Recent headlines do not change the reality of pre-IPO markets.
SPVs have been a dominant part of pre-IPO secondaries for over a decade. SPV and counterparty risks are not new. Private companies have long been aware of, relied on, and benefited from secondary markets, even while publicly disavowing them. SPVs and secondaries help these private companies broaden investor demand, provide liquidity to employees and early investors, and support price discovery.
At PreStocks, we mitigate counterparty risk by avoiding 3rd or lower layer SPVs, verifying actual ownership up to the cap table, and vetting and reference checking fund managers before tokenization.
PreStocks tokens are Reg S debt instruments issued outside the U.S. and available only to eligible non-U.S. users. They provide economic exposure without placing tokenholders on private-company cap tables. Minting and redemption require eligibility verification and KYC. Settlement on redemption or exit is made in stablecoins or tokenized public equity after IPO, not via direct equity transfer.
As PreStocks scales, we further diversify backing across more SPVs, negotiate better terms, and progressively upgrade to higher quality exposure.
PreStocks benefits from and advocates for stronger private-market standards, including greater accountability from larger private companies that benefit from secondary markets, stronger protections for secondary-market investors, clearer ownership-chain reporting, stronger rules for SPV fund managers, and improved reporting by token issuers (including PreStocks).
All live PreStocks tokens remain fully backed in accordance with our terms, and PreStocks continues to operate normally.
As long as a secondary market exists, PreStocks exists.
Thank you for your attention to this matter.