Financial technology firm Raise has launched the alpha version of its security token platform.
The platform which was built with a view to tokenize Africa, will officially become the first security token to be developed and launched in the continent.
From the press statment released by the firm, Raise is a software-as-a-service (SaaS) tool built for funds, law firms and companies to securely digitise partnership units, share certificates, and real estate assets.
In addition, the platform will be able to develop customised digital securities that can be programmed with key performance indicators, custom data and limited partnership or shareholder information.
This was made known by CEO Marvin H. Coleby and CTO Eugene Mutai, the co-founders of Raise.
While speaking at the annual Africa Tech Summit that was held in Kigali, Rwanda, Coleby, who is also a serial entrepreneur and securities lawyer from the Bahamas, talked about the potential for more accessible and liquid private markets : “Today, it’s difficult to move shares between funds and companies. Navigating regulatory requirements, tracking securities ownership and raising financing can be difficult. We have to check and verify a multitude of complex requirements and documents to move assets that many of us already own. This makes private markets expensive and slow to operate – it can take weeks to transfer shares between consenting parties. As a result, private markets are not nearly as liquid as public markets, immobilizing assets and restricting financial inclusion. Blockchain technologies can encode compliance requirements and ease document processes that make private markets difficult to navigate.”
“We’re excited to contribute to a global movement to simplify private markets and securities innovation with this new product and look forward to further development updates this year. This is especially true on the African continent, we strongly believe that fluid and efficient capital markets can create enormous wealth for millions of people and transform intra-African trade,” he added.
Raise is working with a list of companies, law firms and private funds to officially launch its platform later in 2019, with its primary focus on the private capital markets sector.
Raise has so far partnered with Africa Legal Network, an association of 16 corporate law firms to work out modalities of setting up a continental regulatory framework for security tokens. The partnership led to the launch of the African Digital Asset Framework, which is an open-source project designed to create standards for blockchain technologies.