In a significant development for decentralized finance (DeFi), Across Protocol is considering a move to convert its ACX token into equity. In an effort to comply with U.S. securities regulations and attract institutional investment, Across Protocol has proposed the creation of a new U.S. C-Corp entity, AcrossCo. This move would give ACX holders the option to exchange their tokens on a 1:1 basis for shares in AcrossCo or to redeem for USDC, based on a 30-day average price of the token.
This proposal represents a pioneering approach to blending decentralized autonomous organization (DAO) governance with traditional corporate structures, aiming to cater to both larger investors and smaller token holders. Larger ACX holders would directly swap for equity, while smaller holders could leverage a special purpose vehicle (SPV) without cost. The pivot to a C-Corp aims to address concerns regarding enforceable contracts, reduced counterparty risk, and the lack of legal clarity that can hinder institutional adoption.
With $51 million raised in prior funding rounds and an aim to maintain a degree of decentralization, Across Protocol's strategy could set a precedent for other DeFi entities seeking the security of traditional capital structures while retaining blockchain's innovative governance. The DeFi community is now poised to observe whether the transition from a pure token model to a hybrid of tokens and equity will be met with approval by stakeholders and the broader market.
