Private equity blockchain network, Swarm is now tokenizing investments in some major crypto firms, allowing its users to purchase fractional shares in Robinhood, Ripple and Didi. According to a press release out of Shanghai Wednesday, this new secondary market opens the door for individuals to hold equity in these pioneering companies. The equity being tokenized is sourced by Swarm’s partners from former employees, who are now provided with liquidity for their holdings.
“Our goal is to democratize investing, and introducing tokens that represent equity is a major step forward in this mission,” said Philipp Pieper, CEO and Co-Founder of Swarm, in a statement. “Now, any Swarm investor can hold equity in some of today’s most prominent tech startups.”
Swarm, which opened up its private equity platform in March, said the launch of tokens representing equity in tech companies is accomplished via its partnerships with Silicon Valley venture capital firms and funds with direct and secondary access to the equity.
“By offering a Ripple token representing equity in Ripple the company, Swarm Fund offers an answer to what some say is a limitation of Ripple’s XRP token as an investment,” said Timo Lehes, the company’s co-founder and chief investment officer. “XRP is a top cryptocurrency, behind only Bitcoin and Ethereum in market cap, but it does not represent equity in Ripple or reflect the value of Ripple payment protocol. Investors looking for a more holistic piece of Ripple’s value may look to the Ripple Equity Token as a solution.”
The Swarm blockchain platform allows its users access to traditionally exclusive investment opportunities, such as private equity and hedge funds, pooling together smaller investments into larger, institutional-sized blocks. It also gives fund managers access to capital from a new class of investors who want exposure to institutional-type investments, but don’t have the high minimums many institutional funds require.