Coinbase, Ripple, OKEx And Major Investors Back Securitize’s $13 Million Round A
According to the latest report, the US-based cryptocurrency exchange giant, Coinbase, through their VC branch, invested in the crypto-security startup platform, Securitize along with other big names including Ripple and OKEx.
The funding round was led by Blockchain Capital and also included Global Brain, and Ripple’s Xpring. The companies pooled a total of $12.75 million in the Series A round of fundraising.
Securitize revealed that investments were mostly made in fiat currencies, while those that came in form of cryptocurrencies will be converted to fiat.
Securitize is a platform which will be focused on tokenizing shares by putting blockchain technology behind them, which is said to be able to automatize a lot of processes and increase liquidity.
Securitize was founded by the ex-CEO of Telefonica’s R&D division, Carlos Domingo, who claims that his new project has the potential to disrupt the US securities market.
Domingo doesn’t just recognize the opportunity to work with blockchain companies, which he calls first movers. “The big opportunity is in digitizing private and public shares,” he stated when asked about his platform’s perspective.
Securitize is taking a new approach as it offers an all-in-one service to their clients – a technological framework to tokenize companies, regulatory management, smart contacts, and other services for investors. Domingo’s company will take their clients through to the point when they can launch their own compliant Digital Security Offering (DSO).
Domingo also stated that Securitize has, in order to provide the best possible service, worked with compliance lawyers in a few US States to ensure that businesses from all parts of the country could use their digital security system in accordance with the law.
“The goal of Securitize is to essentially tokenize shares to provide additional transparency, increased trading/liquidity, and more efficient processes,” said the founder of Securitize.
Investors will be able to trade equity more efficiently and transparently while providing a more clear tracking of cap tables, which is said to be “a messy business.”
Security tokens and where to trade them
Securitize is also looking to conduct the sale of its own security token, which is described as the most pressing matter, said to take place sometime next year. The prime prerequisite for that is, according to Domingo, that the company’s business starts to stabilize before making such a big step.
It is still unknown where those digital securities will be listed for trading, but Securitize’s founder stated his belief that 10-15 exchanges are going to compliantly offer these kinds of digital assets to their clients in 2019. He didn’t specify which trading platforms he had in mind, but he did reveal that Coinbase already made all the needed steps to be able to offer digital securities for trading to their customers.
The US security market is estimated to process roughly $7 trillion per year, and being among the first to offer new kind of technology is a halfway to success.
In 2018, securities based on blockchain technology have been talked about quite a lot, and there are some other players offering digitalization of security offerings in the market, such as Polymath, and Ravencoin project, which both provide platforms for security tokens issuance.
There is also a Swiss-based digital security promotional platform, Bloomio, which also offers a marketplace for startup equity trading.
Securitize is taking a step forward by offering a US regulatory compliance to their clients.
Now, it remains to be seen how DSOs will be accepted by the government, investors and the rest of the industry.
Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your own research and/or consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.