The Equibit Development Corp. (EDC), which is building a block-chain-based securities register that manages OTC equity and offers the ability to use BTC-denominated dividends and distributions, is offering an investment opportunity. Toronto, Canada-based EDC plans to bring 1 million units of equity online and is offering investors an opportunity to purchase up to 200,000 preferred shares for 0.50 apiece USD and redeem them for an equivalent number of the pre-mined units.
Chris Horlacher, Equibit CEO, believes the block-chain-based securities register will revolutionize OTC trading, CCN.com reported in August.
“Much is being said today about applying block chain technology to the securities industry,” said Horlacher in announcing the new investment opportunity. “We’ve been preparing this system for several years and are confident our solution provides issuers and investors all the tools they need to manage their relationship in a completely decentralized and secure manner.”
EDC noted in a press release the tasks are presently performed by securities depositories and transfer agents like New York City-based Depository Trust & Clearing Corp. (DTCC) and Computershare and by securities depositories. DTCC processed more than $1.6 quadrillion in transactions in 2014, Equibit stated in its press release. DTCC, combined with Computershare, posted revenues of more than $3.5 billion in 2014.
This, according to Equibit, represents a significant cost to the investing public, issuers and brokers. There are more than 130 transfer agents in North America alone, according to the Securities Transfer Association.
EDC is building several applications, one that targets the “mining” community in order to create the Equibit Network itself. Other applications will target issuers and investors that will interface with the Equibit Network. There will also be applications targeting other block chain networks in order to complete the user experience. The final product will include earnings distributions, a shareholder communications system, smart transactions, proxy voting and more.
When the Equibit Network comes online, 1 million units (the “pre-mine”) will be released into the control of EDC. Similar to bitcoin, the network will then generate more units, eventually reaching the 21-million-unit maximum. The units can then be made into an equity representation by an issuing company, traded, divided, recycled and re-used.
Because there is a limited amount of units, they will carry a value whether or not they are being used as equity by a company since they first must be obtained by an issuer that wants to use the system.
Also read: NASDAQ launches linq, a private blockchain-powered trading platform
Under the newly-announced offering, accredited investors can purchase up to 200,000 preferred shares for USD $0.50 each, then redeem them for an equivalent number of the pre-mined units. The funds will be used to hasten development and market the solution.
For more information, including a white paper outlining the Equibit Network, visit equibit.org.
Images from Shutterstock and Equibit.
Last modified: March 4, 2021 4:46 PM