Helping Startups And Investors Manage Tokenized Liquidity Programs Is Abacus
All you needed to know about Abacus. Where is the tech headed? Read and know.
What Is Abacus?
It is necessary to ensure that tokenised securities similar to digital assets subject to federal security regulations can then be easily tracked and traded and exchanged as the traditional stock shares for the crypto market is becoming attractive to institutional investors, companies and their investors
In this context, a young company called Abacus passed through Y Combinator thinking its technology can make it so.
The Abacus founder and CEO PradyumanVig have thereby painted the picture where Abacus can both automate compliance for the tokenised security transactions keeping track of the chain of custody of those private securities, that are in effect making it simple for SEC among other parties to thereby audit the entire history as these securities transactions indeed have been using the blockchain and the proprietary software stating that Abacus facilitates the issuance, the administration and the settlement of tokenised financial instruments on the blockchain through the smart contracts keeping track of via an on-chain storage layer.
It was found that ultimately the company’s goal is making it easier to buy and sell those private securities as it is making it in the process far more transparent as if it works, and it could be a big deal too. funds and companies considering that traditionally have experienced liquidity even as acquired or sold or go public. As so much money has poured into the private market meanwhile companies have pushed off all these types of events for longer periods. Giving rise to secondary sales, this shift as we know is where Abacus thinks it can help usher in another way for start-ups and funds to exit their holdings through secondary markets for tokenised securities.
The Idea Behind The Formation Of Abacus
The mere idea of a secondary market for tokenised securities right now feels like a very distant possibility where Jon Evans the columnist noted that over the weekend, Bitcoin priced at $ 19,000 apiece at the time is currently trading at $ 3,500 as other cryptocurrencies cratered even more dramatically. Right now, he writes that what’s left of the crypto space is a giant casino of penny stocks giving little to no utility outside of financial speculation.
In this context, it is observed that it could be a painfully long period even before it changes as the true believers in the digital assets are seen to be covering their bases in the meantime betting on the Abacus seemingly one way to do that. The company just closed on $ 2 million in funding including $ 1 million from serial entrepreneur and investor Justin Kan. The other investors included are YC and Coinbase that has been plain about the ambitions to someday offer the crypto securities trading with the last month taking another step toward the end as it launched over-the-counter trading for institutional customers allowing them to direct trades between each other.
It is perhaps unsurprising that Coinbase is among Abacus’s first exchange partners or it will be once it goes live with the new offering made firstly to customers outside the US allowing them to trade hundreds of tokens directly from their wallets as Vig says the Abacus works with Chicago based exchange called OpenFinance that is about to begin trading the first security token partnered with AirSwap a New York-based peer-to-peer trading platform.
The Ultimate Result
The technology presumably is what Abacus is developing which is of burgeoning interest to these parties whereas assuming investors putting stock in Vig and the co-founder Ian Macalinao as the two young software engineers who originally met through the Texas Academy of Mathematics that is a college entrance residential program for gifted high school students. Graduating from Purdue and the University of Texas, they came together to form an analytics platform and more recently to create Abacus.
Still being a very small operation, the two have just two more employees as Vig insists that Abacus doesn’t need an army of engineers and putting it straight he said they were programmatic and automatic as they got a lot of interest as they could spin out new issuances pretty quickly. As they are all API based, the four people don’t seem like much but they have accomplished a lot.
Thereafter it is already seeing some revenue, as they include from SpaceFund which is a new Texas-based venture capital firm that is focused on using blockchain technology funding frontier enabling space start-ups by selling the security tokens to accredited investors to fund them. The Space Fund as far out as it all sounds is paying Abacus a subscription fee after paying a setup fee and Vig expects such fees to add up over time attracting more customers even if too nascent to know what to charge just yet.
The Final Thoughts To Sum Up The Discussion
Vig further explains that they don’t have a formula for their SaaS Model depending on the number of people involved in a particular offering and how complicated compliance is. It is of course what depends on whether and when enough start-ups, as well as investors, gravitate toward tokenised securities over the blockchain happening sooner rather than later as Abacus will be ready and waiting.