PreStocks Addresses SPV Risks in Pre-IPO Secondary Market

PreStocks, a platform for tokenized liquidity of Pre-IPO stocks, has issued a statement regarding recent discussions about the risks associated with Special Purpose Vehicles (SPVs) in the Pre-IPO secondary market. According to Foresight News, the use of SPVs in this market has been established for over a decade and does not represent a new risk. Private companies have long relied on secondary markets to provide liquidity and support price discovery. To mitigate counterparty risk, PreStocks has implemented measures such as avoiding the use of three-tier or lower SPVs, verifying actual ownership up to the equity table, and conducting due diligence and background checks on fund managers before tokenization. PreStocks tokens are issued as Reg S debt instruments, available only to qualified non-U.S. users, offering economic exposure rather than direct equity. All active PreStocks tokens are supported according to their terms. The platform plans to continue diversifying SPV sources and enhancing exposure quality in the future.