Under FCA’s sandbox supervision, the innovative startup issues world’s first equity-security token using its blockchain platform.
After successfully being selected as one of the 29 firms to be included in the FCA’s fourth cohort of the regulatory sandbox, Globacap issues the world's first blockchain token to form legal shareholding. This is following its close on an $800k seed funding round back in June where the objective was to be the first global equity-issuer using blockchain technology.
With ambitions of transforming the financial services sector by improving security and accessibility, Globacap is hoping to digitalise the methods of raising capital and managing assets.
The fintech start-up focuses on SMEs raising capital using the method of tokenisation. This process involves using transferable tokens as a representation of equity ownership. Previously, illiquid transactions would take several weeks to process but can now be completed within seconds.
Using its blockchain platform, Globacap creates the public token under the supervision of the FCA as a part of the sandbox cohort 4. The purpose of this token not only represents the ownership of equity, but is also used to facilitate future transactions. Said transactions will get recorded on the underlying blockchain of the token, allowing “securitisation” for most asset classes according to the company.
The CEO of Globacap, Myles Milston, is calling this a “milestone for the securities industry” and says it is giving an opportunity for “private companies of all sizes to have access to a wider pool of global capital”.