- According to Exodus, its EXOD common stock will be tokenized on the blockchain, making it the only American firm doing so.
The firm announced on Monday that Exodus Movement, the software developer behind the Exodus Wallet for Bitcoin, has received approval to list its common stock on the New York Stock Exchange.
The NYSE’s EXOD ticker denotes a recent increase in enforcement measures by government regulators against cryptocurrency projects and developers.
Although it should undoubtedly raise some red flags, JP Richardson, the CEO and co-founder of Exodus, stated that the company has received approval from the U.S. Securities and Exchange Commission and is authorized to trade on NYSE American, formerly known as the American Stock Exchange (AMEX).
The interesting thing about this, according to Richardson, is that we are the only firm in the US with tokenized common stock on the Algorand (ALGO) blockchain. The common stock is available for purchase on the blockchain. That is accurate as of right now, and it remains accurate as of Thursday.
Exodus is able to raise money from the public in a controlled way thanks to its SEC qualification, which indicates that the business has been given permission to offer and sell shares of its Class A common stock to investors in accordance with Regulation A of the Securities Act.
In 2021, Exodus went public by listing its stock on the broker-dealer tZero. Exodus started selling common stock on April 8 and raised $60 million by April 13, 2021.
The EXOD stock, which is now traded on the OTCQX exchange, will stay available there until May 8, according to the business. On May 9, it will start trading on the NYSE American.
According to Richardson, one advantage of tokenizing the EXOD shares is that it will facilitate and expedite investor trading.
According to him, it functions just like a cryptocurrency, which is amazing in terms of use. Beyond that, if you consider consequences such as dividend payments, we may use USDC to distribute dividends to stockholders on a blockchain.
He continued, “We could have direct voting and governance on the blockchain with stock, so corporate governance.”
Richardson called it a new era of equities being tokenized on the blockchain and expressed optimism about the future of publicly traded digital assets despite the SEC’s crackdown on cryptocurrencies.
He stated, “We envision a time when traditional stocks are powered by the blockchain.” That, in my opinion, is the best part of all this effort that we’re putting forward.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
