As the financial landscape evolves, so do the ways in which businesses raise capital and manage global transactions. With the rise of blockchains, AI, and a growing appetite for private markets, traditional banking no longer has a monopoly on innovation.
I spoke with Charlie Thwaytes, co-founder of Thwaytes Capital, about how his firm is positioning itself at the intersection of currency strategy and digital finance. From supporting cross-border deals to exploring the future of tokenized equity, Charlie shared insights into where private capital is heading, and how startups can make the most of it.
Q: Tell me about your background and how you came to co-lead Thwaytes Capital.
I began my career in sales at a regulated firm in London. Then I moved to the Treasury Department, where I learned a lot about settlements and currencies across high-volume deals.
I spent four years there, mostly focused on helping companies handle cross-border transactions more efficiently. I came to realize that there was a gap in the market: high-net-worth individuals and mid-market businesses needed a tailored, relationship-driven alternative to banks, online platforms, and large brokers.
So in 2021, my co-founder JP and I set up Thwaytes Capital to offer seamless global currency services, combining cutting-edge technology and our strategic knowledge.
Over time, we’ve evolved beyond currency, and we’re now building a new platform to tokenize equity for businesses. We’ll help them raise capital, list on digital exchanges, and manage shareholding, dividends, and voting via tokens. We’ll also expand into real estate and alternative investing.
Our core mission is to give our clients control, clarity, and confidence in global financial transactions.
Q: Can you give an example of how someone would interact with Thwaytes Capital?
Generally, the inquiries we get are about complex deals or cross-border currency hurdles.
For instance, a company with a cross-border purchase order or selling overseas might want to lock in currency rates for a certain period. Prices fluctuate daily, so if they’ve agreed a price with an overseas buyer, they don’t want their profit margin eroded by a fluctuating exchange rate. Over a long project, they can book a currency forward, essentially locking in their margins.
Q: You mentioned tokenizing equity. Can you explain that for someone unfamiliar with the term?
At the moment, it’s not a top priority, because the market isn’t ready for it yet. But for startups, tokenizing assets or shareholding will enable them to build in smart contracts that include employee share schemes, options, and legal rights, embedded directly into tokens that go onto the blockchain.
It will mean that businesses can scale more efficiently, whether they’re starting up or delisting. As AI and blockchain converge, tokenizing will likely become the default for new businesses.
Q: Would giving share options and restricted stock units (RSUs) be an example of tokenizing equity?
Yes, the offerings will be the same; they’ll just be more automated and easier to implement within the share structure.
The way IPOs are currently structured means they only really work for certain businesses, because they’re very expensive. Tokenization is going to allow businesses to raise money privately, like with crowdfunding platforms. Then, if they want to list those tokens on a public digital exchange, the costs will be about 10% of what they are now.
Q: So, a tech company has two ways to cash in at the moment: get acquired or go public. But in the future, they would be able to sell shares or tokens privately?
Exactly. Via a secondary private market, which allows any verified AML or KYC investor to participate. But if any of those companies later want to go public on certain exchanges, they can use these tokens to access the public market.
It also addresses the incidence of startups offering employees shares that can end up being worthless or highly taxed. We’re developing smart contracts tailored specifically for startups, because transparency should be a given.
Q: What’s the biggest change you’ve noticed lately in how M&A teams approach cross-border deals?
Advisors are becoming more aware of the currency side of deals, and it’s starting to become a strategic lever. We’re being brought in at the front end of deals to negotiate bespoke currency strategies tailored to that transaction.
We want to get more involved with M&A bankers so that we can convince them they need to consider FX during negotiations.
I’ll give you an example. Earlier this year, a US company agreed to purchase a UK firm for $80 million when the exchange rate was 1.26, so that was around £63.5 million. But they didn’t lock in the exchange rate, and it went up to 1.34, so the deal is now almost £4 million more expensive. Either the buyer or the seller is going to have to make up that difference.
Q: How long does it typically take between agreeing a deal and sending the funds?
It varies, but for a straightforward private company deal for cash, once the letter of intent is signed and the price agreed, it usually takes around 2-4 months to send the money.
So, if it’s cross-border, there has to be some kind of currency fix. It’s a big gamble, or just plain stupid, not to lock in a rate after signing the contracts. Though I would put it more tactfully if we were invited to the start of negotiations!
Q: Do you think dealmakers do enough to manage FX exposure?
No, they don’t. The priority is still just getting the deal done. To be fair to the advisors, it’s down to the buyer or the seller to think about it and talk to a currency broker or even their bank. But when the client’s focused on the deal, FX gets left out, and that’s why we try to ensure we’re in the room when a cross-border deal is being done.
Q: With IPO markets still quiet, are you seeing more interest in alternatives?
Definitely. Over the past 12-18 months, we’ve seen more joint ventures and M&A activity, especially with interest rates up and the higher cost of borrowing. That’s led to more creative deal structures; structured equity or earn-outs, designed to reduce upfront cash requirements.
For instance, we worked with an overseas-listed firm acquiring a UK private company. The seller had two risks to manage: the currency their shares were denominated in, and the share price itself.
We don’t get involved in the equity valuation, but we can help them manage the FX exposure, especially when there are restrictions on how and when they can sell those shares. For instance, if they can only sell 20–30% of their holdings per year, we look at forward hedging over a 6-month to 2-year window to help lock in value and manage cash flow predictability.
There’s also a real marketplace emerging in the private secondary market — and increasingly, that’s dovetailing with tokenization.
The old dream of building a startup, raising £10 million, and listing on the stock exchange is changing. The future looks more digital and more decentralized. I think we’ll see more semi-public marketplaces and tokenized equity because it gives companies options that weren’t available before.
