Metavesco Proposes Tokenization Framework to Transform OTC Markets
Metavesco's white paper outlines how blockchain tokenization could address systemic issues in over-the-counter markets by increasing transparency, unlocking global liquidity, and reducing toxic financing practices for small public companies.
Metavesco, Inc. (OTC: MVCO) has released a position paper titled "Tokenizing the OTC: A Vision for Transparency, Liquidity, and Growth," proposing a framework to bring over-the-counter equities on-chain through blockchain technology. The company believes tokenization can address fundamental problems plaguing the OTC markets, where thousands of small public companies face systemic barriers including lack of liquidity, limited access to growth capital, and an ecosystem dominated by toxic financing practices.
The white paper identifies several critical issues in current OTC markets. Most OTC tickers trade with minimal volume, creating a liquidity trap that leaves shareholders unable to exit positions and issuers struggling to raise growth capital. Convertible note lenders frequently prey on illiquid companies, flooding markets with cheap paper and using retail investors as exit liquidity. The lack of transparency allows market makers, naked shorting, and manipulative schemes to thrive in the shadows, while the absence of Wall Street research coverage leaves investors blind and undervalues promising businesses.
Metavesco's proposed solution involves tokenizing OTC equities to bring issuers and investors into the transparent environment of blockchain technology. Tokenized shares could trade across borders, unlocking global liquidity beyond U.S. broker-dealers and creating new pools of capital. The on-chain nature of transactions would make every trade, issuance, and wallet visible, effectively eliminating naked shorting and hidden dilution practices. Blockchain technology also offers lower costs and greater efficiency for issuers to distribute dividends and other token-based rewards to shareholders.
The framework suggests that tokenization could significantly lower the cost of capital for OTC companies by opening new fundraising tools such as on-chain raises, smart contracts, and global retail access, reducing dependence on toxic funders. Additionally, while traditional analysts ignore OTC markets, thousands of investors already track on-chain metrics daily, effectively turning the public into analysts through blockchain transparency.
Metavesco, a publicly traded company actively engaged in digital assets and Web3 innovation, has built Bitcoin and Ethereum treasuries and operates mining infrastructure. The company is positioning itself to champion tokenization for OTC issuers, with a vision to create a marketplace where every small public company has fair access to liquidity and capital. Their mission involves working with regulators, innovators, and investors to create frameworks that bring OTC securities on-chain responsibly.
The company's advocacy efforts include participation in an SEC roundtable with Commissioner Hester Peirce scheduled for September 4, 2025, where they plan to discuss regulatory barriers and opportunities in the digital asset space. Metavesco intends to advocate for tokenization as the path forward for OTC issuers and their investors, believing that tokenization represents not just innovation but necessity for creating transparent, fair, and global capital markets.