Using OpenPool’s Reporting Engine to Automate Tax Filings for Venture Club’s RWA Tokenization Platform

What is Venture Club?

Venture Club is an app and protocol for onboarding securities (a type of real world asset, or “RWA”) to Web3 compliantly in order to give paper-based financial assets new utility. The composable nature of Venture Club’s protocol allows asset owners to leverage P2P NFT infrastructure for greater financial flexibility and unlocks new use cases not possible via the traditional banking system. For example, allowing investors to easily trade fractionally-owned assets globally, or using those assets as collateral for loans.

Venture Club’s Reporting Challenge

One of Venture Club’s primary services is issuing tokenized securities for assets ranging from equity to real estate.  However, U.S. reporting requirements were a major friction point for the Venture Club tokenization process. Hiring specialized accountants to deal with the onchain assets and required regulatory filings had the potential to offset some efficiencies gained from onchain tokenization. Venture Club sought a scalable reporting solution to reduce friction to onboarding issuers and investors to its platform, which also minimized their overhead requirements.

The OpenPool Solution

OpenPool ingests on and off-chain datastreams to provide automated workflows for the generation of financial data needed to meet real-world compliance and tax rules. OpenPool is able to recognize events within Venture Club’s smart contract and token-bound NFT activities to track ownership changes, distribution events, and other value accruing to investors. With its data services, OpenPool enables clients and investors on the Venture Club platform to make required tax filings and compliantly report activity to regulators. Best of all, all of this tailored financial reporting will be automated through OpenPool’s powerful data processing infrastructure.

What’s the Impact?

Through this partnership, Venture Club and OpenPool are revolutionizing traditional financial markets and adding value to the emerging ecosystem of RWA tokenization. What in traditional financial markets might require a myriad of spreadsheets as well as lawyers, accountants and other administrators, can now be fully automated via blockchain by recognizing smart contract events and blockchain activity, and translating them into conventional financial reporting metrics. With Venture Club’s innovative tokenization technology and OpenPool’s robust reporting engine, the future is promising and rife with exciting prospects for a more transparent, efficient and innovative era of financial markets.