SEC Approves Blockchain Based Digital Securities Platform Securitize As A Registered Transfer Agent
A new blockchain startup called Securitize has been recently approved as a transfer agent by the U. S. Securities and Exchange Commission (SEC). This means that the company will now be able to act as an official keeper for records involving ownership changes in securities.
According to the CEO of the company, Carlos Domingo, this means that the new team will be able to increase how many securities are issued on a blockchain and create a really regulated space out of it. Despite how you can simply do these things with the blockchain technology, transfer agents will be still required by the law.
In a move to probably get more customers, the company will offer its record transfer services for free. Normally, these services can cost up to $150 USD, but they will not charge a fee, only for the management of the securities, which is a separate activity.
The SEC answered the company in only 10 days, which can be considered quite fast. However, the main reason for that might be because, according to the CEO, Securitize took six months to prepare the technology and create smart contracts that would be really efficient.
So far, Securitize is doing a good job of running its securities business. The company has already issued 11 of them and their value is already at the $200 million mark. At the moment, the company has 43 different customers and it has integrated its products with Ethereum and Tezos.
During its two funding rounds, Securitize was able to raise over $15 million USD to improve its business. Its code is also open-source since May, meaning that anyone can access it, following the classic crypto tradition.