KoreConX’s newly launched blockchain-based platform for digital securities will also connect to private capital markets. The platform will allow securitized token issuance, trading, clearing, and settlement. KoreConX platform hosts over 90,000 companies, who have raised more than $6.6 billion.
Private capital markets consist of companies that are too small to be listed on stock exchanges, start-ups, or firms. Venture capital investors and mutual funds generally participate in capital markets, and they are considered extremely risky. Unlike stock exchanges, private capital markets have a low volume of transactions, are volatile, require a lot of paperwork, and are still vague as there are no set standards and norms which companies must follow.
KoreConX wants to streamline the private capital markets so that more firms are attracted to them. Its blockchain will help all stakeholders in capital markets in complying with securities regulations and corporate law.
KoreConX platform will allow all sizes of companies to access investors. It is very important for capital markets.
Oscar Jofre, CEO and Co-founder of KoreConX, said,
For private capital markets to be as efficient, as public listed markets, it needs an infrastructure layer and an application layer. KoreConX brings both.
KoreConX recognizes that data integrity and lack of knowledge regarding regional jurisdictional compliance keeps the public away from small firms listed in private capital markets. Small firms and start-ups don’t have resources to invest in exploring laws governing different regions and how to tailor their approach to comply with those laws. KoreConX blockchain-based platform will solve these problems also as standards for documentation will be set to address regional jurisdictional issues.
Thus, KoreConX will allow smaller firms and start-ups in capital markets to approach investors; it will also help them clean up their act as far as making their documentation compliant with regulatory framework goes. Thus, investors will be able to trust the documentation presented to them.