Portal, the Bitcoin-built cross-chain Layer-2 DEX network, has announced via a press release that it will be collaborating with High Circle Ventures’ blockchain-based asset marketplace HighCircleX to facilitate pre-IPO companies to tokenize shares on the Bitcoin blockchain.
The collaboration presents a first of its kind opportunity for pre-IPO companies to tokenize equity in private and create the provision of liquidity to illiquid assets. Further, companies will continue to benefit from the “many layers of application” that Portal envisions to build on the Bitcoin blockchain.
Some of the most-desired pre-IPO companies including Klarna, SpaceX, Automation Anywhere, Epic Games, and Cross River Bank will allow for their ownership interest to be tokenised and traded under the collaboration, the press release stated.
The partnership is a crucial breakthrough in achieving Portal’s vision of incorporating real-world use cases to Bitcoin
Portal’s Executive Chairman Dr. Chandra Duggirala explained the importance of the partnership by stating that the company will make way for the tokenization of many more financial assets to the blockchain:
“Although these assets are not bearer assets like Bitcoin, having both digital asset securities and non-security digital assets available through a simple interface for users who meet accreditation investor criteria marks the beginning of merging Bitcoin ecosystem with mainstream finance.”
This will further fix the problem of liquidity fragmentation across many different exchanges and applications, he added.
Hemanth Golla, the CEO of HighcircleX, commented on the partnership by saying:
“HCX makes it a breeze for investors to invest in private equity offerings. It gives members instant access to fractional ownership of stocks in the hottest companies. We believe that tokenization and fast, easy tradability that come with it will unlock and expand this market tremendously.
For Portal users, the partnership brings in seamless access to both tokenized securities and non-security digital assets from one wallet. On the other hand, for HCX, the partnership will allow the elimination of limitations such as illiquidity, lock-in periods and value uncertainty that are inherent in private markets and increase the available investor base.