WEST PALM BEACH, Fla.--(BUSINESS WIRE)--Finova Financial, a digital financial services provider transforming the future of global banking, announced today that it is partnering with crowdfunding platform WeFunder to make Finova’s JOBS Crypto Offering (JCO)—the world’s first equity-linked token—available to investors large and small. Finova’s token will carry the unique attribute of being linked to a share of equity in Finova and will provide for an ERC-20 Ethereum token standard that can not only be traded in cryptocurrency but is also backed by assets in a U.S. corporation.
“We’ve been watching the blockchain, crypto, and ICO (initial coin offering) space for a long time now, looking for a way to bridge the gap to crowdfunding while remaining in compliance with SEC regulations,” says WeFunder co-founder Nick Tommarello. “The JCO appeals to us because it’s the first model we’ve seen that offers a promising new path for companies to raise capital using cryptocurrency as well as take advantage of the crowdfunding clause of the JOBS Act.”
Finova introduced the JCO in November, announcing it as a hybrid of initial coin offerings (ICOs) and a traditional IPO, which allow companies to raise capital more readily through cryptocurrency investments, and an initial public offering of stock.
“The blockchain and ICOs represented fundamental shifts in crowdfunding, with the blockchain promising to open it up to everyone while ICOs weathered a regulatory adjustment that limited them to accredited investors,” says Finova CEO Gregory Keough. “The JCO merges blockchain and crypto with crowdfunding in a legally compliant way and takes us back to the original promise of the ICO, an investment opportunity for even small investors.”
The founders of WeFunder helped Congress pass the JOBS Act and have been preparing ever since for the day that they could finally offer a “kickstarter platform for investing.” With a goal of “building a new type of stock market,” the company has helped more than 165 startups and small businesses via funding from over 125,000 investors.
JCO: How it Works
The JOBS Crypto Offering (JCO) is a new financing process that allows for companies to issue securities to the general public in exchange for cryptocurrency or other funds in compliance with SEC regulations. Ownership of such securities would be represented by entries in a distributed electronic network or database maintained by or on behalf of the Company in accordance with Section 224 of the Delaware General Corporation Law, which we refer to as Tokens. The Tokens would be listed on an Alternative Trading System that is compliant with Regulation ATS under the Securities Exchange Act of 1934, as amended.
For more information, visit: http://jco.finovafinancial.com
About Finova Financial
A digital financial services provider transforming the future of global banking, National Financial Holdings, Inc. (known as “Finova”) develops fair and affordable financial technologies to create a more inclusive financial system and provide a path to financial health for the 2 billion people outside of the traditional financial system. Founded in 2015 by a team of financial services, technology and payment experts, Finova is backed by leading Silicon Valley venture capital firms and Wall Street private equity investors.
For more information: www.finovafinancial.com