Raising money for a private offering can be difficult and time-consuming. One of the biggest hurdles companies must face … compliance. Today, North Capital released its first of four planned utility tokens to enable companies that are raising funds from accredited investors to simply and quickly confirm their verified accredited status, allowing them to invest in exempt offerings under Regulation D, 506(c) of the Securities Act of 1933. The AIT solves a clear need for tools to facilitate Know Your Client (KYC), Anti-Money Laundering (AML), suitability scoring, and accredited investor verification in the crypto securities market.
The AI Token is an ERC-20 smart contract developed on the Ethereum blockchain, which will be offered by the group’s broker-dealer affiliate, North Capital Private Securities Corp., to individuals and entities who have been verified as accredited investors. Institutions wishing to utilize AI tokens to verify investors’ accredited status, or to integrate accreditation verification under an OEM arrangement, may integrate through North Capital’s enterprise platform, TransactCloud, a technology built to streamline the offering, transaction, settlement, and post-transaction processing of exempt securities offerings in a secure, compliant environment.
See the full press release below
North Capital Announces AI Token to Confirm Verified Accredited Investor Status
Developed on the Ethereum Blockchain, Token Available Free to Investors
via Accredited.am Platform
SALT LAKE CITY (January 24, 2018) – North Capital, a market-leading provider of technology and brokerage services for exempt securities offerings, today announced the release of the AI token (AIT), a utility token that can be used by accredited investors to confirm their verified accredited status to invest in exempt offerings under Regulation D, 506(c) of the Securities Act of 1933.
“The AI token is the first of four utility tokens that will extend the reach of our market-leading TransactCloud technology platform,” said Jim Dowd, founder and managing director of North Capital. “There is a clear need for tools to facilitate Know Your Client (KYC), Anti Money Laundering (AML), suitability scoring, and accredited investor verification in the crypto securities market.”
The AI Token is an ERC-20 smart contract developed on the Ethereum blockchain, which will be offered by the group’s broker-dealer affiliate, North Capital Private Securities Corp., to individuals and entities who have been verified as accredited investors. AI tokens will be issued with an automatic expiry date, to comply with the SEC’s safe harbor regarding the timeliness of third-party verification. North Capital will be providing a free token verification tool to issuers to validate the authenticity of the AITs.
“Because AITs will be issued to a specific investor’s wallet and can be viewed directly in the Ethereum blockchain, rather than in a side-chain or off-chain system, issuers or token platforms can embed automated AI verification directly into their ERC-20 crypto securities,” said Dowd.
According to Anton Prakash, North Capital’s Chief Technology Officer, deploying accredited verification credentials via an Ethereum smart contract was a logical extension of the firm’s existing technology stack. “We have been focused on expanding the exempt securities business since 2011, and our API functions and related services have enabled over 30,000 transactions. The use of blockchain technology allows for an API-less integration, which will be useful for many of our existing customers and should open entirely new markets.”
AI tokens will be available for free to individual investors who apply via the Accredited.am website, which is operated by North Capital. Institutions wishing to utilize AI tokens to verify investors’ accredited status, or to integrate accreditation verification under an OEM arrangement, may integrate through North Capital’s enterprise platform, TransactCloud.
