Exodus Movement, the company behind the multi-asset software Exodus wallet, will issue its digital Common Stock Tokens, EXIT, on the Algorand blockchain, an open-source, permissionless, pure proof-of-stake blockchain protocol.
Algorand announced the news in a press release on Monday, June 2nd. According to the announcement, each EXIT token will represent one share of Exodus Class A common stock. Exodus is working with Securitize, an SEC-registered transfer agent and the first end-to-end digital platform utilizing blockchain technology for transfer agent services, to complete the project.
In March 2021, Exodus Movement filed with the US SEC for permission to sell $75 million in shares of the company at $27.42 a pop through a Regulation A+ offering. This was a unique public offering that the company called the 2021 version of an ICO. This allowed its crypto customers to buy stocks through Exodus Wallet, but only its own stocks. The stock purchase was allowed through payment with Bitcoin, Ethereum, or USDC.
The company began offering shares in the Exodus Wallet on April 8th through Securitize. On April 12th, the company announced that within four days, $59 worth of stocks had been sold. If further announced that within nine months after the completion of the offering, Exodus Wallet shares would be represented by blockchain common stock tokens.
EXIT is the name given to these tokens and will be based on the Algorand blockchain. Sebastián Milla Goñi, Chief of Special Projects at Exodus, commented:
“Exodus common stock tokens (EXIT) will be released on Algorand, a high-performance blockchain network aligned with our goals to redefine the future of finance. This exciting partnership allows us to move closer to opening secondary trading in the near future.”
These EXIT tokens will be claimable by Exodus shareholders inside the Exodus wallet. Exodus intends to make the Class A common stock available for trading on several alternative trading systems (ATS) including tZERO, where EXIT tokens will be able to be used to facilitate trading in Exodus’ Class A common stock.
According to the company, Exodus has built-in support from Securitize, potentially making it easy to launch digital assets directly to the 1.6 million Exodus users. The combination of Alogrand, Exodus, and Securitize will provide individuals and institutions “access to unique opportunities that were previously only available in fragmented experiences.”
- Sean Ford, COO of Algorand, stated:
“Algorand was designed for modern financial applications and we are thrilled that Exodus has chosen Algorand to release the EXIT token. Our partnership with Exodus is providing best in class management and exchange of digital assets on Algorand, representing a significant step in enabling broad access to the future of finance that is accelerating on our advanced technology.”
If you found this article interesting, here you can find more Blockchain and cryptocurrency news