DeFi partnership aims to tokenize shares of pre-IPO companies

Decentralized finance (DeFi) protocol Portal has partnered using the asset marketplace HighCircleX (HCX) to tokenize stocks of pre-dpo (IPO) companies, based on a comment distributed to Cointelegraph on Monday. 

The collaboration aims to create purchasing private equity finance simpler because they build on the top from the Bitcoin (BTC) blockchain. Through this, HighCircleX is searching to resolve problems like the insufficient liquidity and cost uncertainty for traditional assets.

Based on the announcement, HCX can create and run a llc (LLC) for that investments. As the investors won’t own the shares from the LLC, they’ll own tokens that “represent possession” from the LLC. Such tokens could be traded around the HCX marketplace.

In addition, the funds acquired through the LLC will be employed to buy a pre-IPO investment. The pre-IPO companies that may be tokenized and traded include SpaceX, Epic Games, Klarna, Automation Anywhere and Mix River Bank.

Chandra Duggirala, Portal’s executive chairman, described the partnership aims to create more utility to BTC. He stated that:

“Portal is getting real-world use cases to Bitcoin. Eventually, we will have the tokenization of numerous more financial assets to the Bitcoin blockchain.”

Furthermore, Duggirala described that although the assets aren’t the same as BTC, simplifying the interface for traditional assets starts the “start of merging the Bitcoin ecosystem with mainstream finance.”

Related: Texas-based Bitcoin mining operator files for $60M IPO

This past year, crypto platform Coinbase grew to become the very first company to visit public within the U . s . States. However, according to market trends, owning BTC is presently much better than owning Coinbase stock (Gold coin) by 20%.

Meanwhile, crypto block explorer and exchange is exploring the way the company can do an IPO in 2022. When the firm succeeds in performing an IPO, the firm would be the second exchange within the U . s . States to get this done, following Coinbase.

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