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April 27, 2023

Helping Deliver New Means to "Financialize" Locked Equity in the Private Markets in India

India is very interested in digital Real World Assets that trade and have their capital stack as a digital store of value

Helping Deliver New Means to "Financialize" Locked Equity in the Private Markets in India

I was in Bermuda late last week meeting with Apex Group Ltd CEO Peter Hughes (and bumping into him at breakfast in Mumbai five days later), then on to Dubai. Now I am in India with Sanjay Vatsa visiting partners (Shaan Zaveri, Sunil Kanoria, Vara, and JK Tech) clients (Terazo), and variety of folks looking to bring price discovery to the private (gray or 'unlisted') market. We met with our partners as well as the CEO of the National Stock Exchange (NSE India) today and the leadership of NovaaOne Capital Pvt Ltd. in Mumbai with many others and the Chairman of IFSCA Official (the unified regulator in GIFT City ) in Ahmedabad yesterday.

They are very interested in digital Real World Assets that trade and have their capital stack as a digital store of value - these are securities.

The ability to create price discovery and remove data asymmetry in the private markets is a goal for those trying to drive rapid growth in India's economy, particularly their start up economy, which is booming. The latest regulation by SEBI calls for third party marks for the assets in Alternative Investment Funds.

Inveniam, in partnership with our eco-system partners globally are helping deliver new means to "financialize" locked equity in the private markets in India. The partners here in India are not only talking about this, they are doing it, and they are doing it with clear goals. They are seeking not only greater movement of capital, but democratization of Alpha, allowing the 'have not' economy access to participate in the 'have' economy. In addition this will drive significant risk management and improvement in product as capital will flow to high quality products.

Through GIFT city Non-Resident Indians can invest in dollar denominated AIFs investing capital into these projects. These are structured not as dumb tokens with on line data sitting in pdf's but as smart tokens connected to high functioning data. This is achieved with basic parameters.

1) Business logic is understood by business people - structuring & optimizing the deal

2) Contract logic for the business deal is mediated by lawyers and Inveniam IO is making sure the if-then statements needed to monitor the legal contracts are structured correctly

3) Code logic is understood by coders - and applications can build upon one another and multi-chain tokens can trade on multiple regulated platforms

4) Data is just data - but this is seasoned, and private data is managed at the place of rest, with access control so only those who have rights to the data, can see it, and auditiability, and tracability is created. ZK proofs then can transfer trust in the processing of that data.

End users will get store of value that sits on their wallet, where they can see real time asset performance data, buy and sell on periodic basis, say monthly liquidity, and in the mean time, a liquidity facility can allow them to connect to a Mastercard and pay for their Starbucks as needed.

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