Metavesco Releases White Paper Proposing Tokenization Framework for OTC Market Reform

August 26th, 2025 2:38 PM
By: Newsworthy Staff

Metavesco's white paper outlines how blockchain tokenization could address systemic issues in OTC markets by enhancing transparency, unlocking global liquidity, and reducing toxic financing practices for small public companies.

Metavesco Releases White Paper Proposing Tokenization Framework for OTC Market Reform

Metavesco, Inc. (OTC: MVCO), a publicly traded diversified holding company, announced the release of its position paper titled "Tokenizing the OTC: A Vision for Transparency, Liquidity, and Growth." The white paper presents a comprehensive framework for bringing over-the-counter equities on-chain, aiming to transform a market segment historically plagued by structural barriers and inefficiencies.

The OTC markets host thousands of small public companies that face significant challenges including lack of liquidity, limited access to growth capital, and an ecosystem often dominated by toxic financing practices and bad actors. Metavesco believes tokenization can fundamentally address these issues by leveraging blockchain technology to create a more transparent and efficient marketplace.

The proposed solution centers on several key benefits of tokenization. Global liquidity represents a major advantage, as tokenized shares can trade across borders, unlocking new pools of capital beyond traditional U.S. broker-dealers. On-chain transparency ensures that every trade, issuance, and wallet becomes visible, making practices like naked shorting and hidden dilution virtually impossible. The framework also promises lower barriers for rewarding shareholders through efficient dividend distributions and token-based rewards.

Tokenization could significantly reduce the cost of capital for OTC issuers by opening new fundraising tools such as on-chain raises, smart contracts, and global retail access, thereby reducing dependence on toxic financing sources. Additionally, the blockchain environment enables community-driven analysis, turning the investing public into effective analysts through accessible on-chain metrics and data.

Metavesco's involvement in this initiative stems from its active engagement in digital assets and Web3 innovation. The company has built Bitcoin and Ethereum treasury operations and maintains mining infrastructure, positioning itself as a credible advocate for blockchain solutions in traditional markets. The company's vision centers on creating a marketplace where every small public company has fair access to liquidity and capital, while its mission involves working with regulators, innovators, and investors to develop responsible frameworks for bringing OTC securities on-chain.

The timing of this white paper release coincides with Metavesco's scheduled participation in an SEC roundtable with Commissioner Hester Peirce on September 4, 2025, where the company plans to discuss regulatory barriers and opportunities in the digital asset space. This regulatory engagement underscores the practical importance of the tokenization proposal and its potential to reshape capital markets infrastructure.

The implications of this proposal extend beyond technical innovation to address fundamental market structure issues. By potentially eliminating the liquidity trap that leaves shareholders stuck and issuers unable to raise growth capital, tokenization could revitalize the OTC market segment. The transparency features could effectively combat manipulative schemes that thrive in current market conditions, while the global accessibility could dramatically expand investment opportunities for both companies and investors worldwide.

This initiative represents a significant step toward modernizing capital markets infrastructure and could serve as a model for other market segments seeking greater efficiency and transparency. The successful implementation of such frameworks could ultimately transform the OTC market from its historical perception as the "Wild West" of capital markets into a transparent, liquid, and legitimate marketplace for small public companies and investors alike.

Source Statement

This news article relied primarily on a press release disributed by NewMediaWire. You can read the source press release here,

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