Blackmoon, a company that tokenises traditional investment vehicles, has revealed a US market venture in an effort to bridge the gap between digital and traditional investing.
In June, the firm announced that it would tokenise the Xiaomi IPO. Interestingly, this was even before the Chinese phonemaker made good on its intention to go public in Hong Kong.
Basically, the Blackmoon Platform offers solutions for asset managers and for investors. On the one hand, it enables the asset managers to create and manage tokenized funds. This is to say that the asset managers can buy assets like stock or any other real assets which they can then tokenize. Simply, tokenizing an asset refers to offering the asset in a digital form so that crypto investors can buy them.
On the other hand, investors can use the Blackmoon Platform to invest in cryptocurrency tokens based on traditional assets. In particular, these are traditional assets which asset managers turn into cryptocurrency tokens.
Global Banking and Finance Review explains the tokenisation process:
“In a token sale, cryptocurrencies contributed by an investor are converted to fiat and transferred by the Token Issuer to the Broker, who in turn, applies for a share allocation. Once the lockup period ends, the Broker sells the shares at the market price. The proceeds are then transferred to the Token Issuer, who converts the fiat currency to ETH and redeems the tokens of the token holders in ETH.”
Investors to access a variety of strategies as Blackmoon reveals US market venture
Interestingly, as Blackmoon reveals its US market venture, it intends to offer clients access to six cryptocurrency strategies. In particular, the strategies will enable accredited investors to access high-risk high-return assets in the US market.
The company details that the strategies will rely on proprietary-designed algorithms. This means that investors need use little effort, if any, to monitor the performance of their investments. Further, the company will use the Prime Meridian capital token to enable investors to access more traditional investment. However, Finance Magnates elaborates that the Prime Meridian strategy will not be available in the US just yet.