North Capital Investment Technology (NCIT) has launched a new custody solution for funding platforms and introducing brokers.
The new service is expected to enable the creation and funding of specialised brokerage accounts at North Capital Private Securities (NCPS), to hold cash and unregistered securities that have been issued in exempt offerings.
The firm invited strategic partners to participate in the 1 November beta launch of cash custody services at the inaugural North Capital Partner Summit.
Meanwhile, custody for exempt securities is expected to roll out later this year, North Capital revealed.
Sara Borazan, director of business development of North Capital, commented: “Today, the settlement process can take as long as 30 days, and issuers and brokers have to chase investors for funding once they have committed to a deal. It's a significant burden for both platforms and investors.”
“We have taken feedback from our clients to craft a solution that will address this pain point, while increasing transparency for investors.”
Lawrence Fassler, corporate counsel at RealtyShares, a real estate investment platform, said: “Inconsistencies in disparate processes can cause a true operational drain."
“This solution has the potential for our firm to bring escrow, brokerage and custody of exempt securities into a single, seamless technology platform that is compliant.”
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