securitize, a San Francisco-based startup that assists companies with tokenizing resources and traditional securities, closed a $ 12.75 million series A round led by Capital Blockchain, with considerable participation from Coinbase Ventures and Ripple's Xpring Fund.
According to a declaration provided at CoinDesk, the funding will be used to build the Securitize engineering team and expand the geographical coverage of the company from Latin America to the Asia-Pacific region and other parts of the world. The company is currently trying to hire developers for his office in Israel, as well as several regional development managers for various geographic areas.
CEO and founder Carlos Domingo, which in the past led Telefonica's R & D division, hopes that, through the transition of titles to decentralized registers, they will be more transparent and controllable. Digitization would also facilitate instant security transactions and make the current 2-day settlement period unnecessary.
"Blockchain seems to be a better way to manage the titles", Domingo said TechCrunch. "The great opportunity is in the digitization of private and public shares".
To date, Securitize has tokenised a number of companies, including 22x, SPiCE VC (Domingo's VC company) and Augmate. Its main investor, Blockchain Capital, also used the Securitize protocol for its BCAP security token. The company refers to this process as a digital security offering (DSO).
Investment appears to be strategic for Coinbase and Ripple, as both companies are currently facing aspects of US securities laws from several points.
While Coinbase is currently pursuing United States regulatory approval to list the digital resources that are classified as securities on its trading products, Ripple and its community are in constant and continuous with respect to the possible categorization of XRP as security.
While the company does not intend to build a trading platform, focusing instead on the framework of tokenization, the Serie A will probably open the door to more exchange partnerships going forward.
OK Blockchain Capital, Global Brain and NXTP also participated in the investment round. Also, co-founder of Blockchain Capital Brad Stephens he will be joining Securitize's board of directors, according to CoinDesk.
Other: Coinbase, others invest $ 12.75 million in the project to create "digital security offers"
Interesting: the startup supported by Coinbase launches $ 799 PoW / PoS Crypto Miner
Disclaimer: the author of this article has participations in cryptocurrency that may be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct due diligence before making investments.