Feature
Feature
|
Traditional OTC / Crypto DEX
|
OTCM Protocol
|
24/7 Trading
|
✗
|
✓
|
SEC Compliant — Release No. 33-11412
|
✗
|
✓
|
KYC/AML Enforced on Every Transfer
|
✗
|
✓
|
1:1 Real Equity Asset Backing
|
✗
|
✓
|
Liquidity Withdrawal Impossible
|
✗
|
✓
|
No Market Maker Required
|
✗
|
✓
|
Global Accredited Investor Access
|
✗
|
✓
|
SEC-Registered Custodian
|
✗
|
✓
|
3. The Technology — Nine Layers. One Mission.
|
OTCM Protocol is built on Solana — 65,000 transactions per second, near-zero fees (~$0.00025 per transfer). Our platform adds nine specialized layers, each solving a specific part of the compliance and liquidity problem.
Layer
|
Name
|
What It Does
|
Layer 1
|
Solana Foundation
|
65,000 TPS settlement layer · ~400ms finality · the only chain with native Transfer Hook support
|
Layer 2
|
Transfer Hooks — 42 Controls
|
42 security controls enforced atomically inside the Solana runtime on every ST22 transfer — mathematically impossible to bypass
|
Layer 3
|
Global Unified CEDEX Liquidity Pool
|
Single protocol-owned liquidity pool shared by all ST22 issuers · funded by OTCM Treasury + staking reinvestment · LP tokens burned — withdrawal impossible
|
Layer 4
|
Custom AMM Engine
|
Purpose-built CPMM with u128 arithmetic for compliant Digital Securities — no rounding attacks
|
Layer 5
|
CEDEX Exchange
|
The only trading venue where SPL Token-2022 Transfer Hook compliance is preserved on every trade
|
Layer 6
|
Oracle Network
|
Real-time: 1:1 custody attestation, OFAC sanctions, AML scoring, TWAP price data, EDGAR intelligence
|
Layer 7
|
Protocol Governance
|
3-of-5 multi-sig (adjustable params) · 5-of-9 multi-sig (upgrades) · 42 Transfer Hook controls immutable
|
Layer 8
|
Wallet Infrastructure
|
Native iOS/Android securities wallet · KYC/AML at onboarding · Ledger/Trezor hardware wallet support
|
Layer 9
|
Predictive AI Module
|
Scans 15,000+ OTC companies daily · IDOS scoring · identifies accredited investors · XGBoost ML engine
|
Every ST22 token transfer triggers Transfer Hook controls that execute inside the Solana runtime before the transaction completes. These are not policies — they are protocol invariants. Any control failure auto-reverts the entire transaction. There is no bypass path.
Control Category
|
What It Enforces
|
Identity & Compliance (Controls 1–15)
|
KYC status · accreditation verification · AML risk scoring · OFAC/SDN screening · Empire-verified wallet whitelist
|
Market Integrity (Controls 21–26)
|
Circuit breaker (>10% move in 5 min) · 2% price impact limit · velocity limits · Rule 144 holding period (Control 24)
|
Custody Verification (Controls 27–30)
|
1:1 token-to-share attestation verified every ~400ms via Empire Stock Transfer oracle
|
Governance & Regulatory (Controls 31–42)
|
Multi-sig parameter governance · regulatory compliance freeze (Control 42 — CLOLegal Counsel authorization required) UPDATED V8
|
4. The Market Opportunity
|
Market Segment
|
Estimated Trapped Value
|
U.S. OTC Expert Market (no quotes published)
|
$25–$30 Billion
|
U.S. OTC Grey Market (no market maker)
|
$10–$15 Billion
|
International Illiquid Securities
|
$15–$20 Billion
|
Total Addressable Market
|
$50+ Billion
|
OTCM Protocol charges a 5% fee on every ST22 Digital Securities transaction — applied identically at both the primary offering phase (Reg D capital raise) and all secondary market trading on CEDEX. There are no subscription fees, listing fees, or access fees.
