The Bitcoin network lends itself to exploring various finance-related opportunities. HighCircleX and Portal join forces to tokenize shares in pre-IPO companies to the leading blockchain. A remarkable development illustrating Bitcoin’s versatility.
Another Showcase of Bitcoin Technology
It is interesting to see how Bitcoin technology impacts the real world. The world’s leading cryptocurrency continues to gauge attention, but one cannot overlook its underpinning blockchain either. Numerous innovative projects build on Bitcoin over Ethereum or Solana, as Bitcoin remains the most secure public blockchain. It has the highest hash power and computational security, making for an appealing layer to build applications, products, and services.
Portal, a cross-chain Layer-2 decentralized exchange network, is powered by Bitcoin technology. The team has entered a strategic partnership with HighCircleX, a blockchain-based asset marketplace. Together, the teams will initiate the tokenization of shares in pre-PO companies. Those shares will become more accessible due to residing on the blockchain and leveraging Bitcoin’s network security.
Portal Executive Chairman Dr. Chandra Duggirala adds:
“Portal is bringing real world use cases to Bitcoin. Eventually we will see tokenization of many more financial assets onto 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 for users who meet accreditation investor criteria marks the beginning of merging the Bitcoin ecosystem with mainstream finance. This also fixes the problem of liquidity fragmentation across many different exchanges and applications“.
Bitcoin enthusiasts have a growing demand for exposure to traditional stocks and public companies. The partnership between Portal and HighSocietyX enables users to access ownership interest in Klarna, SpaceX, Epic Games, Cross River Bank, and Automation Anywhere. More pre-IPO companies will be supported in the future, depending on consumer demand.
Addressing Key Issues Through New Approaches
Investing in a private market is appealing yet also comes with several drawbacks. Lingering uncertainty regarding time periods to lock up money, liquidity being insufficient, and remaining unsure of holdings’ true value are severe bottlenecks. Portal and HighCircleX eliminate these limitations through tokenization of private holdings. In addition, accredited Portal users can explore non-security digital assets and tokenized securities.
HighCircleX manages an LLC for every investment. Investors do not own shares of the company, but they own token tokens representing ownership of the LLC. Funds for each LLC are used to purchase pre-IPO investments, with tokens tradeable on the HCX marketplace. Furthermore, the team enables quick liquidity, fractional trading, and instant settlement.
The tokenization approach provides investors with seamless cashing out and trading of digital assets. Accessing liquidity is crucial in financial markets, as the overall momentum and sentiment are ever-changing. Having the option to cash out or trade tokens before an investee company goes public – or gets acquired – is crucial.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
This post was originally published here.