Metavesco Proposes OTC Market Tokenization Framework to Enhance Transparency and Liquidity

Metavesco, Inc. (OTC: MVCO), a publicly traded diversified holding company, has published a position paper titled "Tokenizing the OTC: A Vision for Transparency, Liquidity, and Growth." The white paper presents a comprehensive framework for bringing over-the-counter equities on-chain through blockchain technology, aiming to transform the OTC market landscape for small public companies and investors.

The document identifies critical systemic barriers plaguing the OTC markets, including severe liquidity constraints that leave shareholders unable to exit positions and issuers struggling to raise growth capital. The paper highlights how toxic financing practices, particularly from convertible note lenders, exploit illiquid companies by flooding markets with discounted shares and using retail investors as exit liquidity. Additional challenges include lack of transparency that enables market manipulation, naked shorting, and the absence of Wall Street analyst coverage that leaves investors without proper guidance and undervalues promising businesses.

Metavesco's proposed solution involves tokenizing OTC equities to leverage blockchain technology's inherent advantages. The framework promises global liquidity by enabling cross-border trading and accessing new capital pools beyond traditional U.S. broker-dealers. On-chain transparency would make every trade, issuance, and wallet visible, effectively eliminating naked shorting and hidden dilution practices. The technology also offers lower costs for issuing dividends and token-based rewards to shareholders while opening new fundraising tools such as on-chain raises and smart contracts, reducing dependence on toxic financing sources.

The company's vision centers on creating a marketplace where small public companies gain fair access to liquidity and capital, working with regulators, innovators, and investors to establish responsible frameworks for OTC security tokenization. Metavesco will participate in an SEC roundtable with Commissioner Hester Peirce on September 4, 2025, to discuss regulatory barriers and opportunities in the digital asset space, advocating for tokenization as the path forward for OTC issuers and their investors. The company maintains that tokenization represents not just innovation but necessity for creating transparent, fair, and global capital markets.

This initiative could significantly impact the approximately thousands of small public companies trading on OTC markets by potentially unlocking global liquidity pools, reducing capital costs, and providing unprecedented transparency. For investors, the framework promises greater visibility into market activities, protection against manipulative practices, and access to community-driven analysis through on-chain metrics. The proposal represents a fundamental shift in how small-cap companies might access capital markets and how investors participate in early-stage public company investments.