From Market Watch
CUSIP Global Services (CGS), a leading provider of unique security and entity identifiers and descriptive data that enable efficient global trading, and WealthForge, a licensed broker-dealer specializing in online capital formation and due diligence services, today announced a collaboration in the registration of CUSIP 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 reliability of CUSIP identifiers to a new sector of the market.
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.”