First-ever private market ATS is launched in the USA

Published : Wednesday, June 16, 2021, 3:44 pm
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Rialto Markets and its new private securities Alternative Trading System (ATS) has opened the door for more investors to trade in the private market.

Buyers and sellers now have greater access to shares within US-based private company markets such as those issued under Regulation A+, Regulation CF, and Regulation D, through a viable secondary market.

New investors can place orders to buy shares in companies that have already closed their offerings, and primary investors can place sell orders when they want.

Rialto has made this possible through the Rialto Cross, an SEC-registered ATS where shares can be bought and sold for as little as $10 with no 'gas' fees. ATS subscribership is open to all types of investors, such as retail, accredited and institutional.

Private capital market specialist KoreConX is leveraging the power of its blockchain technology to partner with Rialto Markets for this new secondary venue.

The Rialto Cross joins several US ATS platforms such as NASDAQ and Dash ATS but will be one of the nation’s first to be specifically focused on enabling transactions in privately held securities.

Rialto Markets’ CEO and co-founder Shari Noonan sees this as starting a new era for private market investing:

"It’s an important step towards creating a more efficient infrastructure for capital formation and secondary trading of private securities. We are excited to be a leader in this nascent market and look forward to working with all participants to ensure wide acceptance."

The private market is already rising; investment advice service Millionacres estimates that 330,000 investors use the various crowdfunding platforms, and forecasts that the global crowdfunding market will grow by $124.35 billion between 2020 and 2024, progressing at a CAGR of 18%.

Digital Twin market leader Cityzenith is one of the first companies from the private market to join Rialto's ATS. Its SmartWorldOS™ software platform can create virtual replicas of buildings and cities to track, manage and optimize their efficiency.

The US company has raised $10m to date, with Rialto Markets as deal manager for Cityzenith’s current $15m Regulation A+ offering. In the past year, the offering has added over 5,000 investors and seen its share price increase from $0.575 to $1.50 in just five months.

Company CEO and founder Michael Jansen believes the Rialto Cross is a gamechanger:

"We are excited to be one of the first US companies to offer an ATS to its shareholders. Investors in Cityzenith will no longer necessarily have to wait 3-5 years to access returns. Once we cross our minimum investment threshold, shareholders can sell their shares any time, if they so choose.

"Imagine investing today and securing that type of increase in just a few months, and then potentially selling those shares much earlier.”

Jansen added: "Our current $15m raise has attracted significant interest from accredited investors in recent months, as Digital Twin modelling enables tangible, financial upsides for construction going climate-friendly."

To hear more from Cityzenith CEO Michael Jansen, please join an upcoming FREE investment webinar 'Technology for Sustainable & Efficient Cities’ taking place virtually on Tuesday 22 June at 08:00 CT and 13:00 CT.

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