A number of high-profile companies within the cryptocurrency space have invested in Securitize, a primary issuance platform for asset-backed security tokens on the blockchain.
The startup raised $ 12.75 million in a Series A round of financing led by Blockchain Capital, a company based in San Francisco. Coinbase Ventures, Ripple, NXTP and Global Brain Corporation have also invested.
Securitize CEO: 10-15 exchanges for the exchange of security tokens legally in 2019
Securitize uses its own Digital Securities Protocol (DS Protocol) to focus on the security token space, including collaboration with crypto-exchange, broker-dealers, custodians, escrow services and other infrastructures, to help companies create tokens of blockchain-based security.
According to Owler, the community-based competitive insight platform, the startup founded by CEO Carlos Domingo, Tal Elyashiv and Jamie Finn annually produces $ 1 million in revenue.
The investment will help accelerate the development of the company platform and new partners, experts in cryptographic space, will provide guidance as the start prepares itself to tokenize itself, said Domingo.
"Not only will they provide support for Securitize as we will continue to operate at the highest level of our industry, but they will also be instrumental as we prepare to tokenise Securitize for our offering of digital securities," said Domingo.
Global Brain, a Tokyo-based venture capital firm, will help Securitize expand into Asia. The NXTP fund in Latin America will contribute to business development in the region and Blockchain Capital has secured its co-founder and managing partner Brad Stephens on the Securitize Board of Directors.
"I am thrilled to be both a client and an investor and help them lead the emergence of the security token industry," he added.
Brian Armstrong, CEO of Coinbase, had admitted that the exchange was trying to be a de facto market to buy and exchange encrypted securities.
The emergence of Securitize can help realize the dream of tokenize actions with blockchain to provide greater transparency, liquidity and efficiency. Securitize will be responsible for developing tokens and regulatory compliance in a process called "Digital Security Offering". The cryptocurrency exchanges, in particular Coinbase, will still have a role as trading platforms.
Securitize Domingo, CEO, explained in an interview that is not obsessed with the decentralization of everything, but that distributed register technology is a "better way to manage securities".
"The opportunity is not just to work with blockchain companies, these are the first engines, but the great opportunity is in digitizing private and public shares. […] 2019 will be the year you will see 10-15 securities trades legally, "he added.
Airswap launched Securitize's Digital Securities Protocol at the start of this month. The startup says it is close to reaching agreements with other digital securities markets such as Hyperion, Tzero, Sharespost and Blocktrade. Domingo believes that the exchanges of cryptocurrencies that become public, with the issue of digital titles, will be a crucial moment for the ecosystem.
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