Securitize, a company empowering private businesses to raise capital in ways that leverage digital assets, is enabling Exodus to offer a digital representation of shares of its Class A common stock to its Class A stockholders. Leveraging Securitize’s technology platform, Exodus, a company that allows its users to secure, manage and exchange crypto assets in a single wallet, has concluded an approximately $75 million offering of its Class A common stock.
This news is noteworthy because traditional capital raising methods have generally only permitted accredited investors, private equity firms, or major financial institutions to invest in early-stage, high-growth companies prior to an initial public offering under the Securities Act. Following the U.S. Securities and Exchange Commission’s decision to raise the Regulation A offering limit, companies can now raise up to $75 million in an offering under Regulation A in a 12-month period from individual investors.
To enable this groundbreaking offering, Securitize provided two critical services to Exodus. Securitize collected necessary investor information and performed Know Your Client (KYC) checks through its Securitize iD feature, which verifies U.S investors. Securitize is also acting as Exodus’ digital blockchain-based transfer agent.
“Our public offering was an innovative way to give our customers direct ownership in Exodus and that is made possible through our partnership with Securitize,” said Exodus CEO JP Richardson. “Securitize is the go-to platform for the investor-ready compliant capabilities necessary to invite, onboard and issue digital representations of shares of our Class A common stock to our investors and we look forward to growing our relationship over time.”
“We were excited to play a key role in Exodus’ raise. Their record raise is yet another major example this year of the movement away from traditional issuance to a digital format,” said Carlos Domingo, cofounder and CEO of Securitize.
In addition to empowering Exodus’ Regulation A offering, Securitize has assisted with:
- First credit rated tokenized fund in Japan, with Sumitomo Mitsui Trust Bank
- First venture capital tokenized funds, with SPiCE VC and Blockchain Capital
- First security token offering in Japan, with Lead Real Estate
- First security token issued by an NBA player, Spencer Dinwiddie of the Brooklyn Nets
