The partnership between Vertalo and VerifyInvestor.com highlights:
(1) the importance of verified identity and qualified investors in the issuance and trading of SEC-compliant security tokens;
(2) the necessity that industry participants integrate in advance of the impending shift from a legacy database and paper-based securities to provable digital securities on the blockchain.
Vertalo helps buyers and sellers realize the promise of security tokens: enhanced liquidity for private assets where no liquidity existed before, smaller denominations that exist today, improved security features, complete trading and ownership audit trail and direct communications between issuers and owners. The Vertalo Registry manages Stakeholder registries for issuers and owners of compliant security token issuances.
“Without the establishment and real-time presentation of eligibility – in the form of KYC, AML and verifying accredited investor status – the security token promise falls apart. It’s integral that when the time comes to transact that buyers and sellers of security tokens are not frustrated by the inability of an exchange or ATS to qualify their eligibility to trade. Vertalo’s partnership with VerifyInvestor.com helps ensure that buyers and sellers own their eligibility and can transact without latency or unnecessary requalification. VerifyInvestor.com, a tZero subsidiary, will help us realize the security token promise of instantaneous eligibility and liquidity.”
Vertalo will add VerifyInvestor.com to its growing roster of pre-integrated partners and service providers so that Issuers and stakeholders who join the platform have access to the best security token technologies currently available. Broker-Dealers, Issuance Platforms, and Issuers who already work with VerifyInvestor.com will be able to onboard existing stakeholders and port over their eligibility data for use within the Vertalo platform. Broker-Dealers and Issuers that don’t have an existing accredited investor verification provider will be able to choose and integrate VerifyInvestor.com and its process with a simple click of a mouse right within the Vertalo interface.
“Securities have always required strong recordkeeping and compliance. Blockchain technology potentially shepherds in a heightened standard of reporting, accountability, and efficiency, but it requires tools such as those provided by Vertalo to realize its full potential. VerifyInvestor.com provides only a small piece of compliance but Vertalo combines our tech with its greater network to provide a rich compliance set.”