Can the block chain revolutionize over-the-counter (OTC) securities trading? A team of Toronto-based entrepreneurs thinks it can, and they are developing a decentralized securities processing platform. Their platform, Equibit, will allow investors and securities issuers to do business without any third parties. If successful, this peer-to-peer electronic equity system will revolutionize securities trading.
Equibit is a block chain based securities register that manages OTC equity, warrants, partnership units and more. The system includes a shareholder communication system, plus the ability to issue BTC-denominated dividends and distributions. Equibit will manage functions typically performed through transfer agents and central depositories. Hence, the system will save costs for issuers and brokers.
“Equibit lays the foundation of a whole new securities market,” said Chris Horlacher, managing partner at Equibit and a former securities industry CFO. “It allows investors and issuers to come together and manage their relationship without the need for third parties such as transfer agents