Fee Component
|
Rate
|
Mechanism
|
Global Unified CEDEX Liquidity Pool
|
0.44% of each transaction
|
Permanently locked by immutable Transfer Hook — not withdrawable by any party ever
|
OTCM Protocol platform revenue
|
4.56% of each transaction
|
Funds infrastructure, compliance, development, and staking rewards
|
Issuer secondary market share
|
None
|
Issuers receive 95% of primary raise proceeds only — no ongoing secondary fee share
|
Year
Year
|
ST22 Issuers
|
Annual Volume
|
Protocol Revenue (5%)
|
Year 1
|
50
|
$182.5M
|
$9.1M
|
Year 2
|
200
|
$730M
|
$36.5M
|
Year 3
|
500
|
$1.83B
|
$91.3M
|
Year 4
|
1,000
|
$3.65B
|
$182.5M
|
Year 5
|
2,000
|
$7.30B
|
$365.0M
|
Issuer Pays
|
Issuer Receives
|
$1,000–$25,000 one-time ST22 minting fee
|
Permanent, compliant, 24/7 secondary market on CEDEX for shareholders
|
SeriesCommon MB Preferred Sharesshares custodied at Empire UPDATED V8
|
95% of primary Reg D offering proceeds in USD (5% fee deducted at close)
|
15–21 business days onboarding timeline
|
Access to Empire Stock Transfer’s full KYC/KYB/AML investor onboarding infrastructure
|
5. Regulatory Posture — Embrace, Don’t Evade
|
OTCM Protocol’s competitive advantage is radical regulatory transparency. While other crypto projects try to avoid securities classification, we built our entire architecture around it. ST22 Digital Securities are formally classified as securities under federal law from inception.
SEC Release No. 33-11412 (March 17, 2026) · SEC Joint Staff Statement (January 28, 2026)
“The format in which a security is issued or the methods by which holders are recorded (onchain vs. offchain) does not affect application of the federal securities laws.”
These statements directly validate OTCM Protocol’s SEC Category 1 Model B architecture: Empire Stock Transfer maintains the authoritative master securityholder file; the Solana blockchain serves as the operational notification layer.
|
Regulatory Framework
|
OTCM Protocol Implementation
|
SEC Category 1 Model B
|
Empire Stock Transfer = authoritative master securityholder file · Solana = notification layer
|
Release No. 33-11412 — Digital Securities
|
ST22 tokens formally classified as Digital Securities — the authoritative classification governing all CEDEX trading
|
RegulationReg D Rule(US 506(c)accredited investors)
|
Primary offering to verified accredited investors · general solicitation permitted · Form D within 15 days UPDATED V8
|
RegulationReg S (non-US investors)
|
Non-U.S. investor offshore transaction framework · 12-month compliance period enforced by Transfer Hook Control 24 UPDATED V8
|
Bank Secrecy Act / AML
|
Full KYC/KYB/AML at investor onboarding by Empire + Chainalysis KYT + TRM Labs on every transfer
|
OFAC Sanctions
|
Real-time three-layer SDN screening on both counterparties to every ST22 transfer
|
Transfer Agent Regulation
|
Empire Stock Transfer (SEC §17A registered) holds custody · OTCM Protocol holds no investor assets directly
|
6. The Team — Built by People Who Lived the Problem
|
Name
|
Title
|
Role
|
Berj Abajian
|
CEO
|
Protocol vision, strategy, and investor relations
|
Patrick Mokros
|
COO · President, Empire Stock Transfer
|
Operations, partnerships, platform growth, and investor onboarding authority
|
Frank Yglesias
|
CTO
|
Technology architecture, Solana development, Transfer Hook infrastructure | Legal Counsel | Legal |
Counsel
Jeff Turner
|
CLO — JDT Legal
|
Legal framework, Reg D/S compliance, SEC Crypto Task Force engagement, country-specific rollout UPDATED V8
|
John Morgan
|
VP of Issuer Services
|
Issuer onboarding, ST22 launch process, issuer relationship management
|
Partner
Role |
Partner
|
Role
|
Empire Stock Transfer
|
SEC-registered transfer agent and qualified custodian · sole investor onboarding authority · authoritative master securityholder file
|
Helius RPC
|
Dedicated Solana RPC cluster · sub-400ms oracle sync · real-time WebSocket state feeds
|
Chainalysis KYT + TRM Labs
|
AML blockchain analytics · 200+ feature ML risk scoring on every wallet and transaction
|
Pyth Network
|
High-frequency on-chain price oracles · manipulation-resistant TWAP data for circuit breakers
|
Jito Labs
|
MEV protection · private transaction bundle submission · eliminates sandwich attacks on CEDEX
|
Certora
|
Formal verification of six mathematical invariants pre-mainnet (no unauthorized minting, 1:1 backing, etc.)
|
7. Roadmap — From Beta to Global Infrastructure
|
Beta Validation Complete — 3 issuers · $7M+ in liquidity processed · Mainnet launch targeting Q2Q3 2026 (April/May) UPDATED |
V8
Phase
|
Timeline
|
Key Milestones
|
Phase 1 — Launch
|
Q2Q3 2026
|
Mainnet · CEDEX live · First 10 ST22 Digital Securities listings · OTCM STO ($20M Reg D/S) · Empire onboarding live UPDATED V8
|
Phase 2 — Growth
|
Q3–Q4 20262026–Q1 2027
|
100+ issuer listings · UK/EU/UAE expansion · NASDAQ listing (GROO) strategy · CEX listings for OTCM Security Token UPDATED V8
|
Phase 3 — Expansion
|
20272027–2028
|
Reg A+ retail pathway · 1,000+ issuer target · Wormhole cross-chain bridge · Reg S global rollout UPDATED V8
|
Phase 4 — Scale
|
2027–20282028+
|
Global Perpetual Market Infrastructure · EVM compatibility layer · every illiquid security on earth has a permanent market
|
The OTCM Security Token is a 100% security token backed 1:1 by Series “S” Preferred Shares held at Empire Stock Transfer — not a utility token, not a meme coin.
