Frequently Asked Questions
No. Deal Box works with Broker-Dealers to assist their clients with the resources they need to succeed.
Blockchain is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system. Blockchain provides a digital ledger of transactions that are duplicated and distributed across the entire network of computer systems.
A digital security is a type of standard security ⏤ like equity or bonds ⏤ issued digitally. The purpose of a digital security is to take advantage of the efficiencies offered by a blockchain virtual ledger system to store and validate transactions.
The process of converting physical, real-world assets into a token or digital asset. A token or digital asset is a digital representation of an asset that exists on the blockchain.
Not at all. Digital securities are regulated by the SEC, FINRA, and state securities regulators. They are backed by assets or companies. Cryptocurrency is an alternative means of transferring monetary value similar to government-backed money.
Many companies and their investors do not have confidence in the accuracy of their cap table and recorded positions, respectively. Digital securities solve for these uncertainties. When purchasing digital securities, both the issuer of the securities and the investor are granted real-time access to view the securities; on the cap table for the issuer and in the investment account at Deal Box for the investor. This eliminates questions as to ownership, in addition to realizing significant efficiency in the transaction cycle.
Another function is their ability to trade in new age liquidity venues, such as SEC Regulated Alternative Trading Systems (ATS). Deal Box's capital advisory and Vertalo's technology products are able to take advantage of those capabilities to assist your firm in staying ahead of other private companies when figuring out how to access liquidity for shareholders. Additionally, digital securities cut out the “middle man” that current securities have by allowing investors to directly trade with one another.
No. Deal Box offers services for both digital and traditional private securities. The decision to create a digital security is up to the issuer. There is also the option of partially tokenize your offering.
Your digital security will be stored in a Vertalo keyless wallet. This function allows investors to easily sign in with their email and password so that they don’t have to worry about losing their “keys”. This ensures that an investor can never lose their ownership of a digital security unlike cryptocurrencies.
Vertalo connects and enables the digital security ecosystem by utilizing blockchain technology to bring cap tables and investor management into the 21st century. Vertalo’s system stores digital securities and their platform makes blockchain easy for investors. They provide keyless wallets and KYC/AML for all investors, and their on-chain secured cap tables give companies and investors more power and flexibility in managing assets. To learn more about Vertalo, please visit their website here.
Alternative trading system is a US regulatory term for a non-exchange trading venue that matches buyers and sellers to find counterparties for transactions. Alternative trading systems are typically regulated as broker-dealers rather than as exchanges. An ATS must be approved by the SEC and is an alternative to a traditional stock exchange.
Digital assets are traded on an SEC approved ATS. Utilizing Vertalos' digital transfer agent license, issuers can list and sell their equity securities, debt offerings and real estate on the ATS to accredited investors, banks and broker dealers. Once listed and traded on an ATS, issuers receive zero time settlement, eliminating the traditional t+2 settlement timelines and receiving their funds immediately into their account.
Trading digital assets creates liquidity for private securities that traditionally have acted as illiquid assets by reaching thousands of accredited investors on a secure, regulated marketplace. ATS's remove the burden for investors and issuers to find a counter-party to acquire and trade private securities, while providing real time transactions and settlement.
The SEC provides the framework and regulates all ATSs.
- An ATS is permitted to operate if it meets the definition of a national exchange.
- An ATS under the Exchange Act Rule 3a1-1(a) is exempted from registering as an exchange.
- ATSs are required to comply with Rules 300-303 of Regulation ATS.
- An ATS must report its books and records.
- ATS is not considered a national exchange but must be registered and approved by the SEC.
tZERO and Texture Capital
It takes approximately 4 months to get listed and begin trading on an ATS. Once listed on the ATS your shares trade immediately.
Check out the Deal Box pricing page for information about cost savings.
No. As the issuer, you may set the requirements for who is allowed to trade your digital securities.
All trades will be cleared within 24 hours. (Within Business Hours)