Digital asset broker Templum Markets and IPwe, a patent-transaction platform, are hoping to turn inventions into tradeable digital securities in a move that could allow intellectual property (IP) to be widely financed, owned and distributed.
The launch of the 'patent finance market' aims to make IP a "financeable asset class" and is the latest in a new wave of security token offerings (STOs), which offer shared ownership and trading of otherwise illiquid assets like real estate. The companies say the market will allow patent owners in Fortune 500 companies to secure financing for their ideas while offering those who buy the security tokens an investment opportunity.
“This partnership marks a turning point for the vastly untapped value of patents,” Vince Molinari, CEO of Templum Markets said in a statement on Wednesday. He told Business Insider that "patent or patent portfolio can raise anywhere from $25 million up to $250 million."
The tokens, which will be a novel type of asset, will be issued and traded on Templum Market’s ATS once SEC approval has been obtained, and will be available to accredited investors. Meanwhile, IPwe will be responsible for further development of its global patent database.
The partners expect the first token offering to take place in Q1 of this year.
This post has been updated for clarification.