A compliance platform for blockchain-powered digital securities ‘Securitize Inc’ has secured $12.75 million in a Series ‘A’ funding round.
Securities such as stocks, tokens, bonds and digital currencies such as Bitcoin can be securely represented by deploying digital ledger blockchain technology. Companies using blockchain technology need a way to follow the local laws and regulations pertaining to the representation of the securities.
Securitize provides an ecosystem architected around code compliance for exchanging digital securities as well as allowing investors and issuers an easy way to audit. The ecosystem has a protocol for managing, issuing, and tracking securities that are secure and trustworthy for customers as well as third parties like regulatory agencies.
The new funding round, Series A, was led by Blockchain Capital LLC. The round was joined by Coinbase Ventures, OK Blockchain Capital, and the Xpring fund at Ripple Labs, Global Brain, and NXTP. The funding round will be flowed by a process called Digital Security Offering that the company intends to launch in 2019. The process is focused on helping businesses issue and distributes securities as tokens on the digital ledger technology to raise funds.
Securitize, however, does not run an exchange and involved in the trading in any form. Securitize, in fact, provide the platform and fundamental protocols that need to be assisted with the regulatory bodies and administration for secured tokenization. The platform will enable the company to digitize its processes and begin issuing its own securities.
A burden is being felt by the company for the need to come up with innovative products and services that are in compliance with regulatory bodies of the US and other countries, said the co-founder and chief executive of Securitize, Carlos Domingo.
The platform is architected to consider the complete structure of the digital securities including its ownership and information beyond issuance, the goal of the stakeholders, investors and of that of exchanges, as per the whitepaper of Securitize.
The company intends to prepare the platform to be able to provide a reference implementation of its protocol through its DS Issuance platform. It has also come to light that the platform deploys a programmable smart contract to enable distributed app or DApp, a kind of development that is likely to encourage trade of token on the Ethereum blockchain.
The Ethereum blockchain is regarded as the second most preferred blockchain in the world. The blockchain is focused on the development of application and business. This is one of the many reasons for growing popularity among the app developer working toward providing tokenized services.
The company believes that the token industry and securities have a market share of more than $7 trillion as a worldwide industry. The token, in fact, has the scope of growth as it can be deployed by any country. Domingo, in an interview with CoinDesk, said that the tokenization of legacy securities industry is taking place in global front. The company intends to expand its global presence, especially from Latin America to the Asia Pacific Region and to other parts of the world where business development is possible.