Coinbase Joins $5M Funding Round for Digital Transfer Agent Vertalo

The four-year-old company helps to digitize assets from real estate to equity in the form of security tokens using blockchain.

AccessTimeIconMay 19, 2021 at 7:01 p.m. UTC
Updated Sep 14, 2021 at 12:58 p.m. UTC

Vertalo, an Austin, Texas-based start-up that helps issue and manage digital securities, has raised $5 million in funding from investors including U.S. cryptocurrency exchange Coinbase.

The Series A funding round closed May 13 and also included participation from the Tezos Foundation, Wedbush Capital and others, according to Vertalo CEO Dave Hendricks.

The four-year-old company helps to digitize assets from real estate to equity in the form of security tokens, using distributed ledger technology – relying primarily on the Tezos and Ethereum blockchains.

“In 2020 we started licensing the platform to broker dealers, capital providers, funds and multi-asset issuers so they can issue security tokens and onboard investors at scale,” Hendricks told CoinDesk in an interview.

Vertalo booked $1.5 million of revenue in the first quarter of 2021, Hendricks said.

One of the company's primary offerings is blockchain-based capitalization table management, using ledgers to keep track of the owners of shares and assets along with relevant information such as amounts, prices paid, purchase dates and options. The system allows ownership records to be updated in real time when trades are settled via smart contracts. It aims to reduce the errors and complexity involved in managing traditional cap tables, which are often manually updated on spreadsheets.

Vertalo is registered with the U.S. Securities and Exchange Commission as a transfer agent, according to its website, which means it works with issuers to compile and maintain records of security ownership, distribute dividends and facilitate transactions.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

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.

Trending

1
CoinDesk - Unknown
Three Arrows Paper Trail Leads to Trading Desk Obscured Via Offshore Entities

As Three Arrows Capital collapsed under market pressure, its much-lesser known trading desk, TPS Capital, remained active, sources say. But a complex ownership structure might frustrate creditors' efforts to collect.

CoinDesk - Unknown
2
CoinDesk - Unknown
June Was Bitcoin’s Worst Month Ever

Plus, European crypto regulation comes into view.

CoinDesk - Unknown
3
CoinDesk - Unknown
What Traders Are Saying About Bitcoin's Biggest Monthly Loss in 11 Years

Poor macroeconomic sentiment, fears of inflation and systemic risks from the crypto market pushed the cryptocurrency below 2017’s highs.

CoinDesk - Unknown
4
CoinDesk - Unknown
Three Arrows Capital Files for Bankruptcy in New York Tied to British Virgin Islands Proceeding

A British Virgin Islands court ordered Three Arrows' BVI branch into liquidation earlier this week.

CoinDesk - Unknown