SharesPost, a provider of liquidity solutions to the private growth asset class, today announced that CityBlock Capital will conduct its initial digital security token sale on the SharesPost platform. CityBlock also selected the SharesPost platform to provide secondary liquidity for its tokens. CityBlock’s digital tokens will represent ownership interests in the fund.
CityBlock’s NYCQ Blockchain Infrastructure Fund is a venture capital fund exclusively devoted to investing in companies building blockchain based capital markets infrastructure. Portfolio companies are using blockchain technology to instantly settle trades, eliminate intermediaries, and reduce fraud.
The fund’s portfolio companies will include clearinghouses, exchanges, depositories, makers of market aggregation tools, securities services firms, data analytics, smart contract auditors, and issuance platforms. The NYCQ Fund will not invest in cryptocurrencies or utility tokens. It will invest 90% of its capital in early-stage firms, with the remainder in late-stage companies. After the initial sale of tokens and expiration of applicable holding periods, investors will be able to buy and sell these assets on SharesPost’s Alternative Trading System (ATS).
The SharesPost marketplace connects more than 50,000 institutional and individual accredited investors around the world with companies seeking to raise capital. SharesPost also provides investors with the ability to safely custody their digital securities and conduct compliant trades on the ATS, which is registered with the U.S. Securities and Exchange Commission.
“The NYCQ Fund is intended to provide accredited investors with diversified access to blockchain infrastructure investments normally accessible only by institutional investors. CityBlock Capital believes that blockchain technology will deliver a much-needed modernization of the current financial system. SharesPost’s blockchain expertise, world-class technology platform, and global visibility and reach made it an obvious choice for CityBlock Capital.”
“We are very pleased to have been selected by CityBlock. We see a great opportunity for the investors in our marketplace to participate in this next wave of disruption and innovation in the financial services industry. We are also excited to be at the forefront of tokenizing traditional assets like venture capital funds. We will continue to provide token issuers with a complete capital markets solution that includes primary issuance, secondary trading, and the investor relations tools to tell their story to the investment community.”
CityBlock Capital is the second digital security issuer to have selected SharesPost in the past month. In January, Blockchain Capital, another venture capital firm focused on blockchain technology companies, began trading its security tokens on the SharesPost platform.