Acquiring shares in pre-IPO companies can make for a solid investment approach. However, doing so is often more complicated than it needs to be, yet Portal and HighCircleX aim to change that narrative. Soon, anyone can invest in SpaceX, Klarna, and Epic Games Store through a Bitcoin-based approach.
Democratizing Access To Pre-IPO Companies
Many people would like to invest some money in promising companies. Some of the biggest firms in the world have yet to go through an Initial Public Offering. The ability to acquire shares before an IPO is essential for those looking to make money. Unfortunately, the current infrastructure makes acquiring pre-IPO shares difficult without jumping through several hoops and dealing with significant limitations.
Today, those who can access shares of pre-IPO companies need to deal with unspecified periods for locking up money, a lack of liquidity, uncertainty about the actual value of holdings, etc. Those are all severe concerns when trying to make money as an investor. More transparent solutions are needed to address these issues. Additionally, access to pre-IPO company shares needs to be democratized.
One could always opt for intermediary solutions to access pre-IPO stocks. However, dealing with unnecessary intermediaries will further eat into a trader’s profit and add more constraints and uncertainty. A decentralized approach seems more favorable, so Portal and HighCircleX have partnered up. The joint effort democratizes access to pre-IPO company shares by tokenizing them on the Bitcoin blockchain.
The partnership is a crucial milestone for Portal. The cross-chain Layer-2 DEX network strives to bring more real-world use cases to the Bitcoin ecosystem. For example, tokenizing equity in pre-IPO companies solves the long-tail asset issue through enhanced liquidity. Additionally, it highlights the versatility of Bitcoin’s blockchain for various purposes.
Accessing Private Equity On Bitcoin
The venture into tokenizing pre-IPO companies on Bitcoin is the next step for the HighCircleX team. The project focuses on offering a blockchain-based asset marketplace. The partnership with Portal will provide access to pre-IPO stocks for SpaceX, Epic Games, Klarna, Automation Anywhere, and Cross River Bank. More companies will be tokenized in the future, depending on client demand.
All tokenized pre-IPO stocks will trade on HCX. Every investment is managed through an LLC, enabling investors to own tokens representing ownership of the LLC. Investors do not own shares of the underlying company but can use tokens for trading, access liquidity, fractional trading, and instant settlement. Additionally, token holders can cash out even before an investee company goes public or gets acquired.
HighCircleX CEO Hermanth Golla comments:
“HCX makes it a breeze for investors to invest in private equity offerings. It gives members instant access to fractional ownership of stocks in the hottest companies. We believe that tokenization and fast, easy tradability that come with it will unlock and expand this market tremendously.”
This partnership will allow accredited Portal users to access tokenized securities and non-security digital assets. Portal has built momentum by leveraging Bitcoin technology for building censorship-resistant communications, media, and one-click execution cross-chain swaps. The partnership with HighCirxleX brings more exposure to Portal and its DeFi solutions, which removes the need for minting wrapped tokens.
Source: https://crypto.news/portal-highcirclex-pre-ipo-equity-bitcoin-network/