Parameter
|
Details
|
Total Supply
|
1,000,000,000 OTCM tokens
|
Token Price
|
$0.02 per token
|
Offering Size
|
$20,000,000 (Reg D Rule 506(c) / Reg S) UPDATED V8
|
Minimum Investment
|
$5,000 USD
|
Backing
|
1:1 Series “S” Preferred Shares · Empire Stock Transfer custody
|
Listing Venues
|
Traditional centralized exchanges (Binance, Kraken, Coinbase) — NOT DeFi liquidity pools
|
Digital Securities Classification
|
SEC Release No. 33-11412 · Category 1 Model B
|
8. Why OTCM Wins — The Competitive Moat
|
Moat
|
Why It Is Defensible
|
Transfer Hook Architecture
|
External DEXs (Raydium, Orca, Meteora) disable Transfer Hooks — they literally cannot support ST22 tokens. CEDEX is the only compliant venue. This is architectural, not contractual.
|
First-Mover Regulatory Clarity
|
Release No. 33-11412 and the Category 1 Model B framework are new (2026). OTCM is already built to them. Competitors start from zero.
|
Permanent Liquidity Lock
|
Global Unified CEDEX Liquidity Pool LP tokens are burned at initialization. No party — including OTCM Protocol — can ever withdraw this capital. Mathematical guarantee, not policy.
|
EDGAR Data Moat (Layer 9 AI)
|
Years of EDGAR + OTC Markets data creates a proprietary IDOS scoring model that compounds with every new issuer. Cannot be bought or replicated without equivalent operating history.
|
Empire Stock Transfer Integration
|
Exclusive SEC-registered transfer agent providing legal certainty that self-custody models legally cannot achieve. Patrick Mokros serves dual roles as OTCM COO and Empire President.
|
SEC Category 1 Compliance Architecture
|
OTCM Protocol does not compete with Raydium, Orca, or Uniswap. Those platforms serve fungible commodities. OTCM serves regulated Digital Securities that those platforms legally cannot support.
|
If your company’s shares are illiquid, trapped, or trading in the OTC grey or expert market, OTCM Protocol can create a permanent, compliant trading market for your shareholders in days — not months.
• Investment:Investment: $1,000–$25,000 USD one-time ST22 minting fee · issuer receives 95% of primary raise proceeds in USD
• Timeline:Timeline: Onboarding to live trading in 15–21 business days
• Requirements:Requirements: SEC-registered entity · Empire Stock Transfer as custodian · KYC/AML verification by Empire
• Contact:Contact: frank@otcm.io · · invest@otcm.io
Access a new asset class: tokenized equity securities in companies that traditional markets abandoned. Trade 24/7 with mathematical protections traditional exchanges cannot provide.
• Eligibility:Eligibility: Accredited investor verification by Empire Stock Transfer required for U.S. participants
• Download the OTCM Wallet (iOS / Android) to get started
• Trade on CEDEX at cedex.otcm.io
Channel
Address |
Channel
|
Address
|
General / Investors
|
invest@otcm.io
|
Issuer Applications
|
frank@otcm.io
|
Corporate Website
|
otcm.io
|
Technical Whitepaper (V7.V8.0)
|
otcm.io/whitepaper
|
OTCM Issuers Gateway
|
otcm.me
|
CEDEX Trading
|
cedex.otcm.io
|
Company Address
|
12 Daniel Rd East, Fairfield, NJ 07004
|
SEC EDGAR CIK | 1499275 | ·
1499275 · Ticker: GROO
|
© 2026 Groovy Company, Inc. dba OTCM Protocol. All rights reserved.
Open Source · · Public Domain · · Free to Distribute · · Version 7.8.0 · · Wyoming Corporation · · CIK: 1499275
|
Disclaimer
This document is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. ST22 Digital Securities are offered exclusively to verified accredited investors under SEC RegulationReg D Rule 506(c) and Release No. 33-11412. Investment in Digital Securities involves significant risk, including possible loss of the entire investment. Groovy Company, Inc. dba OTCM Protocol is a Wyoming Corporation (CIK: 1499275). UPDATED V8
|
|
|
|
|
|
