The company provides technology to private equity, real estate, funds, and other institutional investors. Now AphaPoint will offer issuance of asset-backed security tokens to its clients. AlphaPoint believes that tokenization will increase liquidity for high value asset classes.
The updated software will allow institutions to create and trade tokens securely and privately.
AlphaPoint said that its new security token technology is already used by a real-estate private equity firm Muirfield Investment Partners and an asset management firm Laureate Digital Securities. While the first is going to issue its own tokens to create a private equity investment structure, the second hopes to reduce the amount of time it takes to onboard customers.
AlphaPoint CEO Salil Donde (on the photo above) stated that the software allows users to tokenize illiquid assets and then trade them on an exchange or licensed platform. He believes that the technology will drive institutional adoption of security tokens, as it purportedly helps to reduce costs and optimize contract execution.
Donde also stated that blockchain technology, which is underlying the tokenized assets, will improve transparency and facilitate trust between investors and issuers.