Crypto enthusiasts and investors alike will now be able to purchase tokenized shares in pre-IPO companies, thanks to a new partnership between Portal and HighCircleX.
Portal, a Layer 2 decentralized exchange network, has just announced a collaboration with HighCircleX, a blockchain-based asset market. According to the press release shared with CoinText, the partnership will result in tokenized shares being made available on the Bitcoin blockchain.
These latest developments are a big step forward for Portal in its mission to provide real-world use cases for Bitcoin. Dr. Chandra Duggirala, the CEO of Portal, was enthusiastic about the move; “We will see many more financial assets tokenized on the Bitcoin blockchain. Although these assets are not bearer assets like Bitcoin, having both digital asset securities and non-security digital assets available through a simple interface to users who meet investor accreditation criteria marks the beginning of the ecosystem fusion of Bitcoin with conventional finance. This also fixes the problem of liquidity fragmentation across many different exchanges and applications.”
HighCircleX is committed to removing the obstacles investors face when investing in private markets. These include illiquidity, lengthy holding periods and uncertainty over real value. Hemanth Golla, the CEO of HighCircleX, commented; “HCX makes it very easy for investors to invest in private equity offerings. It gives members instant access to fractional ownership of shares in the most popular companies. We believe that tokenization and the quick and easy tradability that comes with it will unlock and expand this market tremendously.”
With the partnership, Portal users will have access to tokenized securities and the ability to trade all types of digital assets from one wallet. Those wary of tokenized shares being traded on their behalf to acquire securities can rest easy; HighCircleX has established and manages an LLC to receive each investment. Investors don’t hold shares in the underlying business, but tokens representing ownership of the LLC.