SharesPost, a private company liquidity solutions and private capital markets research provider, announced on Tuesday CityBlock Capital is set to conduct its initial digital security token sale on its platform. SharesPost also reported it was selected by CityBlock to provide secondary liquidity for its tokens as well.
According to SharesPost, CityBlock’s NYCQ Blockchain Infrastructure Fund is a venture capital fund exclusively devoted to investing in companies building blockchain based capital markets infrastructure. Portfolio companies are using blockchain technology to instantly settle trades, eliminate intermediaries, and reduce fraud. CityBlock’s digital tokens will notably represent ownership interests in the fund. After the initial sale of tokens and expiration of applicable holding periods, investors will be able to buy and sell these assets on SharesPost’s Alternative Trading System (ATS). Rob Nance, Co-Founder and Managing Partner of CityBlock Capital, stated:
“The NYCQ Fund is intended to provide accredited investors with diversified access to blockchain infrastructure investments normally accessible only by institutional investors. CityBlock Capital believes that blockchain technology will deliver a much-needed modernization of the current financial system. SharesPost’s blockchain expertise, world-class technology platform, and global visibility and reach made it an obvious choice for CityBlock Capital.”
Greg Brogger, SharesPost Founder and CEO, then commented:
“We are very pleased to have been selected by CityBlock. We see a great opportunity for the investors in our marketplace to participate in this next wave of disruption and innovation in the financial services industry. We are also excited to be at the forefront of tokenizing traditional assets like venture capital funds. We will continue to provide token issuers with a complete capital markets solution that includes primary issuance, secondary trading, and the investor relations tools to tell their story to the investment community.”
CityBlock Capital is the second digital security issuer to have selected SharesPost’s platform within the past month. As previously reported, SharesPost Alternative Trading System executed a secondary transaction in the “BCAP” security tokens issued by Blockchain Capital, the pioneer and premier venture capital firm focused exclusively on the blockchain technology sector.