Embedding Derivatives into Cap Table Platforms
Javier Avalos, co-founder and CEO of Caplight, on building synthetic derivatives of private stock
The strategic prize is distribution, not just product. Caplight can build sophisticated hedging and structured exposure for private stock, but plugging those tools into a platform like Carta, Forge, or Nasdaq matters because those platforms already own the daily workflow around cap tables, tenders, transfers, and employee equity decisions. That turns derivatives from a niche institutional trade into an add on that appears exactly when a shareholder, broker, or CFO is already trying to solve a liquidity or risk problem.
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Caplight started with institutional investors, covered calls, protective puts, and fast settling synthetic contracts because direct private share transfers are slow and failure prone. Embedding into an existing platform is the shortcut from a specialist desk tool to a mainstream workflow product.
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Carta and Nasdaq built engagement by owning the system of record and issuer workflow. They already handle cap tables, tender logistics, transfer approvals, and option exercise financing. That makes them natural insertion points for downside protection, financing, or packaged products tied to private stock exposure.
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The market keeps splitting by customer. Forge and EquityZen help buy and sell actual shares. Nasdaq and Carta help companies run controlled liquidity events. Caplight sits one layer above that, letting financially motivated investors trade economic exposure without moving stock, which is why partnership is more logical than head on competition.
The next step is private market platforms becoming more like public market stacks. The winners will combine record keeping, pricing data, transaction execution, and risk products in one place. As more shareholders expect not just liquidity but hedging, financing, and portfolio management, synthetic products should move from specialist infrastructure into a standard feature of mature private market platforms.