CapLinked, a secure information sharing company founded by PayPal’s first US head of marketing Eric M. Jackson, announced on Tuesday it has secured $2.5 million in seed funding for a new blockchain product, TransitNet, which will be used to serve Security Token Offerings (STOs). CapLinked’s financing was supported by Alphabit Fund, Translunar One, Kenetic Capital, NextProtocol Ventures, and BKCM.
The funds will be used to further develop TransitNet. The service will be accessible to issuers and token investors as well as service providers and financial institutions that will use it for accessing data on behalf of their clients. While sharing details about the blockchain product, Chris Grey, CapLinked COO, stated:
“The decentralization of security tokens creates unique challenges. TransitNet provides a secure platform for issuers and investors to review financial reports, track buy and sell activity, and confirm verification of ownership. All activity is written to the blockchain to create unalterable records.”
CapLinked CEO, Eric M. Jackson, also commented:
“The blockchain holds enormous potential for the issuance of securities. Tokenized securities provide improved transactional efficiency, increased liquidity, and greater financial inclusion than using pieces of paper to represent ownership in an asset. And with an ecosystem of issuance services, regulated exchanges, and transactional compliance tools coming online this year, we estimate the market cap of equity tokens alone could reach $1 trillion by 2020.”
Justin Schmidt, Founder of Translunar One, added:
“The Caplinked team is solving a very important piece of the STO ecosystem. I am super excited to be involved with one of the smartest, most dynamic teams in my 15 years of startup experience.”
