Why Intellistake Moved Early on Tokenized Markets While the World Is Just Catching Up

Jason Dussault
Chief Executive Officer, Co-Founder
Blog
7 min read
 This Post is disseminated on behalf of Intellistake Technologies Corp.
Being in the circles that I am, I often hear about things that the general public haven’t yet discovered. So when one of my friends told me that BlackRock’s CEO had said that “tokenization today is roughly where the internet was in 1996.”1 that struck a chord, because of what I had read, that Kraken is buying Backed Finance,2 a specialist in tokenized stocks, as part of its own path toward an IPO.

Different companies, different strategies, same direction of travel. For me, it felt less like a revelation and more like the outside world catching up with what we built Intellistake to do.

From buzzword to market infrastructure

I know tokenization can sound abstract, so let me put it in very simple terms. For decades, ownership of assets – shares, bonds, funds, even some private investments – have been recorded in layers of databases, registries and paper. It works, but it is slow and full of friction. Settlement can take days. Reconciliation takes teams of people.

Tokenization is just a more efficient way of keeping track. Instead of a paper certificate or a line buried in a back-office system, you have a secure digital record on a ledger that everyone relevant can see and verify. Transfers can happen much faster. In time, the same approach can apply not only to public equities and ETFs, but also to real-world assets like infrastructure projects, revenue streams or specialized funds.

What has changed over the last year is that this is no longer just the territory of start-ups and enthusiasts. Large asset managers are writing about tokenization in mainstream financial media.3 Global banks are publishing forecasts on the size of tokenized markets.4 Regulated exchanges are buying tokenization businesses outright. When that happens, a concept stops being a buzzword and becomes part of the next generation of market infrastructure.

Why Intellistake chose to move early

When we created Intellistake, we tried to look a few steps ahead. If more assets were going to live on digital rails, someone would need to operate at that junction in a way public-market investors could actually access and understand. I have worked in and around public companies for most of my career, and one thing I have learned is that people like clarity. They understand a ticker. They understand audited financials. They understand a board they can hold accountable.

So we decided Intellistake should be a listed company first and a digital-asset specialist second, not the other way around. Behind the simple structure of a public company, we built the machinery needed to participate in tokenized markets and decentralized AI networks safely. That means institutional-grade custody, segregated vaults, strong governance and all the unglamorous controls that risk teams actually like to see.

Our focus has been on the “pipes and rails”: holding and staking carefully chosen digital assets, operating validator positions that secure networks. Some days it feels almost too conservative compared with the noise in the broader crypto space. But that is intentional. We want Intellistake to feel familiar even as the underlying assets become more modern.

Bringing Venture Hub into the picture

There is another important piece that we have not talked about as much publicly, and this is where tokenization gets really practical. Intellistake has signed a letter of intent to acquire Venture Hub,5 a specialist platform that helps projects and companies move assets on chain and manage them once they are there.

Venture Hub does more than one thing. It supports tokenization, yes, but also treasury management, incubation, and even elements of market making and liquidity support. In plain language: it helps take real businesses, real assets and, sometimes, real revenues, and gives them a digital structure that can interact with modern markets.

If we complete this acquisition as planned, Intellistake will not just be holding tokens and assets on its own balance sheet. We will likely be one of the only publicly listed technology companies able to offer a near-turnkey path for others: helping them design, issue and manage tokenized instruments, safeguard the resulting treasuries, and support those assets as they begin trading.

Importantly, and I do not want to overstate this; there is still work to do, and integration is never as simple as a diagram makes it look. But the combination of a public company, regulated treasury partners, institutional custody, a specialist tokenization, and incubation platform is unusual. It places Intellistake in a position where we are not just participating in the tokenization wave – we are potentially helping other organizations ride it.

An early window, not a permanent secret

When I speak with investors who are new to this space, I often hear two conflicting reactions. On one hand, there is excitement: the idea that markets might become faster, more transparent and more inclusive is intuitively appealing. On the other, there is hesitation, usually around complexity and trust. People ask, sometimes quite directly, “Is this for me, or is this only for specialists?”

My honest view is that tokenization is for everyone in the long run, but the access points will matter enormously. A handful of companies, Intellistake among them, are trying to build those access points in a way that fits comfortably inside existing regulatory and governance frameworks. We are still early enough that this feels slightly niche. I do not think it will feel that way for very long.

