Major FinTech Companies Look to Blockchain Technology

Initial Coin Offerings (ICOs) are catching on like wildfire. Much like their counterparts in equities markets, Initial Purchase Offers (IPOs), companies that offer cryptocurrency are now seeking venture capital and funding in the form of ICOs.

In the 7 years since BTC launched, it has become an international sensation. More e-commerce companies, individuals, and businesses are using blockchain technology than ever before. The most popular forms of digital currency include Bitcoin, Ethereum, Litecoin, Dogecoin and several others.

Today there are hundreds of digital currencies vying for their share of the market. Consider that Bitcoin is now priced at $2,602.34, with a market capitalization of $42.89 billion and a supply of 16,472,600 digital coins.

Ethereum is priced at around $200, with a market capitalization of $19.12 billion, and a supply of 93,590,878 digital coins. These numbers indicate the huge volume of interest in trading activity in digital currencies, and specifically the blockchain technology that makes it all possible.

Using Blockchain to Raise Capital

One company that is leveraging the power of blockchain technology to the max is Liquid Asset Token, otherwise known as LAToken. This powerful online platform/marketplace has burst onto the scene with innovative solutions using blockchain technology. Investors and traders can now use the LAT platform to bolster their financial portfolios by investing or trading in illiquid assets with fractional ownership options.

This is the latest in a slew of exciting FinTech ventures that is now operating in the market. LAToken is associated with minimal transactions costs, and investors can bolster their financial portfolios with fractional ownership of real estate (homes, apartments, condominiums, vacation properties etc.). There are many other investment options in the form of artwork, bank loans and more. Asset owners can access capital in the financial markets much cheaper and more cost-effectively than ever before.

Part of the problem with raising money in financial markets is the regulation that needs to be complied with. Bureaucratic red tape slows down the process, and increases the transactions costs for asset owners. Not so with Liquid Asset Token (LAT). The company’s platform includes a wallet for managing all token transactions, as well as a TestNet. LAT acts as a low-cost facilitator of these blockchain transactions on the market.

Asset owners can quickly and easily acquire the necessary cash while retaining full use of the asset. The benefits of such transactions are many: funds are readily available, and no interest needs to be paid on borrowed money. Fractional asset ownership in the form of tokens is a novel concept with practical applications. The issuer of these asset tokens can also purchase insurance or other financial instruments to enhance the attractiveness of these tokens to investors.

How Does This LATs Gound-Breaking Technology Work?

Blockchain technology makes all of this possible. By utilizing tokens, the physical assets in question can be valued in a quantifiable way. It also makes it easy for these shares to be sold on the LAT marketplace. For the asset owner, shares in the physical asset can be sold to investors and the money received is interest-free. For investors, there is a dual benefit: fractional ownership of an appreciating asset, and an enhanced financial portfolio. LAToken officially launched its token sale on Thursday, 27 July 2017, and its Crowdsale is slated for 22 August 2017.

The most important aspects of this proprietary technology are found in its usage capacities. Now, illiquid assets such as arts, and jewelry, property, equipment, and machinery can be leveraged or converted into a liquid asset. Many companies are now using blockchain technology to raise funds in the marketplace.

These ICOs have disrupted convention with a series of presales to raise funds. Currency tokens are a popular form of fundraising, since fractional shares ownership of assets runs directly off blockchain technology. The most popular modern-day version of this is possibly Ethereum, but many others are making a mark on the markets.

Fractional Shares Ownership and Blockchain Tech Companies

LAToken is aiming to capture a slice of this burgeoning market, which effectively cuts out the middleman and allows traders and investors to compete for their share of fractional ownership of shares. Peer-to-peer networks are fast gaining traction in a new age paradigm. Consider that 7 years ago 1 unit of BTC was worth approximately $0.07.

Fast-forward to the present day and we’re looking at $2,600 + per unit BTC. The phenomenal growth of cryptocurrency and blockchain technology is unprecedented. Already, blockchain technology is being adopted all over the world at banks, financial institutions, and e-commerce platforms. Countries like South Korea and the Philippines are regulating cryptocurrency, boosting its presence in financial markets.

At the heart of this innovative new world order is the actual technology that makes it all possible. Smart contracts and intelligent transactional platforms are driving companies like LAToken. Paper contracts have been eliminated in favour of digital contracts that can be easily and safely stored, verified, and established with minimal costs. The benefit of such a contract is that a single event triggers a series of actions until the contract is fulfilled.

This all takes place on the blockchain. This is a public ledger with no single points of failure and no possibility of compromised performance. As a funding tool, blockchain technology is bang on the money. This crowdfunding technique has raised billions of dollars for the year to date, and it is only just getting started.