Coinbase-backed, Securitize platform, a decentralized solution for issuing and managing trusted and compliant securities, raised over $14 million USD in a strategic fundraiser. The funding round included some of the largest financial institutions on the planet such as Banco Santander, MUFG Innovation Partners (subsidiary to Japan’s Mitsubishi UFJ Financial Group) and Nomura Holdings.
The company announced its SEC approval as a registered transfer agent in late August.
Securitize Raises $14 Million in Extended Financing Round
In a press release, Securitize confirmed an extension to its Series A funding on Sept 24 raising the total amount of funding during the round to about $29 million USD. The first round included a number of investors such as Coinbase Ventures, Ripple Venture, Blockchain Capital, SPiCE VC, and SeedRocket4Founders. The latter three participated in the recent round too.
The capital raise validates the technology development process of the digital asset security firm providing an efficient, cheaper way how
“securities move and function in capital markets”.
On the subject of the partnership with some of the largest companies, the Co-founder and CEO of Securitize, Carlos Domingo, said,
“Bringing on key strategic investors like Santander InnoVentures, MUFG, and Nomura, as well as leading blockchain investors, validates how transformative digital securities are for traditional financial markets.”
There has been an increased interest by big traditional companies as shown by Santander and MUFG’s investments in several blockchain companies despite the falling prices of cryptocurrencies since the peak in 2017. The partnership will help Securitize
“continue to drive adoption and innovation with our execution and industry-leading technology,”
Further Developments on Securitize
The series A (2) round further included industry players such as Tezos and Algorand, who join the team as strategic partners in the development sector. The three companies will build securitization solutions for digital assets on Tezos and Algorand blockchains. A spokesman from Tezos, Hubertus Thonhauser, looks forward to the partnership with Securitize. He said,
“Securitize is a pioneer in on-chain digital securities and has a strong founders team. The Tezos Foundation's mission is to fund strategically relevant projects and businesses building on Tezos, therefore we see a perfect match.”
The report also points out the achievement of the Securitize DS Protocol, a platform that manages secondary trading and corporate actions for cryptos, as the most adopted platform with a total 11 compliant digital securities listed and five trading on public marketplaces.