Vertalo, the digital transfer agent connecting and enabling the digital asset ecosystem through their API-based platform partner with PEG Network. PEG Network allows anyone to create a stablecoin from an ERC-20 token. PEG Network will work with Vertalo to enable digital asset issuers to stake their digital assets as collateral when minting stablecoins.
PEG Network will integrate with Vertalo’s on-chain cap table, data management platform, a reference app, and API Connections to build next-generation fintech solutions for early-stage financings. Vertalo is the optimal platform for building such a solution, as it pairs blockchain read/write capabilities with US Securities law-compliant data handling approaches and investor verification practices. As adoption of decentralized finance (DeFi) services continue to surge, companies like PEG Network will look to platforms like Vertalo to facilitate digital asset verification and integrate compliance technology approaches.
Under the contemplated model, PEG Network will enable privately held, investor-backed companies and their shareholders to pledge, as collateral, their shares, against which a stablecoin is issued. This programmable credit availability reduces the impact of dilution that often results from traditional early-stage financings.
Vertalo CEO Dave Hendricks regards the Defi sector as a key beneficiary of technology which was originally envisioned to serve the security token market. “The convergence of DeFi and digital assets marks an inflection point in the industry. The ability to deliver financial services and products efficiently expands the options for capital formation and liquidity for private asset issuers and investors. Real-asset backed Digital Assets provide additional fuel to the DeFi ecosystem via increased collateral pools, generally accepted valuation methodology of that collateral and lack of correlation with existing crypto collateral types. PEG Network’s approach represents the natural evolution of decentralized fintech solutions that Vertalo’s platform is optimized to support. We are excited to explore opportunities to expand this market alongside PEG Network.”
The partnership is demonstrative of Vertalo’s ability to enable a wide range of financial applications that simply weren’t possible before the digitization of assets, be they real estate, commodities, debt, or the equity of private companies. Decentralized finance is an emerging area of blockchain technology development with the goal of delivering financial services on a permissionless, trustless basis. Vertalo and PEG Network seek to bring the liquidity provided by DeFi platforms in programmable form, enabling new avenues for capital formation.
Eyal Hertzog, a Founding partner of PEG Network noted that “as PEG NEtwork looked for large asset classes that we’re being digitized, we quickly identified equity in private companies as an area of massive opportunity, and Vertalo as a natural partner to go to market with.”