Securitize raised $12.75 million in its Series A round, with Blockchain Capital leading the investment and Coinbase Ventures, Global Brain, NXTP, and OK Capital participating. The company aims to toke
Securitize raised $12.75 million in its Series A round, with Blockchain Capital leading the investment and Coinbase Ventures, Global Brain, NXTP, and OK Capital participating. The company aims to tokenize the $7 trillion securities market.
Brad Stephens, managing partner at Blockchain Capital, will join Securitize's board. The platform plans to launch its Digital Security Offering in 2019.
The funding comes as regulators examine digital assets more closely. The SEC announced this month that "any entity that provides a marketplace for bringing together buyers and sellers of securities, regardless of the applied technology, must determine whether its activities meet the definition of an exchange under the federal securities laws."
Carlos Domingo, Securitize's CEO, said the industry must prioritize compliance. "The burden is on us in the industry to develop products and services that ensure regulatory compliance both here in the USA and in countries where investors are investing in, and trading digital securities," he said.
Securitize highlights its existing traction. The company claims its Digital Securities Protocol has "the highest adoption rate in the market today and provides a seamless compliant integration solution for issuers, investors and exchanges throughout the entire digital security lifecycle, from initial issuance to trading, distribution, and governance."
AirSwap and the OpenFinance Network both trade digital securities on the protocol. Securitize lists 22x, Augmate, Blockchain Capital, and SPiCE VC among its digital security issuers—all venture firms in the blockchain space.
Yasuhiko Yurimoto, CEO of Global Brain, framed the investment as validation. "In our view, Securitize's end-to-end digital securities issuance and compliance platform will play a key role in the development of the security token market," Yurimoto said. "We are excited to work with Securitize to set up a presence in Japan and leverage its network to assist the company in penetrating the Japan/Asia market."
Domingo sees opportunity ahead. As new digital security exchanges and marketplaces launch, he expects "the opportunities for investors will be unlike anything seen before in the asset-backed securities markets."