Humanity has witnessed some great advancements over the years. The invention of blockchain was definitely one of them. It has enabled individuals to regain control over their finances among other things. However, for companies, raising capital is still a long and tedious process. Especially when companies need to abide by strict regulations. But is there a way that blockchain can help companies raise capital more efficiently?
Raising capital through more traditional methods, such as public offerings, brings with it multiple issues. For a start, legal fees are usually astronomically high. On top of that, approval can take forever. This means that time, money, and attention are diverted from other important activities, such as marketing for example. And how a company is marketed often heavily influences the type of funding a business can conduct.
However, blockchain offers simple but effective solutions to these problems. When conducting traditional public offerings, businesses are required to send their prospectus to the SEC and wait for the approval. Often, this can take well over 3 months. Although the same route will be taken when conducting an STO (Security Token Offering), most businesses are able to apply for fiat-backed tokens, commodity-backed tokens, stablecoins, NFTs, and utility tokens without approval from authorities like the SEC. This removes unnecessary legal fees and carves off valuable time. And for companies that need to issue governance tokens, these types of cryptocurrencies are normally given more leniency than traditional public offering methods. This makes raising capital on blockchain technology easier and quicker.
And because of this, raising capital through blockchain is becoming increasingly popular. Now giant institutions, most notably MicroStrategy and Tesla, have tokenized stocks. This makes it easier for them to raise capital and increase positions in certain cryptocurrencies, which can be very profitable in the long run.
And thanks to PTPWallet, companies can now sell their own tokens that are backed by and pegged to alternative assets and commodities directly through their own personal white label application. And because PTPWallet enables companies to raise capital directly in their own personal application, the need for intermediaries is removed. This removes unnecessary fees and shortens the entire process. PTPWallet is also very flexible, as it allows businesses to request third-party API additions without having to create an entirely new platform. This, along with instant transactions and multi-currency support makes working with PTPWallet one of the best ways companies can conduct an offering on blockchain.
Using blockchain technology also means that you get all of the benefits of blockchain itself. This makes raising capital more secure and transparent. Because of this, offerings can be completed in a much safer way. This will ultimately provide a better experience for users. And this means that businesses can safely and quickly raise capital or increase direct exposure to cryptocurrencies easily and seamlessly.
For example, one company is currently using PTPWallet to create and sell tokens that are directly backed by gold. This enables them to monetize gold production in ways that never before seemed possible. And due to the nature of cryptocurrencies, the token allows users to trade the price of gold at more accurate exchange rates in faster and easier ways than ever before. And thanks to the white label application, users have a unique, secure, and dependable financial platform to use and manage funds. This makes the process of trading assets much easier.
In summary, the traditional way of raising capital through public offerings is slow and outdated. Not only is it tedious and can cause unnecessary costs, but it also prevents companies from allocating resources efficiently. Blockchain offers a fantastic solution that enables companies to sell tokenized assets in a secure, trustless, and easy way. It removes the need for intermediaries, thus removing unnecessary costs and it also provides a much better experience for the user. And over time, this will prove to be extremely valuable because the success of companies usually depends on their ability to satisfy their users.
If you’re a company and you’re thinking about raising capital, then we’d like to invite you to get in contract with us. Our white label solution will allow you to raise capital cheaper and quicker than ever before. You’ll also receive your own custom application, that’s constantly receiving updates, for your users to buy, store and manage their funds in a secure and trustless way.
You can contact us here.
We wish you all the best and we look forward to helping you raise capital.