A startup raised $59 million in a token sale to usher in the next generation of crypto
Thomson Reuters
- Polymath, a blockchain company looking to revolutionize the crypto world, just raised $58 million in what it says is the first SEC-compliant token sale.
- The money was used to build a platform that would help companies create their own securitized tokens.
Polymath, a startup that wants to usher in a crypto revolution, has raised $58.7 million in a token sale, according to a filing with the Securities and Exchange Commission.
The token sale, which was open to accredited investors, was filed with the regulator as a private placement, a way for companies to raise capital from a select amount of investors, after the company raised the funds.
The money is going towards building Polymath's platform, which aims to allow financial-services companies to make and issue tokenized securities, according to a person familiar with the matter.
Currently, most tokens in the digital coin market are so-called utility tokens which provide holders access to certain services. The point of the Polymath platform is to make it easier for companies to issue digital securities to raise money in a compliant way.
"The technology serves as a launch pad or on-ramp for companies who want to create and issue tokenized securities, with the complex technical and legal functions of a token sale, Know Your Customer program, and development built in," a statement from the company said.
The fact that Polymath filed with the SEC as a private placement for its token sale is striking considering remarks Tuesday from SEC head Jay Clayton.
During a hearing on Capitol Hill Tuesday, Clayton said initial coin offerings should be filing under private placement rules. Here's Clayton:
"I'm unhappy about people conducting ICOs when they should be following private placement rules under our existing securities regulations. Distributed ledger technology has so much promise, as do pure cryptocurrencies, but I'm concerned about ICOs."
The funding mechanism, which is a darling of young tech companies, has helped some raise hundreds of millions of dollars, although not without controversy. Already, the SEC has halted a number of ICOs through its Cyber Unit for issuing securities to investors.
- Indian smartphone market up 8%, 5G smartphones account for over 70% of shipments
- Manchester United named world’s most valuable football club! MLS dominates top 50 list - the Messi effect?
- Rahul Dravid will have to reapply if he wants to continue as head coach after June: Jay Shah
- BPCL shares rally 5% after earnings announcement
- Markets bounce back in early trade on firm global trends; buying in ITC, Reliance
- Nothing Phone (2a) blue edition launched
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market