Cryptocurrency startup Swarm has opened up pre-funding of the Robinhood Equity Token on its platform.

Swarm is creating a unique market infrastructure built on blockchain technology that enables investing cryptocurrency into real assets and deploying traditional capital into crypto markets in a new way.

Swarm gives fund managers access to capital from a new class of investors who want access to institutional-type investments, but don’t have the high minimums many institutional funds require.

In its announcement, Swarm said accredited investors would now be able to reserve their stake in a fund created for the purpose of holding equity in Robinhood, a commission-free investing app that recently earned a $5.6 billion valuation.

While Robinhood itself is not holding any security token offering, Swarm has sourced equity through established relationships with former employees and other equity holders, and converted committed funds into RHET equity tokens, using the SRC20 standard.

Once the minimum funding goal is reached, a Swarm syndicate manager will form an entity to hold the equity.

Swarm responded by saying that the method used to obtain and tokenize the equity does not violate the purchase agreements signed by former Coinbase employees and other early investors.