Traditionally most companies in the blockchain and cryptocurrency will lean towards using alternative methods for fundraising such as ICOs. KuCoin was one of the first companies in the blockchain space to raise a big round of funding ($20 mil USD) from VCs.
Abacus recently announced that they’ve successfully completed a round of fundraising from VCs for $2 mil USD.
Abacus is a brain child of Pradyuman Vig and Ian Macalinao developed to streamline the overall mechanism of tokenized securities. According to reports, it will help SEC and other auditing team to scrutinize the security by doing both – automating ‘the compliance for tokenized security transactions as well as to keep track of chain of custody of private securities’. Moreover, the founding team notes that it helps companies and traditional investors on the issuance of tokens to administration and settlement the tokenized securities on blockchain via smart contracts.
The company’s goal, ultimately, is to make it easier to buy and sell private securities, as well as to make the process far more transparent. If it works, it could be a big deal, too.
Right now, of course, the mere idea of a secondary market for tokenized securities feels like a very distant possibility, but that’s what the company wants to change.
It could be a painfully long period before that changes, but true believers in digital assets are covering their bases in the meantime, and betting on Abacus is seemingly one way to do that.
Some of the investors include Justin Kan, who committed $1mil to the funding. Justin Kan is the founder of Twitch.tv that was sold to Amazon.
Just when you thought its just an idea, Abacus actually secured a partnership with Coinbase.
Coinbase will be Abacus’ first exchange partner once it goes live with a new offering that will first be made to customers outside the U.S. that allows them to trade hundreds of tokens directly from their wallets. Sources reeported that Abacus also is working with a Chicago-based exchange called OpenFinance, which is about to begin trading its first security token. And Abacus has partnered with AirSwap, a New York-based peer-to-peer trading platform.
It’s still a very small operation. The two have just two other employees as of this writing. The founder insists that Abacus doesn’t need an army of engineers, though.
They’re already seeing some revenue, too, they say, including from SpaceFund, a new, Texas-based venture capital firm focused on using blockchain technology to fund “frontier enabling” space startups by selling its own security tokens to accredited investors to fund them. (The idea is that these same investors will be able to sell their SpaceFund tokens to other investors as their value rises.) As far out as it all sounds, SpaceFund is paying Abacus a subscription fee, after paying a set-up fee. And Vig expects such fees to add up over time as it attracts more customers, even if it’s too nascent to know what to charge just yet.
Of course, what it really depends on is whether and when enough startups and investors gravitate toward tokenized securities. If it happens sooner rather than later, Abacus will be ready and waiting.