And by the way, this is not a call to rush into anything. Each person has their own risk tolerance and priorities. What I hope comes across, though, is that the combination of Intellistake and Venture Hub following the closing of the acquisition is being designed quite deliberately: as a public, transparent vehicle at the intersection of tokenization, treasury management and incubation, at a time when some of the largest players in global finance are just beginning to scale their own efforts in the same direction.

If, in a few years from now, tokenized assets and on-chain treasuries feel as ordinary as online banking does today, my aim is that Intellistake’s shareholders will be able to say they were involved in building that future, not just reading about it after the fact.
      Sources

1 https://www.blackrock.com/corporate/literature/article-reprint/larry-fink-rob-goldstein-economist-op-ed-tokenization.pdf
2 https://blog.kraken.com/news/backed-acquisition
3 https://funds-europe.com/the-steady-rise-of-tokenisation-in-asset-management/https://funds-europe.com/the-steady-rise-of-tokenisation-in-asset-management/
4 https://www.dbresearch.com/PROD/RI-PROD/PDFVIEWER.calias?pdfViewerPdfUrl=PROD0000000000610273
5 https://www.newswire.ca/news-releases/intellistake-technologies-corp-signs-letter-of-intent-to-acquire-premier-ai-web3-venture-accelerator-singularity-venture-hub-823804100.html

      Disclaimer

There has been significant volatility in digital assets and their value can decline rapidly, which in turn would lead to a decline in the stock price of companies holding digital assets. Intellistake is a start-up that does not have the same access to capital as other larger more established companies.

Intellistake has just commenced operating its business and is at an early stage of development. Intellistake is entering this space by acquiring and operating blockchain validator hardware that supports AI networks and investing in AI-related digital tokens to primarily operate validator hardware.

Intellistake is reliant on Orbit AI for the financing and technical execution of the planned satellite launches. Intellistake’s involvement is limited to providing the validator and node infrastructure. The amount of any future revenues or benefits that may accrue to Intellistake has not yet been determined.

Intellistake is presently evaluating the regulatory framework for tokenization. Any tokenization will be subject to it being completed in compliance with applicable law, regulatory requirements and terms of any underlying agreements associated with the underlying assets. The actual structure of such tokenization, the assets that would be subject to tokenization, and the associated timeline, have not yet been determined. Intellistake will provide further updates as material developments related to this tokenization strategy occur.

Intellistake is developing custom AI software systems called "AI Agents" for businesses. It recently announced the development of IntelliScope, a newly designed enterprise artificial-intelligence (AI) suite that applies decentralized AI technologies to deliver transparent and verifiable corporate intelligence. IntelliScope, which is in testing, is being publicly introduced as Intellistake's enterprise AI suite, reflecting the Company's focus on advancing practical applications of decentralized AI technologies.

The IntelliScope suite is being developed as a collection of modular AI agents, each intended to address specific enterprise challenges. Development has advanced through internal closed testing, where functionality is being refined and validated. Built to leverage decentralized AI technologies developed within the ASI Alliance FET token ecosystem, IntelliScope is now preparing to move into closed beta testing with an enterprise client, a phase focused on gathering feedback to shape premium features and expand real-world use cases.

The Company intends to deliver these solutions either as one-time projects or ongoing subscription services. Revenue is expected to come from implementation fees and monthly subscription payments. The Company does not presently have any customers. Intellistake is just commencing operations. It is targeting significant growth but its business is subject to several risks related to general business, economic and social uncertainties; the sufficiency of cash to meet liquidity needs; legislative, political and competitive developments; the inherent risks involved in the digital currency and general securities markets; the volatility of digital currency prices and the additional risks identified in the "Risk Factors" section of the Company’s filings with applicable securities regulators. Intellistake has not yet developed or commercialized its AI solutions.

Completion of the SVH acquisition remains subject to completion of satisfactory due diligence, the negotiation, and execution of a definitive agreement ("Definitive Agreement") that will include representations, warranties, covenants, indemnities, termination rights, and other provisions customary for a transaction of this nature, no objection from the Canadian Securities Exchange, and shareholder approval of SVH, if required.

