Newrl introduces tokenized equity solutions based on blockchain

Newrl introduces tokenized equity solutions based on blockchain

Newrl, a public blockchain for mainstream DeFi (decentralized finance), has recently launched tokenized-based equity solutions for companies that are not listed on the stock market. This will be the first Web3 development for ESOP solutions dedicated to startups.

As per credible sources, the platform will support tokenization of equity for issuing ESOPs, improving governance via smart contracts, raising funds, and eventually making the startup equity a more liquid asset class.

It will also be offering greater liquidity, scope, and transparency to new-age startup employees and investors. The startup took the ESOP buyback worth Rs 3,000 crore (~$391 million) in 2021.

Given that there are almost 100 unicorns in the last 3 years, trading in unlisted equity is realized majorly when a company is about to go for an IPO.

Newrl, based on its growth rate and the industry size of around $15 billion today, plans to target around 10% of the tokenization market share by the end of 2023. It further seeks to leverage blockchain technology for building liquidity worth around $500 million in unlisted stocks.

According to Newrl, employees do not prioritize the ESOPs as it lacks liquidity, and they can gain value only on buyback or if the company goes public. The firm has launched these solutions to address the issues faced by the unlisted companies.

Swapnil Pawar, Newrl Founder, said that as the billion-dollar industry is based on the growth of startups and the opportunity to leverage equity, the firm has seen a suitable need to replace many informal contracts, which are likely to be misused and fraud due to lack of transparency.

This will further restructure the process where startups and unlisted companies assign ESOPs and shares, inspiring owners and employees to opt for simple, safe yet tangible solutions.

Source Credit: https://economictimes.indiatimes.com/markets/cryptocurrency/newrl-launches-blockchain-based-tokenized-equity-solutions-for-unlisted-companies/articleshow/91100218.cms