Broker-Dealer FAQ's

Frequently Asked Questions from Vertalo's Broker-Dealer partners.

How does Vertalo help a Broker-Dealer work with Issuers and their clients?

Vertalo enables Broker-Dealers to create a seamless security issuance process for analog (traditional) and digital assets. Vertalo gives Broker-Dealer’s the tools to create an enhanced experience for Issuers and their Investors, thereby creating a competitive advantage.

What unique advantages does Vertalo offer to Broker-Dealers to attract Issuers?

Vertalo offer Broker-Dealers the following unique advantages to empower Broker-Dealer to build their business:

  • An immutable, encrypted cap table that is stored on a blockchain.
  • The option to raise cash and then tokenize or to tokenize and then raise cash - entirely at the Issuer's discretion and timing - thereby creating a Security Token Offering (STO).
  • The ability to avoid expensive (six figure) and time-consuming (up to three months) smart contract fees to create a token that may not become tradable for 12 months.
  • The capability to provide Investors with keyless digital wallets that are accessed over the Internet using the investors’ email address and password - thereby eliminating the need to require investors to create a digital wallet (like MetaMask) and store and use a private key.
  • The ability to choose among several blockchain protocols and easily switch as desired. When switching chains, Vertalo automatically burns the old tokens and mints and distributes the new tokens to the existing Investor wallets.
  • The ease of tracking a Broker-Dealer’s current activity and progress in distributing a security and to see this progress as a percentage of the security’s total distribution.
  • The ability for Investors to see multiple investments from an Issuer using the Vertalo Investor portal - thereby avoiding the common requirement that an investor open a separate digital wallet for each Issuer’s holding.
  • The option to hold both traditional (analog) securities and digital (token) securities side by side - as an Issuer with multiple offerings or as a Broker-Dealer managing multiple Issuers with both traditional and digital securities.
  • The ease of tracking multiple Issuers and multiple securities per Issuer in Vertalo Broker-Dealer portal.
  • Coming soon: A seamless Investor experience encompassing KYC, AML, accreditation, document generation and online storage along with an investor portal for tracking an Investor’s ownership across a number of an Issuer’s securities.
  • Coming soon: A seamless access to digital trading exchanges like OpenFinance and tZERO.

Does Vertalo offer a web portal to Broker-Dealers?

Yes. Vertalo offers a web portal for Broker-Dealers, your Issuers, and your Investors. Broker-Dealers can create new Issuer accounts directly within their portal.

Does Vertalo offer a white-label version of the web portal to Broker-Dealers?

Yes. Vertalo offers white-label options for a Broker-Dealer to customize the Vertal portal to your branding. Vertalo can also give API access since it is natively built as a reference application.

Does Vertalo offer licensing opportunities to Broker-Dealers?

Yes. Vertalo offers licensing opportunities to Broker-Dealers involved in the issuance and distribution of a high volume of issues. Vertalo also offers jurisdiction-specific licensing arrangements.

Can a Broker-Dealer see who an investor is working with?

A Broker-Dealer is able to see all the deals their customers are in, but are unable to see another Broker-Dealer’s customers. In the future, each Issuer may be provided the option to opt-in for visibility to multiple Broker-Dealers.

Can a Broker-Dealer or Issuer delete an investor?

No. Once a coin is issued an investor cannot be deleted from the deal, because the investor is then a shareholder. However, a BD can delete someone from a potential deal, and delete them as a potential customer before the deal is completed.

Is Vertalo an issuance platform?

Yes. Vertalo has the functionality to create wallets and issue tokens (V-Token), but do not categorize themselves as an issuance platform. Vertalo focuses on partnering with issuance platforms, like Polymath and Issuance, to fit the varied needs of Issuers.

How often should I test whether someone owns or controls a wallet?

US accreditation typically qualifies a renewal every 90 days, but each Broker-Dealer or Issuer will have their own preferences. Vertalo’s platform is completely flexible to accommodate any desired schedule.

Can Vertalo help Issuers tokenize their securities?

Yes. Vertalo makes the tokenization of securities into a simple process for Issuers to get started and then can help an Issuer as they need custom and more powerful versions of their token.

Can an Issuer use a firm other than Vertalo to tokenize their assets or shares?

Yes. Vertalo is able to both create tokens or import existing tokens from outside issuance platforms.

Does Vertalo work with Issuers who have both analog (traditional) and digital securities?

Yes. Vertalo works with Issuers that issue and hold analog (traditional) and digital securities on their cap table. Investor’s profiles reflect any holding they have, regardless of whether it’s digital or analog.

Does Vertalo help Issuers and their clients trade their tokens?

Yes. Vertalo is integrated with digital exchanges. Vertalo’s US-based ATS is Openfinance Securities, LLC, a registered broker-dealer and member FINRA/SIPC. This provide a seamless trading experience for investors, since they link directly out to Openfinance from their Vertalo portfolio. Vertalo will integrate with other quality FINRA-registered digital trading exchanges as they come online.

Does Vertalo show me my participation in a specific offering or all of my offerings on Vertalo?

Yes. Vertalo is able to show an investor all of their holdings that use the same email address as a personal identifier (PI).

How does Vertalo handle custody of digital assets and ownership of client data?

Vertalo offers two options for custody: traditional custodial holdings or Direct Custody. Vertalo can integrate with digital custodians for those Issuers and Investors that want a custodian to hold their assets, or Vertalo offers what’s known as Direct Custody. Direct Custody is where Vertalo creates wallets on behalf of Investors and automatically distributes tokens to those accounts. These wallets satisfy custodial requirements since they are non-tradable and have the benefit of being directly owned and held by the investors who purchased the security tokens.

What blockchains does Vertalo work with? Can I request a different blockchain?

Vertalo currently works with Tezos and Ethereum. Vertalo will integrate with other dApp blockchains in the future, and can scope the work and expense to integrate with your chain of choice.

What is Vertalo’s cost to tokenize an asset or security?

Vertalo offers a proprietary V-Token to Issuers in its standard array of services. The V-Token is a simple non-tradable token that serves to allow fast, easy and no additional cost tokenization during lockup periods. If desired, Issuers can work with Vertalo or another token issuance platform during or after the lockup period to create a more sophisticated token that incorporates trading and other features.

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