IndustrySecurity Token Issuance
Asset ClassPrivate Equity
Value of Investment25,000 USDC soft -up to 250,000 USDC hard cap
Nexus was formed through a merger of AI Capital LLC aka Inportal, bringing capabilities in compliance, deal origination, and the INPR token issuance protocol, with Adwell Media Inc., owners of Kanga Exchange, an active cryptocurrency exchange with KYC, trading algorithms, and hyperledger development capabilities. Nexus is a unique token exchange in that the transactions are conducted on a peer-to-peer basis, investor to issuer. Nexus operates on an Iroha Hyperledger with Hyperledger Besu to access public chains through an Ethereum client and combines both the Kanga cryptocurrency and Inportal security ecosystems. Security token issuance on Nexus can follow any protocol however, to date issuance has been on the INPR protocol. The INPR requires continuous corporate disclosure to ensure investors can make informed trading decisions.
Inportal is now developing Corda R3 to provide a ledger capability for security token issuers who don't have their own ledger.
A security token offering (STO) on Nexus starts with origination. The primary pipeline for company origination is through Inportal, the compliance and advisory side of Nexus where issuers are vetted, and secure data rooms are maintained for due diligence. Inportal starts by examining the company for suitability and to determine the compliance and marketing needs ahead of issuing an STO. Inportal's private market website provides a venue through direct connectivity to Nexus to permit investors to familiarize themselves with the material aspects of the company prior to trading on Nexus. Listing on Nexus can also originate through another token exchange, or third party investment bank or family office provided that the corporate information disclosure is consistent with the INPR protocol communicated through the dashboard.
It is important to note that the actual token issuance is made by the issuer through a digital wallet, and the trades are confirmed by the issuer, not by Nexus.
Nexus will light up as a radically different security token exchange. Being half a crypto exchange with Kanga.Exchange, Nexus provides a seamless way for investors to switch from cryptocurrencies to security token assets such as Culebra tokens, or ikiooTechs without leaving the crypto ecosystem. While we recognize that cryptocurrency traders are a different breed from the traditional private equity investors we believe offerings like Posada Culebra will be a good enticement for currency traders to make the transition, if for no other reason than to get a yield on their USDC holdings.
Investors looking to purchase security tokens will need to have an account on Kanga.Exchange and complete the KYC process before submitting a bid to purchase tokens. Sellers who already have an account may offer tokens directly from their wallets and receive payments in cryptocurrency.
A crucial factor for any private placement or STO is marketing and distribution. To gain wider acceptance for transacting in tokenized securities Nexus has established an educational marketing program with London based Peregrine Communications as a service to token issuers. This program is directed at family offices, wealth mangers and registered investment advisors. Along with the need to emphasize the merits to the offering, the educational aspects include compliance, settlement, and custody.
Tokenization offers many opportunities for structuring and developing new products. At Nexus a Depository Receipt Program has been established whereby Nexus acts as a principal investor issuing tokenized receipts with full rights and legal claim on the underlying tokens. Deposit Receipt token holders enjoy the added benefit of being autonomous and deemed self reporting.
Nexus has also developed a tax credit program to monetize tax credits issued in Puerto Rico. Typically, tax credits are sold in an ad hoc secondary market between accounting firms. By tokenizing tax credits, accounting firms have a go to location to match their clients needs and effectively monetizing the tax credits. Future tax credits can be sold on a when issued basis, and used for mezzanine financing.
There are many possibilities for tokenized financial instruments and Nexus intends on being at the forefront.
The management team of Inportal Kanga Nexus LLC is composed of four executives, two from Inportal and two from Kanga. The team combines the resources of two established firms with their respective expertise; Kanga for ICOs and as a cryptocurrency exchange operator with a robust technology capability based in Poland, and Inportal for capital markets and compliant security token issuance with origination, based in New York and Puerto Rico.