Over-The-Counter (OTC) trading is direct dealing between two parties without the involvement of any third party in between. Similarly, OTC investment is direct investment in shares and securities without the involvement of a regulatory body in between. For a long time, OTC trading was the singular most popular way of making trades and OTC investment was the only way of making investment in new ventures.
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It wasn’t until the development of big banks and huge stock exchanges that payment often began to involve an intermediary. This trend continued till the exchange system took over the world and the over-the-counter investment (whether digitally or manually) became heavily regulated and thus problematic for investors.
How will OnPlace Boost Over-the-Counter Investment?
Since P2P transactions and investment are the cornerstone of the blockchain and smart contracts revolution, it is easy to see that the new assets have a big role to play in the future of the OTC investment and trading as they enable reliable P2P transfer of funds and smart contracts that allow automatic fulfillment of agreed terms. So, a new platform for the promotion of OTC investment is a perfect application of crypto technologies. OnPlace, a new OTC investment platform, aims to use its new approach for the funding of fastest growing small and medium tech companies in the world without the role of a governmental body bearing down on the two parties.
Customers can trade assets belonging to different startups and companies directly on the new OnPlace platform. Without the usual red tape, a fledgling company can raise a lot of funds through the new platform. The shares of the companies are transformed into tokenized smart contracts for each individual entity and the platform guarantees customer shareholder rights.
According to OnPlace’s portfolio on Tokendesk.com:
“We can say with absolute certainty that investment into private IT companies has become one of the most reliable ways to get a high return percentage on investments in a relatively short period of time. “
PATS Protocol
OnPlace’s Private Assets Tokenization System (PATS) is an approach used by the OnPlace platform to convert OTC assets from IT companies into tokenized assets for investment purposes. At first, the interested company aiming for releasing tokenized assets has to follow several steps starting with the establishment of a Marketplace Opportunity Window (MOW).
A selection of assets to be tokenized is done based on the criteria and communal discussions of crypto-investors. This is followed by tokenization and then circulation of these assets in the trading circles. The tokens are supported by their life cycle protocol that allows decentralized control by the token holder community.
Furthermore, the decentralization of audit and integration of management principles on each tradeable assets is ensured by the protocol. So, OnPlace has gone to lengths for the purpose of establishing a private and safe solution for the OTC field.
OnPlace’s Future Roadmap and Token Generation Event (TGE)
The platform has been in development since 2016. It initially registered in Russia but has since moved to the USA and become a corporate entity. The platform raised over $900,000 in seed round and has since released a closed alpha version for the early backers. More than $1 million was raised during the first wave of individual backers.
A pre-sale and TGE is slated for Q3 of 2018 for putting their new coins in circulation. The coins will populate the platform and will become the staple currency on it which will be used for trading OTC shares.
Learn more about OnPlace – https://onplace.io