This report contains "forward-looking information" concerning anticipated developments and events related to the Company that may occur in the future. Forward looking information contained in this report includes, but is not limited to, all statements in respect of the Company's growth and development, the operations and business segments of the Company, support for decentralized AI and blockchain networks, the details of the collaboration with Orbit AI and its expected benefits; the Company’s contributions towards the collaboration with Orbit AI; the timelines for Orbit AI’s operation; and Intellistake’s strategy to support tokenized, decentralized AI infrastructure.

In certain cases, forward-looking information can be identified by the use of words such as "expects", "intends", "anticipates" or variations of such words and phrases or state that certain actions, events or results "may", "would", or "might" suggesting future outcomes, or other expectations, assumptions, intentions or statements about future events or performance. Forward-looking information contained in this report is based on certain assumptions regarding, among other things, the Company and Singularity Venture Hub (“SVH”) are satisfied with their respective due diligence; the Company and SVH enter into a definitive agreement for the transaction; the Company and SVH satisfy all conditions necessary to close the proposed transaction; the Company will continue to have access to financing until it achieves profitability; the Company is able to raise sufficient financing to complete the announced investment into Orbit AI; obtaining the necessary regulatory approvals; the technology and blockchain industries in which the Company intends to focus its business in will grow at the rate and in the manner expected; the ability to attract qualified personnel; the success of market initiatives and the ability to grow brand awareness; the ability to distribute Company's services; the Company creates strategies to mitigate risks associated with cryptocurrency price fluctuations; the Company and SVH remain compliant with all applicable laws and securities regulations and applicable licensing requirements; the Company engages and collaborates with local experts, as necessary, to address jurisdiction-specific matters and ensures compliance with foreign regulations to avoid penalties; the Company addresses any potential cybersecurity threats promptly and effectively; the ability of the Company to develop its technology, acquire customers and have revenue; the ability to successfully deploy the new business strategy as a result of the change of business. While the Company considers these assumptions to be reasonable, they may be incorrect.

Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results to be materially different from any future results expressed by the forward-looking information. Such factors include risks related to general business, economic and social uncertainties; the Company fails to raise sufficient financing to complete the announced investment into Orbit AI; Orbit AI is unable to raise sufficient financing to complete its launch of satellites on the timelines proposed or at all; technical risks associated with Orbit AI’s planned operations; failure of the Company and SVH enter into a definitive agreement for the transaction; failure of the Company and SVH to satisfy all conditions necessary to close the proposed transaction; failure to raise the capital necessary to fund its operations; inability to create strategies to mitigate the risks associated with cryptocurrency price fluctuations; the costs of regulation in the digital asset industries increase to the extent that the Company is no longer generating sufficient returns for shareholders; failure to promptly and effectively address cybersecurity threats; insufficient resources to maintain its operations on a competitive basis; and the actual costs, timing and future plans differs expectations; legislative, environmental and other judicial, regulatory, political and competitive developments; the inherent risks involved in the cryptocurrency and general securities markets; the Company may not be able to profitably liquidate its current digital currency inventory, or at all; a decline in digital currency prices may have a significant negative impact on the Company's operations; the Company's success may depend on the continued involvement of key personnel, including advisors, whose involvement cannot be guaranteed; institutional adoption of decentralized AI infrastructure remains uncertain and may not occur at the pace or scale anticipated; evolving regulatory frameworks, including those related to AI (such as Canada's proposed Artificial Intelligence and Data Act), may impose additional compliance burdens or restrict certain business activities; valuation figures are based on publicly available market data and internal assessments at the time of the referenced transactions and may not reflect current or future valuations; the volatility of digital currency prices; the inherent uncertainty of cost estimates and the potential for unexpected costs and expenses, currency fluctuations; regulatory restrictions, liability, competition, loss of key employees and other related risks and uncertainties; delay or failure to receive regulatory approvals; failure to attract qualified personnel, labour disputes; and the additional risks identified in the "Risk Factors" section of the Company's filings with applicable Canadian securities regulators.

Although the Company has attempted to identify factors that could cause actual results to differ materially from those described in forward-looking information, there may be other factors that cause results not to be as anticipated. Readers should not place undue reliance on forward-looking information. The forward-looking information is made as of the date of this report. Except as required by applicable securities laws, the Company does not undertake any obligation to publicly update forward-looking information.