Coinbase, the leading cryptocurrency exchange, and Ripple, the second largest cryptocurrency firm, are backing Securitize, a security token platform.
Firm Secures Series A Funding
Securitize, a San Francisco-based startup that helps companies to tokenize their assets and securities, has secured $12.75 million in funding.
The series A round was led by Blockchain Capital with participation from Coinbase Ventures and Xpring Fund, Coinbase’s and Ripple’s investment arms.
The development was reported recently, and the startup aims to tokenize the $7 trillion securities industry.
The firm calls its service as a digital security offering (DSO).
It is reported that Securitize intends to use the capital raised to build the firm’s engineering team and expand operations across different geographies including Latin America and the Asia Pacific.
The company is scouting for developers for its Israel office and regional development managers for multiple locations.
CEO and founder Carlos Domingo believes that moving securities on the blockchain will bring transparency. In his opinion, the transition will also facilitate instant transactions and faster settlements. He says:
Blockchain just happens to be a better way to deal with securities. The big opportunity is in digitizing private and public shares.
The list of companies that the firm has worked with to tokenize their securities includes 22x, SPiCE VC (Domingo’s VC firm), and Augmate. Blockchain Capital has also used the firm’s protocol for its BCAP token.
Strategic Investment from Coinbase and Ripple
Both Coinbase and Ripple are dealing with aspects of U.S. securities laws for their respective businesses. Coinbase intends to obtain regulatory approval to list security tokens on its platform whereas Ripple has been evaluating the possibility of being categorized as a security.
So, this investment from both firms seems to be strategic in nature. It is reported that the current focus of Securitize is mainly going to be on its tokenization framework and not on building its own trading platform.
However, it is expected that the firm may soon partner with multiple exchanges. OK Blockchain Capital, Global Brain, and NXTP also participated in this funding round. Blockchain Capital co-founder Brad Stephens will be joining the firm’s board of directors.
Earlier, Live Bitcoin News reported about leading South Korean exchange Bithumb’s partnership with a U.S. fintech firm, Series One, to launch a security token exchange in America.
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