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Crowdfunding Platforms offer investors the opportunity to buy an equity stake in an unlisted business. This business may be a high-growth startup or it could an SPV that owns real estate. This sector has seen rapid growth as investors have been attracted to opportunities previously unavailable to retail customers.
Goji is proud to announce the launch of its asset custody capability to support this growing sector.
Crowdfunding Platforms issuing shares to investors have to tackle the regulatory obligations to safeguard client assets and comply with the FCA’s Client Assets Sourcebook. Typically this involves holding investments in a nominee company which holds the actual shares and passes the beneficial ownership onto investors.
Platforms typically have to choose between running these processes internally which comes with a significant overhead. This is fraught with regulatory challenges as unlisted securities are notoriously difficult to reconcile under CASS6. The alternative is to use a third party custodian who will take title to the assets and are responsible for the reconciliation. This approach leaves Crowdfunding Platforms depending on the manual processes and legacy technology of these incumbents.
The Goji Platform offers an API first, technology driven approach that meets the demands of today’s online Crowdfunding Platform. Utilising our innovative Client Money capability, Platforms can now receive investors’ funds and execute investments in real-time without having to wait for lengthy clearing times or overnight processes. Platforms can leverage Goji’s regulatory status to take responsibility for both the client money and client assets leaving them free to focus on growing their business.
Get in touch to find out how Goji can power your asset custody.