DeFi protocol Portal has reportedly forged an alliance with the asset marketplace HighCircleX (HCX), to carry out tokenization for stocks of pre-initial public offering (IPO) firms. 

Specifically, the freshly formed partnership reportedly looks to work towards a goal of simplify the process of making investments in private equity, via developing on the foundation of the Bitcoin (BTC) blockchain. 

Via this initiative, HighCircleX is reportedly having plans down its pipeline to come up with solutions for a variety of matters, nominally the insufficiency of liquidity as well as the value uncertainty for traditional assets.

Per the announcement, HCX will reportedly be in charge of the creation and management for a limited liability company (LLC) for the investments. 

While the investors will have no ownership over the shares of the LLC, they will be equipped with possession towards the tokens which “represent ownership” of the LLC. That kind of tokens are available for trading on the HCX marketplace.

Additionally, the funds generated by the LLC will reportedly be dedicated towards buying a pre-IPO investment. The pre-IPO establishments available for trading and to achieve tokenization include SpaceX, Epic Games, Klarna, Automation Anywhere and Cross River Bank.

“Portal is bringing real-world use cases to Bitcoin. Eventually, we will see the tokenization of many more financial assets onto the Bitcoin blockchain.” Chandra Duggirala, Portal’s executive chairman, further elaborated how the goal of the newly formed collaboration is to bring extra utility to BTC.

Duggirala reportedly offered additional explanation, disclosing that while the assets bear some difference compared to BTC, simplifying the interface for traditional assets will commence the “beginning of merging the Bitcoin ecosystem with mainstream finance.”