VANCOUVER, Jan. 10, 2018 /CNW/ - Katipult Technology Corp. (TSXV: FUND), an industry leading and award-winning fintech company, is pleased to announce it has signed a Memorandum of Understanding with Polymath Inc., creator of the Polymath securities token platform, to collaborate in the development of a system of recording securities ownership and transmission using blockchain technology.
Together, the companies will explore the potential support of Polymath's tokenized digital asset issuance services within Katipult's investment platform software infrastructure.
Katipult has been actively working within the private capital markets around the world to help alternative investment firms set up their own investment platforms to revamp their business processes to be more agile, scalable, and efficient. The Katipult platform can be used for Regulation D offerings in the United States such as Reg A+, 506(c), 506(b) or under regulatory regimes including those of the Financial Conduct Authority in the UK and the Monetary Authority of Singapore. Katipult believes the growing prominence of initial coin offerings is introducing another channel and new development to the concept of raising capital online.
"Private capital markets have been undergoing a transformation over the last few years with firms leveraging regulations for raising capital online; that trend is only set to accelerate rapidly with the spread of efficient blockchain technology," said Brock Murray, CEO of Katipult. "Polymath is pushing innovation in this respect by guiding companies through every step of the token launch process, while also ensuring strict legal compliances are met."
"We are excited to work closely with Katipult to develop a next generation interface for investors and managers to empower them to manage blockchain security portfolios," said Polymath Chief Executive Officer Trevor Koverko. "Existing interfaces demand nuanced technical knowledge to operate securely and efficiently, but we believe our combined efforts can overcome this hurdle and deliver greater ease of use and superior user experience."
Driven by client demand, Katipult is actively working on integrating blockchain capabilities as an extension to its existing infrastructure which further improves efficiencies and reduces costs from eliminating third party intermediaries. The company expects the integration of blockchain into its platform by the second quarter of 2018 with the release of its secondary markets capability.
"Collaboration with other industry pioneers is important and this agreement demonstrates the collaborative nature of fintech and blockchain communities to push innovation in this industry," added Murray.
Retention of Market Maker
The company is also pleased to announce that, subject to regulatory approval, it has retained Mackie Research Capital Corporation to initiate its market making service to provide market making services to the Company in compliance with the policies and guidelines of the TSX Venture Exchange and other applicable legislation. Mackie will trade shares of Katipult on the TSXV for the purposes of maintaining a reasonable market and improving the liquidity of Katipult's common shares. The Company has agreed to pay Mackie $3,500 per month for the first 6 months, $4,000 per month thereafter and the agreement may be terminated by either party with written notice of 30 days. The Company and Mackie act at arm's length, but Mackie may provide investment banking services to Katipult and Mackie and/or its clients may have an interest, directly or indirectly, in the securities of Katipult. The agreement is for the purposes of maintaining market stability and liquidity for the Company's common shares and is not a formal market making agreement. There are no performance factors contained in the agreement between Mackie and the Company and Mackie will not receive any shares or options from the Company as compensation for services it will render.
Polymath (https://polymath.network) is an interface between financial securities and the blockchain, simplifying the process for issuers to overcome the complex technical and legal challenges of a successful token launch.
Polymath's security token protocol aims to emerge as a new standard for blockchain-based securities tokens.
Katipult (www.katipult.com) is a financial technology (FinTech) company offering proprietary, cloud-based software infrastructure on a white label basis that allows client firms to design, set up, and operate their own branded investment platform across multiple distribution channels - including web, mobile, and social media. Businesses deploying the Katipult platform are operating in over 20 regulatory environments to grow investor networks, efficiently manage investors, and streamline deal-flow administration in the areas of equities, debt and real estate.