F10 will issue its shares on the SDX platform. The shares will be tokenized, the share registry service is provided by Aequitec, a Swiss company that assists firms in transitioning to the digital space.
The benefits of tokenized stocks are liquidity and efficiency. The number of traders/investors may be greater in a digital environment. Orly Grinfeld, the EVP/Head of Clearing at Tel Aviv Stock Exchange, said recently that Israel is exploring the tokenization of stocks.
Blockchain technology can significantly enhance traditional financial services.
Massimo Butti, the Head of Equity at SDX, said: “An ecosystem that supports private companies in their funding journey and reduces the complexities and inefficiencies of issuing private equity can only be achieved through collaboration: with existing and new players, by leveraging existing processes, and by creating new technical standards.
"The issuance of F10 shares on SDX is the result of the cooperation with different market actors. It provides a scalable blueprint for other issuers and participants to issue digitized shares and affirms that our private issuance market is open for business.”
Higher ESG Ratings
Christian Wilk, the CEO of Aequitec, added: “With bankable shares, our customers’ shareholders can safely store their private equity shares in bank custody.
"Moreover, with the help of Aequitec’s interactive workflows for capital increases and annual shareholder meetings, F10 as equity issuer can further streamline the processes and strengthen corporate governance practices, resulting in higher ESG ratings and better access to equity funding."
Jonathan Seiler, the CFO and Senior Investment Manager at F10, noted: “Beyond the clear advantages of managing our share registry and all related processes fully digitally at F10, we believe strongly in the power of collaboration to advance the financial industry.
"That's why we are incredibly excited to be the first issuer of shares for this new innovative offer by our partner SDX and F10 alumni Aequitec."
