Pablo Ruiz, Michael Didiuk & Adam Dossa

Our partnership with Corl Financial Technologies (Corl), a blockchain startup that is making financing and investing in companies simpler and more intuitive, sees Polymath further its work of discovering ways to help companies raise capital while complying with securities laws.

Their CRL token will be the first token issued in Canada to represent equity ownership for token owners. Their company already adheres to national securities laws and international financial reporting standards (IFRS) accounting regulation, but they want the same level of scrutiny for the token. And we’re going to help them achieve that goal with our ST-20 token standard.

Corl is using revenue-sharing as a tool to provide financing to high-potential, early-revenue companies.

Revenue-sharing investments, comparable to royalty agreements, are a type of funding whereby investors place capital into a company in exchange for a percentage of its future revenue.

What this means is that instead of paying a fixed rate or accruing interest, the repayment of the loan is tied to monthly revenue. When sales are up, the repayment amount will increase and when sales are down the repayment amount will decrease.

This model will facilitate access to funding for emerging companies without the dilution of voting power or the loss of equity that generally results from outside funding. Entrepreneurs will be able to apply and be approved for a loan without providing collateral and without fear of defaulting on payments that are accruing interest.

Corl & Polymath

Polymath’s partnership with Corl helps to enable the framework to effectively create a securities token.

Polymath dramatically lowers the barriers to entry for businesses looking to create tokenized securities on the blockchain and for investors looking to gain exposure to regulated, asset-backed tokens.

The Polymath Marketplace will also give global investors access to securities tokens that will instantly expose their portfolios to the token economy.