Vermont has laid the foundation for a new type of business enterprise based on the emerging financial technology known as blockchain.
The law S.269, which Gov. Scott signed into law in May, is designed to encourage the emerging technology by creating two types of limited-liability companies based on blockchain technology.
The first company to take advantage of this new law has registered in Vermont.
Trace LLC, a Burlington company, became a blockchain-based limited-liability company (BBLLC) on July 1, amending its business registration with the Secretary of State’s Office to use the technology for a material part of its business activities, including development, sale, use or promotion of software, applications, internet sites or digital assets that use or incorporate blockchain technology, or any other legal purposes.
The amended registration lists one of the principals as Paul Lintilhac of Brooklyn, New York.
“That company with our help has been monitoring these regulatory developments in Vermont for a while,” said David Thelander, a lawyer with the Burlington firm of Gravel & Shea. “And frankly we just think it really demonstrates the hard work the Vermont Legislature and the governor’s administration in succeeding in attracting blockchain innovative industries to Vermont.”
Described as a distributed ledger or database, blockchain is viewed as a more transparent and far more secure way of transacting business online than if that database was stored in one location.
