Smart Contracts Coming to Employee Stock Options?

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Smart contracts and equity tokenization have been the most popular idea so far with tokenization, but company Bloomio is offering a new take on that idea with their most recent patent that outlines utilizing smart contracts and tokenization for employee stock options. Bloomio is a Switzerland-based startup that was founded in 2017. The company offers a digital investment platform mostly aimed at helping early-stage startups find individual investors for funding. Bloomio itself has raised roughly the equivalent of 2.4 Million in USD (2.2M CHF) since its founding date. 

The patent application (U.S. Patent Application No.20200302527) teaches a method by which the equity for a company would be tokenized and then be held in an electronic wallet owned by the company until the employee stock options were exercised and the tokenized equity would then be distributed in a transaction between the company electronic wallet and the employee’s electronic wallet. 

While not an issued patent, it is an interesting new idea coming out of the financial platform category and if granted could have faster adoption due to it being an internal tool for a company. Check out the claims of this exciting new patent application using the Patent Matrix®. Also, keep up with the other new ideas entering the space using the Securities Tokenization Patent Radian®!