The news emerged this week on Ripple and Coinbase. At the initial inspection, you might be a little excited in the hope that this means that XRP could see a list on the standard version of Coinbase, however it is still not the case. To give you some background, the XRP and Coinbase saga has continued for a long time, with many XRP investors keen to see XRP go live on the standard version of Coinbase to allow XRP to become a more mature asset and more highly negotiated. Going to live here will make the adoption of XRP a much more realistic concept.
So, no, Coinbase will not announce XRP on their standard platform yet, I'm sorry!
The news on Ripple and Coinbase are still positive and they see the support of a new idea from a team called Securitize. Securitize is a company based in the United States that is making the world of tokenizing more accessible to other companies. By working with Securitize, companies will be able to leverage their assets and securities for future sale via blockchain. This news comes after Securitize announced it has received a round of financing of over $ 12.75 million, including donations from Coinbase Ventures and the Ripple Xpring fund.
Currently based in the United States, Securitize wishes to continue its business and, as a result, these funds will be used to enable the company to expand into South America and the Asia Pacific regions, in order to start to provide services to companies based within these parts of the globe.
As stated, the key goal here for Securitize is to allow the tokenisation of titles, this is something that might seem a little familiar to Ripple. Of course, I'm not saying that XRP is a security, but many people in the industry believe that XRP is a security, but this is a debate for another video.
What is a security?
"Security is a negotiable and fungible financial instrument that holds some kind of monetary value, it represents a position of ownership in a publicly traded company (through shares), a creditor relationship with a government agency or a company (represented by the property) of this obligation), or property rights represented by an "option." The entity that creates the securities for sale is known as the issuer and those who purchase them are, of course, investors. securities represent an investment and a means by which municipalities, companies and other commercial enterprises can raise new capital ".
The purpose of this project is to help other companies transform their securities (and other assets) into a token that can exist and be traded on the blockchain. It is a sort of convergence between traditional stock exchange trading and cryptocurrency / blockchain.
Second Sludgefeed, Carlos Domingo, founder and CEO of Securitize, believes that the future of securities trading resides in blockchain technology:
"Carlos Domingo, who previously led Telefonica's R & D division, hopes that by transferring the securities to decentralized accounting books, they will be more transparent and controllable, and digitalization would also facilitate instant security transactions and make it unnecessary. current 2-day settlement period. "
Switching to the blockchain will help these companies exchange their securities more efficiently, allowing immediate and secure transactions away from traditional and slower securities exchange procedures.
With the support of Ripple and Coinbase, Securitize is starting to grow at an exciting rate and is actually planning to expand its operations on a global scale. We should also remember that although Securitize is a start-up, they have already been involved in a number of large companies, according to Sludgefeed:
"To date, Securitize has tokenised a number of companies, including 22x, SPiCE VC (Domingo's VC company) and Augmate, and its main investor, Blockchain Capital, has used the Securitize protocol for its BCAP security token The company refers to this process as a digital security offering (DSO). "
Investment by Coinbase and Ripple
We consider that the clear investment of Coinbase and Ripple here is not an accident, this move complements potential future plans to consider the titles and legality behind them. In short, we should expect that Ripple and Coinbase are not just silent investors in this, at least they will keep an eye on Securitize to see how their project can help with the future plans of Ripple and Coinbase.
Basically, we do not expect this to be the last we'll hear from Ripple or Coinbase about their investment in Securitize!