SharesPost might not have the same name recognition as other financial institutions, but they have been a significant influence on how private companies access capital. The hiring of Mr. Chetty comes at a time when they are expanding their crypto trading operations, which is a popular area at the moment.
2018 has been a big year for SharesPost
In February, they created their Digital Securities Group to help ICO issuers connect with their existing private marketplace. In 2009, SharesPost was the first company to offer private companies the ability to market their equity without going through the traditional IPO process, which is a far more efficient way for small companies to connect with investors.
Now it looks like they are taking this idea to the next level, and giving investors a safe and reliable way to buy and trade digital tokens. While there are numerous crypto exchanges out there, most of them are unregulated, and this prohibits institutional investors from dealing with them.
The hiring of Vijay Chetty by SharePost comes amid a growing push by established financial service providers to expand into the crypto space. Coinbase announced last week they were on track to become an SEC-approved broker-dealer, but as this expansion by SharePost demonstrates, they are entering a world in which they will face fierce competition.
In addition to offering innovative services, SharePost offers market analysis and has nearly a decade of experience in brokering private equity products. Their current market outlook for cryptos is very positive, which may be why so many brokers are looking for ways to enter the space.
According to SharePost’s most recent investor survey, the market for cryptocurrency is set to expand this year. Despite the concern that added regulation would deter investment, they found that it could help new money to enter the market.
Rohit Kulkarni is the Managing Director and Head of Research of SharesPost, and he had this to say when the survey results were made public: “The clear takeaway from our first annual cryptocurrency survey is that consumers and investors are bullish about digital currencies,” and that, “They (respondents) believe widespread adoption of cryptocurrency will be a near-term reality. The positive sentiment about digital currencies suggests a fundamental shift in thinking about the way people interact with the financial system.”
The shift that Mr. Kulkarni references could be what is pushing major investment banks like Goldman Sachs, and trading firms like Susquehanna, to develop their crypto operations. Coinbase has also been on a hiring spree, likely to lock down talent from existing industries as they undertake an expansion into areas they haven’t dealt with before.
The hiring of Mr. Chetty does seem to fit into a larger pattern, and as John Wu, CEO of SharesPost Digital Assets Group, said last week, “His (Vijay Chetty’s) experience in building the XRP ecosystem over the past three years makes him the perfect fit for SharesPost as we launch our security token trading platform and exchange network.”
It will be interesting to see what comes out of this mixing of industries and how quickly mainstream investors embrace a new market that is growing rapidly.
Nicholas Say was born in Ann Arbor, Michigan. He has traveled extensively, lived in Uruguay for many years, and currently resides in the Far East. His writing can be found all over the web, with special emphasis placed on realistic development, and the next generation of human technology.