Next, we will leverage blockchain to address the biggest bottleneck in our asset trading life cycle: the clearing & settlement process. A majority of the assets currently trading on our platform clear through DTCC, one of the largest securities depositories in the world. Currently to get to DTCC, we have to go through intermediaries (transfer agents) who are very much paper-based in their bookkeeping process. This becomes a roadblock for us to achieve true T+3 efficiency in the market. We can become DTCC transfer agents ourselves, but we will still have to sync up with the main TA of record to prevent double-selling. However, DTCC has rolled out blockchain initiatives within various asset classes and we will be able to plug into their framework to go direct and bypass the intermediaries (transfer agents), allowing us to achieve faster settlement times than anyone else in the industry.

Lastly, for non DTCC eligible assets, we can use the distributed ledger to maintain secure recordkeeping for transfers between shareholders. Many private securities do not use a centralized security depository, but by connecting with our technology we can provide them with a decentralized depository where all of their transactions can be recorded and ownership can be tracked in an authenticated fashion. This opens up opportunities to on-board private companies and private funds that are not publicly registered today.

Hortz: Can you explain how besides providing transparent pricing, your platform also provides banking, compliance and document management?

Fishfeld: These tools are all necessary to speed up the transaction process. For some, we decided to build our own, and for others, we decided to build into others. To begin, because we own a broker dealer, we knew we needed to get information to our compliance officer, and get his responses as quickly as possible. We therefore built a compliance dashboard that acts much like an auditable dropbox. Files are uploaded or transmitted, depending on the method of receipt, and our compliance officer can review each trade and approve when complete. Once approved, the listing can go up automatically without an additional step. These time saving mechanisms are what get us closer and closer to real time trading.

As for our banking system, we decided to build a dedicated integration with a banking software company, allowing us to move money within our system for a fraction of the cost and time traditionally required. This banking system also provides us with an additional layer of review as each buyer and seller is required to complete OFAC, KYC and AML checks just to trade, ensuring a level of compliance we think unmatched. We do KYC, AML, OFAC, accreditation, and suitability reviews for every investor. What we have been able to do is streamline the review and approval process through our cloud-based interface.

Hortz: You provide secondary market services to a number of online crowdfunding private real estate platforms, like AHP, PeerRealty, and StartEngine. What is the scope and nature of the relationship?

Fishfeld: Our initial thesis when entering the industry was to support the proliferation of online capital raising platforms by providing liquidity. We created great relationship with portals to do just that but quickly realized that the size of this market was not yet where it needed to be, although we expect it will get there. Recognizing that the need for liquidity is not new, we started focusing on other real estate structures that required access to liquidity and zeroed in on the non-traded REIT market. With over

$90B in assets held by over 1.2M people, we knew we could make a huge difference quickly if we provided the tools we had built for this archaic market. That is where we are focused today.

Hortz: By bringing in new technology and more efficiency to the process, what level of pricing/cost

benefits can you bring to advisors and their clients?