Permuto Capital Leadership Team
Permuto Capital is on the verge of launching a groundbreaking investment product that aims to revolutionize how investors approach equity securities. This innovative offering seeks to separate dividend payments from the overall equity value of common stocks. Utilizing an optional blockchain framework based on the Chia blockchain, these new financial products are expected to draw interest from a diverse group of investors looking for fresh avenues to enhance their portfolios. The initial concept was detailed in the publication “Dividend Alchemy: Unbundling Microsoft’s Equity With Blockchain.”
Product Summary
On February 28, 2025, Permuto Capital made a notable advancement by submitting two new registration statements for products linked to the common equities of Apple (AAPL) and Broadcom (AVGO), complementing an earlier filing for Microsoft (MSFT). This innovative financial structure divides a common share into two separate, tradable entities: a “Dividend Certificate,” which grants the holder rights to dividend payments, and an “Asset Certificate,” which encompasses all other value. The Dividend Certificates are designed to be a capital-efficient source of income with favorable tax implications for dividends, making them appealing to retirees, pension funds, insurance firms, and other investors focused on cash flow. Conversely, the Asset Certificates are projected to trade with “natural leverage,” assuming the dividend segment maintains a consistent value based on expected future cash flows.
Financial Innovation
While the idea of decoupling dividends from other financial aspects of a common share is not entirely new to the financial industry, Permuto Capital’s method is distinctive. They are creating an accessible structure that democratizes this investment strategy, which has traditionally been limited to large institutional investors engaging in complex trades. The straightforward nature of the Permuto solution is noteworthy: each certificate is fully backed 1:1 by shares held in a trust, avoiding convoluted financial constructions or synthetic elements. The trust-based approach allows for ongoing access to certificates without the time constraints seen in synthetic instruments, enabling investors to buy, sell, or return certificates for the underlying common shares seamlessly.
Blockchain Technology for Cost Reduction
Permuto Capital is planning to list both types of certificates on a national stock exchange, with the Depository Trust Company (DTC) providing custody services for investors using conventional trading platforms. However, those interested in optimizing their returns can choose to hold their certificates as Chia Asset Tokens (CATs) on the Chia blockchain, which facilitates cost-effective distribution of dividends. Holders of CATs are expected to receive a larger portion of dividend payouts compared to those with DTC-held certificates, as Permuto will pass on the savings generated by utilizing blockchain technology. Additionally, the Chia blockchain allows for continuous trading on decentralized markets, free from the interruptions that can occur on traditional exchanges, potentially offering a more economical trading experience.
Looking Forward
As the regulatory process advances for the products linked to Microsoft, Apple, and Broadcom, Trent Martensen, Co-CEO of Permuto Capital, expressed their determination, stating, “We have no intention of slowing down and expect to be filing additional registration statements for more trusts in the coming weeks.” The introduction of the Permuto Dividend and Asset Certificates could mark the emergence of a new asset class available to the public, the first significant development since Bitcoin. By effectively distinguishing two elements of publicly traded stocks, this straightforward concept may unlock new demand from investors, as the individual components cater to specific requirements and allow for more tailored portfolio management. As Permuto Capital continues to innovate within the financial sector, the investment landscape may undergo transformative changes.
