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Licensed Broker-Dealer Signs Deal with Due-Diligence Services Provider to Provide CUSIP Identifiers for Private Placement Offerings

18 May

WealthForge will be the first broker-dealer to offer CUSIP identifiers for private offerings

 By Robert Hoskins

New York, NY – CUSIP Global Services (CGS) and WealthForge announced acollaborationin the registrationofCUSIP identifiers for private placement offerings.   Meant to serve the rapidly growing market for online capital formation colloquially known as “crowdfunding,” this joint initiative will bring the precision and reliabilityofCUSIP identifiers to a new sector of the market.

WealthForge will be the first broker-dealer to offer CUSIP identifiers for private offerings

WealthForge will be the first broker-dealer to offer CUSIP identifiers for private offerings

Useful primarily for trade communication as well as clearing and settlement activities, CUSIPs for Crowdfunding will function like CUSIPs for other types of securities, and will feature the same 6-character issuer and 9-character issue format upon which so many market participants have come to rely.  CUSIPs for Crowdfunding are available upon request for most offerings with valid support documentation.

“Making CUSIPs available to private placements adds credibility and legitimacy to this emerging asset class, making crowdfunding more like existing markets,” said Mat Dellorso, CEO of WealthForge. “Just as publicly traded securities are easy to find and easy to track through a CUSIP, we believe the same should be true of these new online securities. This partnership will make that possible.”

In addition to the functionality available through WealthForge’s portals, CUSIPs for Crowdfunding are available via a jointly promoted website, .

“We are pleased to enter this new market with WealthForge as a partner,” said Jim Taylor, Managing Director and Head of CGS. “With the support of our industry-appointed Board of Trustees, it is CGS’ mandate to bring the efficiency and reliability of CUSIP identifiers and descriptive data to new markets – Crowdfunding is a natural extension of that philosophy.”

WealthForge will be the first broker-dealer to offer CUSIP identifiers for private offerings.

Added Dellorso, “In the near term, we are focused on enabling our partners to better communicate and promote their offerings to potential investors. In the long-term, our vision is to create increased liquidity opportunities for private securities – a CUSIP on each one is an important step toward achieving that goal.”

WealthForge Holdings, Inc. is a firm that enables online private investments – investments made in companies, particularly small businesses and startups, that are not on a public exchange. WealthForge provides the technology and oversight needed to complete these private investment transactions within SEC regulations through its wholly-owned licensed broker-dealer subsidiary.

Some of WealthForge’s services include compliance, investor verification, transaction processing, shareholder services and access to larger pools of capital. WealthForge’s broker-dealer subsidiary has been operating as a member of the Financial Industry Regulatory Authority (FINRA) since 2009.

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