Private Sale Tokenization: Opening the Door to the Primary Market

Beyond the surge of stablecoins, equity tokenization is becoming a new focus in the market. Recently, a Web3 startup completed a $5 million funding round, aiming to address a long-standing issue: how to allow ordinary investors to participate in the early growth of top private companies. The solution proposed by the company is to convert private equity in unlisted companies into asset-backed Tokens, enabling ordinary investors to participate in investments in star companies like SpaceX and Stripe with a lower threshold.

This move has sparked widespread market attention on the topic of "private sale tokenization". This alternative asset class, which was originally limited to venture capital and high-net-worth individuals, is now being opened up to a broader group of investors through blockchain technology.

Private Sale Tokenization: A New Direction for Asset On-Chain

The private market has long been one of the most closed-off parts of the financial sector. A certain company has constructed an index comprising 30 top private companies to gauge the overall performance of these Pre-IPO firms. Data shows that the returns from these companies are quite substantial.

From the beginning of 2021 to the first quarter of 2025, the index has risen a cumulative 81%, far exceeding the 51% of the Nasdaq 100 index during the same period. Even against the backdrop of an overall market downturn in the first quarter of 2025, these leading unlisted companies still rose 13% against the trend. This not only reflects the fundamental advantages of these companies but also showcases their tremendous growth potential before the IPO.

However, this "value capture window" has long been open only to a select few. Ordinary investors face multiple barriers such as high thresholds, low liquidity, and complex structures, making it difficult to participate. In addition, the exit paths for these companies are not limited to IPOs, as mergers and acquisitions have become an increasingly common option, further increasing the difficulty for ordinary investors to participate.

"Private equity tokenization" is precisely aimed at breaking this structural inequality. It transforms the originally high-threshold, low-liquidity, and structurally complex private equity into on-chain native assets, significantly lowering the entry barriers, increasing liquidity, and simplifying the investment process through smart contracts.

On-chain private sale equity investment platform

Platform A

This is a blockchain-based asset tokenization platform designed to allow global users access to Pre-IPO assets that were previously only available to high-net-worth individuals. The platform first completes the actual equity acquisition of the target company and then converts this portion of equity into on-chain tokens at a 1:1 ratio. The total issuance, circulation paths, and holding information of all tokens are publicly transparent on the chain.

The platform undertakes complex processes such as due diligence, structural design, and legal custody, allowing users to participate in investments starting at $10 using just a credit card or USDC. The token price is highly correlated with the company's valuation, and investors' returns come directly from the actual growth of the enterprise.

Platform B

The platform recently launched a new type of product, the first product is a Token based on a well-known aerospace company. Each Token is linked to the expected value trend of this aerospace company, which is valued at $350 billion, with a minimum investment threshold of only $50, supporting Apple Pay and stablecoin payments.

This Token employs a special "tracker" mechanism: it is essentially a debt instrument dynamically linked to the valuation of the target company. When a liquidity event occurs, such as an IPO or acquisition of the target company, the platform will return corresponding stablecoin profits to investors in proportion to their Token holdings, which may even include dividends.

Platform C

This is a RWA asset tokenization solution provider based in Europe, entering the private sale market securitization field. The platform collaborates with local digital securities platforms, aiming to reshape the way European professional investors participate in the private sale market using blockchain infrastructure.

Its core advantage lies in the standardization of product structure, with issuance compliance logic embedded, allowing for rapid replication and expansion across different jurisdictions. The special technical standards used by the platform allow for the entire process of token generation to transfer to embed control logic such as KYC and transfer restrictions, ensuring that products are legal and transparent, and investors can self-certify their safety on-chain without relying on platform endorsements.

Conclusion

The rise of private sale equity tokenization signifies that the Primary Market is entering a new stage of structural transformation driven by blockchain technology. However, this process still faces many real challenges. Although it reshapes the access rules, it will still take time to completely break the deep structural barriers between retail and institutional investors. This is not only a technological revolution but also a long-term game about trust, transparency, and institutional reconstruction; the real test has just begun.