Netcapital Inc. announced a strategic expansion of its digital private‑capital platform to support primary issuance and secondary trading of tokenized securities and real‑world assets such as real estate, broadening the types of offerings available to issuers and investors.
The move is enabled by a partnership with Horizon Globex GmbH, which supplies the smart‑contract technology, and Silicon Prairie Holdings Inc., which provides the regulatory infrastructure—including a registered broker‑dealer and an alternative trading system (ATS). Together, the three firms will deliver a fully integrated solution that supports Reg CF, Reg A+, Reg D offerings and tokenized securities, allowing issuers to raise capital through compliant, blockchain‑native channels.
Netcapital’s expansion comes amid significant financial challenges. In the third quarter of fiscal 2025, the company’s revenue fell 85% year‑over‑year as it shed equity‑consulting contracts and shifted focus to its broker‑dealer subsidiary. The new platform is intended to diversify revenue, tap into the growing tokenization trend, and generate new growth opportunities that can offset past losses.
CEO Martin Kay emphasized that blockchain technology and tokenization can enhance global access, transparency, and efficiency in private capital markets. “Through this initiative, we aim to significantly expand opportunities for capital formation and liquidity for companies and investors,” he said, underscoring the initiative’s alignment with Netcapital’s broader technology‑driven strategy.
Netcapital’s regulatory foundation—an SEC‑registered funding portal and a FINRA‑member broker‑dealer—provides a robust base for compliant digital‑asset offerings. The partnership with Horizon Globex and Silicon Prairie ensures that the platform can deliver fully integrated solutions that meet regulatory requirements while offering liquidity through secondary trading.
The company’s strategic pivot toward technology‑driven solutions reflects a response to market trends and the need to address liquidity challenges in private capital markets. By offering tokenized real‑estate and other real‑world assets, Netcapital seeks to attract issuers seeking efficient, transparent capital‑raising processes and to generate new revenue streams that can help the company recover from recent losses.
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