laws and regulations, BPX and BPX-S tokens are subject to transfer restrictions. Thanks to Securitize, the BlocPal token-holders will be able to enjoy enhanced liquidity while maintaining compliance. The opportunity to convert to BPX-S tokens is expected to provide BlocPal token holders with increased liquidity on secondary trading platforms and exchanges which have also integrated with the Securitize Digital Securities Protocol.
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Carlos Domingo, CEO and Co-founder of Securitize, stated, “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. BlocPal is led by an experienced team that is bringing innovative fintech products to market, advancing digital engagement and financial inclusion.”
Since 2017, Securitize has been digitizing assets in order to eliminate many of the frictions that have long plagued the transfer of private and non-listed alternative assets, offering greater opportunity, efficiency, and liquidity to both investors and issuers.
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 process will be open to all existing and future BPX token holders. BlocPal will be announcing the mechanics of the conversion process on their website and encourages all interested parties to review the process and register to convert their tokens when timing for liquidity is appropriate for them. BPX tokens that are not converted will continue to receive equal value for distribution of the quarterly pre-tax royalty payments however will remain subject to the existing restrictions on transfer in order to comply with securities laws and regulations.
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