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Newrl launches block-chain based tokenized equity solutions
April 27, 2022
Decentralized finance blockchain Newrl has launched tokenized-based equity solutions for unlisted companies. This will be India’s first Web3 innovation for ESOP solutions for start-ups.
The platform will enable the tokenization of equity to issue ESOPs, raise funds and improve governance through smart contracts, making startup equity a more liquid asset class.
Alongside this, it will give greater access, liquidity, and transparency to new-age investors and start-up employees. In 2021, start-ups took ESOP buyback worth ₹3,000 crore.
Despite more than 100 unicorns in India over the last three years alone, trading in unlisted equity is mostly realized when a company goes in for an IPO.
Based on the growth rate and the business size of $15 billion today, Newrl aims to target 10% of the tokenization market share by 2023. It aims to use blockchain technology to make liquidity worth $500 million in unlisted stocks.
“As ESOPs need liquidity, employees do not give, as they can gain value just upon buyback or the organization goes public. Newrl has launched these solutions to addressing issues faced by unlisted organizations,” it said in a release.
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