CapLinked, a developer of proprietary information control software today informed that the company has achieved a notable funding milestone, raising $2.5 million for its blockchain product serving the emerging tokenized equity market, known as STOs (Security Token Offerings).
The seed funding will provide funds to develop TransitNet, a platform CapLinked is creating to provide security token issuers with post-issuance services and tools to manage reporting, governance and title verification.
Separately, the company also announced that David Madden has joined the TransitNet team as Chief Revenue Officer. Madden, who most recently ran the crypto fund services initiative at Trident Trust, brings over 20 years of experience in the financial services industry and will oversee the company’s New York City-based efforts.
Chris Grey, CapLinked COO, explains the forces driving the development of TransitNet, “The decentralization of security tokens creates unique challenges. TransitNet provides a secure platform for issuers and investors to review financial reports, track buy and sell activity, and confirm verification of ownership. All activity is written to the blockchain to create unalterable records.”
CapLinked’s financing was supported by leading crypto funds: Alphabit Fund, Translunar One, Kenetic Capital, NextProtocol Ventures, and BKCM. TransitNet’s service will be accessible to issuers and token investors as well as service providers and financial institutions that will use it for accessing data on behalf of their clients.
“The blockchain holds enormous potential for the issuance of securities. Tokenized securities provide improved transactional efficiency, increased liquidity, and greater financial inclusion than using pieces of paper to represent ownership in an asset. And with an ecosystem of issuance services, regulated exchanges, and transactional compliance tools coming online this year, we estimate the market cap of equity tokens alone could reach $1 trillion by 2020.”
This new financial infrastructure benefits from CapLinked’s core competencies of security, tracking, and governance. One of CapLinked’s lead investors, Justin Schmidt, Founder of Translunar One, agrees. “The CapLinked team is solving a very important piece of the STO ecosystem. I am super excited to be involved with one of the smartest, most dynamic teams in my 15 years of startup experience,” Schmidt says.