Challenge
Primary Markets are a successful Australian FinTech startup that provide management services and a marketplace for transacting/trading secondary securities and investments, as well as assisting unlisted companies in raising new capital/debt/hybrid. Some of the core services Primary Markets offer: Pre-IPO & Secondary Trading Investor Centre Facilitation of Capital Raises Educational Resources for Investors Cap Table Management (on blockchain, utilising Primary Ledger) Corporate Advisory Escrow Services The vision behind this project is to create a global standardised Exchange Platform for Unlisted Securities and Investments, utilising blockchain technology to significantly increase efficiency and accessibility for the securities and unlisted assets market. The key problems being addressed in this project are: Share Registries failing to meet market needs due to incumbent legacy technologies Clearing & Settlement processes traditionally taking 2-6 weeks for unlisted securities Manual Processing Lack of Transparency and exposure of unlisted assets Lack of Liquidity in the market
Solution
The goal of the project is to work toward a solution that successfully addresses the above problems existent in the current market. As a market leader in the space, Labrys was approached with the task of conceptualising, developing and delivering on this goal. The Product Primary Ledger is a modern web application underpinned by Blockchain technology to enhance the registry management and secondary trading of unlisted securities (private equity). All users of the Primary Ledger platform – Private Security & investment Holders, Business Directors and Administrators – gain access via a unified login portal With a modern and intuitive user interface and user experience design, unlisted organisations have instant access and insight over their cap table. Primary Ledger Cap Table Demo Directors can instantly access the Transaction Issuance panel where they can select the Type of Security, Pricing Details and Receiver. Primary Ledger Record New Issue Transaction Panel Once confirming details, the Director is able to process the security issuance on-chain, creating a permanent record of the securities ownership on blockchain. Primary Ledger Record New Issue Transaction Create TECHNOLOGY ARCHITECTURE Made up of four core technology layers, Primary Ledger is built using the following technology stack: 1.React Web App Front-End Layer Web accessible user interface View securities held on the blockchain View and manage profile / account data Manage and update the registry as a platform administrator 2.NodeJS / ExpressJS Middleware Layer Deploy user changes to the blockchain Securely store and manage user data 3.Custom Private Ethereum Implementation Blockchain Layer Originate securities on blockchain Facilitate transactions / transfer of assets Maintain full transaction history and transparency The platform, custom designed and built by our engineers, went live in 2018 with over $150 million worth of securities under management,
Results
Since the Primary Ledger platform went live in December 2018, Primary Markets has been acquired by U.S. based global investment firm, Linqto, at a valuation of $33 million (as mentioned in the Australian Financial Review). The client is now trading unlisted shares for unicorns such as Slack, Virgin Hyperloop, Ripple and more.
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