Transfer Agent Vertalo Chooses Tezos Over Ethereum for Security Token Development
The digital security issuer says it chose Tezos because it is faster than ethereum, ideal for security tokens and is proof-of-stake.
Transfer agent Vertalo wants its customers to issue securities on the Tezos blockchain.
The company has made Tezos its default blockchain, encouraging customers to switch over from ethereum. It has developed the ability to convert ERC-20 tokens to Tezos-formatted smart contracts, though it will still support ethereum.
“We think that that covers 99 percent of the security token and smart contract landscape for equity and debt,” said Dave Hendricks, CEO of Austin, Texas-based Vertalo.
With 18 customers on its platform currently, Vertalo issues digital securities and manages data for the broker-dealers, issuers, custodians and exchanges it connects. It also manages cap tables for startups and allows them to tokenize shares with the company’s REG D V-token.
The company has chosen Tezos because its smart contract abilities are available in multiple programming languages, Hendricks said. He also cited Tezos’ rate of transactions per second, stable network of participants and the collateralization opportunities offered by being a proof-of-stake network.
“A real estate fund managed via a Tezos security token could simultaneously pay out a staking-based dividend next to an asset-secured dividend as is traditionally paid in investments like real estate investment trusts, an area that is a key focus for Vertalo and other security token platforms around the world,” Hendricks said.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.