One of the main promises of digital asset securities, or security tokens, is the ability to drive liquidity for private securities. Private capital markets are much larger and growing faster than public markets, but they are mostly illiquid. According to the World Federation of Exchanges, private capital markets raised $2.9T in 2019, more than double public capital markets at only $1.4T, and in 2020 that trend is continuing in spite of the burgeoning IPO market and the rise of SPACs. While public markets are extremely liquid, with $33T annualized volume trading, private markets are extremely illiquid with only $0.1T …


At Securitize, we have been tracking the growth of Decentralized Finance (DeFi) protocols and projects over the last few months with the intent of learning how we might improve upon these compelling innovations through the use of Digital Securities (security tokens).

The DeFi space presents an exciting opportunity to create dynamic new markets by utilizing different decentralized applications (DApps) running as financial smart contracts. These DApps run predominantly on the Ethereum blockchain today, where they can interact with each other and digital assets represented in tokenized form.

DeFi Pulse uses a great analogy that compares DeFi to Lego pieces where…


A lot has changed in the world since our last public update and over a year has passed so it is time for another company update.

The pandemic that hit us in early 2020 continues to this day and has challenged many facets of our society, including our social and economic realities. Everyone has been impacted by the events of 2020 and it’s impossible not to first recognize those who have suffered from illness, injury, and economic hardship during this time and to extend our thoughts to them.

After the initial shutdown in March, we closed all our offices and…


Securitize was founded in November 2017 after working on the concept of tokenization as part of SPiCE VC a few months prior. Since then, much has changed and we’ve seen exponential growth in the industry. As we approach our two-year anniversary, I’d like to take stock, share an update of where we are as a company, and explain where we think the market is heading.

When we started the project of tokenizing SPiCE VC and subsequently founded Securitize, the market for security tokens barely existed. Only one company, Blockchain Capital, had pioneered the technology and successfully issued a security token…


During the last months we have been hard at work with several liquidity partners to fulfill the promise of Security Tokens, or Digital Securities as we prefer to call them. Our team is working with these partners to integrate the mechanisms of Securitize’s Digital Securities Protocol (DS Protocol) within their platforms. Our protocol provides a guarantee to issuers that the required control mechanisms (due to regulatory and business reasons) are enforced during trades and it does so automatically and in a decentralized way using smart contracts on a public blockchain (Ethereum in this case).

Decentralized Compliance is the Key

Earlier this year, Templum announced that…


When I started SPiCE VC with my partners Ami and Tal, the main reference we had in the industry was the security token offering that Blockchain Capital had done for its fund. Not only did they issue a security token, which was what we believed we needed to do, but they also tokenized a fund. I wrote about how it became a source of inspiration for us and how we evolved their model. We decided to build our own platform to tokenize SPiCE VC, and that platform ended up becoming Securitize, which today is one of the leading primary issuance…


It is clear that security tokens or more adequately digital securities (not to be confused with the currently more popular utility tokens) are becoming the talk of the street these days as they have the potential to improve on a massive market. According to a recent article from the the Wall Street Journal, $1.6 trillion securities were sold privately in the US alone in 2017. Our research shows that the global market without China is closed to $2.6 trillion.

Digital securities address the fundraising, automation and liquidity needs of a very large pool of financial assets including companies (traditional and…


When I started working on SPiCE VC back in May 2017 and we decided to issue a security token, we had this slide in our VC fund presentation introducing the problem of lack of liquidity:

And the next slide was about how we though blockchain technologies will solve the problem and provide liquidity and we quote Stephen McKeon who had been very articulated about how liquidity was going to change the concept of ownership in ways we could not even imagine:


The crypto industry is in transition.

The relatively young space that is built on an exciting, new technology platform called blockchain, or decentralized ledger technology (DLT), has enjoyed the attention of invigorated developers and investors. These players are working to define the future of the industry, and one key underlying concept, the token, is a point of focus.

Until just recently the Utility Token and ICOs (Initial Coin Offerings) were the talk of the industry. Utility Tokens comprised the lion’s share of the nearly $7 billion raised in the last 15 months, but it is very likely the industry will see some changes as a direct…


In the world of finance the ICO might be the most polarizing three letters of 2018. In the past three years over US$5B has been raised via ICOs. Some investors got rich while many others did not. With the SEC recently stepping up its pressure on ICO issuers, companies are scrambling to find three new letters to distance themselves from what will probably go down in history as a black eye moment for crypto currencies.

Enter the STO — the Security Token Offering

The term ICO does not distinguish what class of token is being offered. Many ICO issuers decided…

Carlos Domingo

Co-founder and CEO Securitize and co-founder and managing partner of SPiCE VC.

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