Fairmint Launches Advanced Onchain Cap Table Infrastructure
Fairmint Revolutionizes Private Securities Management
Regulatory-compliant onchain cap table solution enhances settlement efficiency and operational transparency for private securities markets.
Fairmint has officially launched its innovative onchain infrastructure tailored for cap table management and private securities administration. This enterprise-grade solution empowers private companies to manage equity issuance, verify ownership, and ensure the compliant transfer of private securities seamlessly.
The introduction of this cutting-edge infrastructure aligns with recent regulatory announcements aimed at modernizing private market operations, underscoring the significance of leveraging distributed ledger technology in managing securities.
Joris Delanoue, the Co-founder and Chief Executive Officer of Fairmint, shared insights into the product, stating, "After extensive development and engagement with regulatory bodies, we have designed an onchain equity infrastructure that aims to rectify the substantial operational inefficiencies encountered in private markets. Our platform facilitates private companies, market participants, and financial institutions in minimizing settlement times and decreasing operational friction while ensuring meticulous audit trails and regulatory compliance. This marks a significant milestone in enhancing private securities management by streamlining processes and simplifying transactions."
Tackling Inefficiencies in Private Markets
The private securities market, valued at an impressive $6 trillion, persists in operating through a combination of outdated systems and manual processes. This complexity introduces higher operational risks and limits liquidity. Historically, traditional securities transactions in private markets have taken between 15 to 30 days to finalize, with transaction costs usually ranging from 2 to 5% of deal value. Fairmint's onchain solution strategically addresses these inefficiencies through:
Standardized Onchain Infrastructure
By employing programmable smart contracts, Fairmint's infrastructure maintains thorough ownership records while automatically upholding transfer restrictions and compliance mandates.
Reduced Settlement Times
Transaction processing, which typically spans weeks, is minimized to mere seconds, all while ensuring robust audit capabilities are preserved.
Institutional Controls for Security
Permissioned access is provided via role-based security protocols, guaranteeing that information is only visible to authorized parties, including issuers, transfer agents, broker-dealers, and investors.
Compliance with Regulatory Frameworks
Fairmint’s infrastructure promotes adherence to securities regulations through the automated enforcement of transfer limitations.
Thibauld Favre, Co-founder and Chief Technical Officer of Fairmint, noted, "Our technology delivers immediate operational benefits while laying the groundwork for potential future advancements in the market. Our infrastructure significantly cuts down administrative burdens while increasing transparency and data integrity in private securities operations."
Aligning with Regulatory Framework
Fairmint’s innovative infrastructure complements the latest regulatory frameworks, emphasizing the necessity for firms to provide new services while adhering to conditions that uphold market integrity. Fairmint is recognized as a registered SEC Transfer Agent since 2023 and is actively seeking broker-dealer licensing to broaden its service spectrum within regulated securities environments.
About Fairmint
Fairmint, Inc. specializes in providing onchain equity management solutions that streamline the issuance, administration, and compliant transfer of private securities. Established in 2019 by Joris Delanoue and Thibauld Favre, the company focuses on enhancing operational efficiency within private securities markets for private enterprises and financial institutions. Headquartered in New York, Fairmint operates as a registered U.S. Transfer Agent.
Frequently Asked Questions
What is Fairmint's new onchain infrastructure?
Fairmint's onchain infrastructure is a comprehensive solution designed for managing cap tables and private securities, enhancing efficiency and compliance.
How does this infrastructure improve settlement times?
It reduces transaction processing from weeks to mere seconds, significantly enhancing overall operational efficiency in the private markets.
What are programmable smart contracts?
Programmable smart contracts are automated agreements that execute predefined conditions, ensuring compliance and maintaining ownership records effortlessly.
Who can access Fairmint's platform?
Access is limited to authorized entities such as issuers, brokers, and investors, ensuring sensitive information remains secure through role-based permissions.
What future developments does Fairmint foresee?
Fairmint aims to expand its service offerings by obtaining broker-dealer licensing and continuously enhancing their infrastructure to meet market demands.
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