In a recent interview, David Schwartz, the Chief Technology Officer (CTO) of Ripple, shared valuable insights into the operational methods of Linqto. The fintech firm specializes in investment services and has been facilitating investments in PolySign.
Schwartz's remarks came after concerns were raised about the safety of investing in PolySign through Linqto. His commentary sheds light on the approach that Linqto employs to facilitate investments in companies like PolySign.
According to Schwartz, Linqto operates by creating a special purpose vehicle (SPV) for each investment opportunity. This SPV is then used to pool funds from investors interested in participating in that specific investment opportunity.
The SPV structure ensures that each investor has legal ownership over their share of the investment while also providing them with limited liability protection. Additionally, it enables investors to participate without needing significant capital or expertise.
Schwartz further explained that this approach also benefits companies like PolySign as it makes fundraising more accessible and efficient. By using an SPV structure through platforms like Linqto, companies can access a broader range of potential investors than they would have otherwise been able to reach.
Overall, Schwartz's insights highlight how fintech firms like Linqto are revolutionizing traditional investment methods by leveraging technology and enabling greater accessibility for both investors and businesses alike.
The article was first published on The Crypto Basic website.