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Vertalo and EarlyIQ partner to improve investor eligibility for security tokens

Vertalo and EarlyIQ partner to improve investor eligibility for security tokens

Vertalo, a stakeholder registry platform for compliant security token offerings and EarlyIQ, a provider of simple, secure online diligence and compliance solutions for private financial markets today announced a formal integration partnership.

The partnership will enable security token buyers and sellers to own their Accreditation, KYC (know your customer), and AML (anti-money laundering) results in order provide real-time accreditation and eligibility information and to facilitate mainstream adoption of security token investments and equity.

“Security tokens will revolutionize finance in many ways, including by bringing liquidity to privately held assets. So it’s important that buyers and sellers can prove ownership and eligibility to engage in real time trading on exchanges. Vertalo’s Registry platform is designed to reduce latency in the buying and selling of tokenized assets by management of perpetual KYC, investor verification and immutable asset ownership on the blockchain.”

“In order for buyers and sellers to take advantage of the killer app for security tokens — liquidity — it is critical that buyers and sellers can prove their eligibility to buy and sell their security token holdings without any administrative delays caused by inefficient offline eligibility checks. Vertalo’s integration and partnership with EarlyIQ will help issuers compress the time from an investor commitment to funding while reducing secondary sale and purchase latency by decentralizing the ownership of investor verification and KYC data from 3rd party platforms to the end users, who own and benefit most from the use of their data.”

Vertalo’s Co-founder and CEO Dave Hendricks

On the Vertalo platform, individual eligibility results and status of accredited investors (SEC-defined) are placed on the blockchain, where issuers and exchanges can access and instantly qualify buyers and sellers. Vertalo extends beyond secondary and exchange sales. Today, issuers incur costs and delayed/oversubscribed offerings while potential buyers await word whether they have been approved to buy and issue. Issuers often have to raise 150% of their goal in order to compensate for interest from ineligible buyers.

“Our partnership with Vertalo will solve the problems of efficiency, cost, and delays that can prevent security tokens from fulfilling their promise to bring liquidity to asset sales. By allowing parties to maintain evergreen accredited investor status via a subscription model — and sharing that status on the blockchain with all stakeholders — more transactions will be processed faster and at lower cost with fewer dropouts. We believe that people should own their data and EarlyIQ’s partnership with Vertalo helps us to realize that goal.”

David Trissel, President and CTO of EarlyIQ

The Vertalo platform is operating in a closed beta now with expected public availability in Q4 2018. EarlyIQ and Vertalo expect to release their jointly-managed subscription service in Q3 to select partners and broker-dealers.


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