Investing in Securitize
The Compliance Platform for Digitizing Securities on Blockchain
At Xpring, decentralized finance continues to be an active area of interest. Decentralization enables permissionless behavior and the freedom to exchange and program value. However, finance is a regulated industry and the movement of assets must comply with regulatory requirements. We believe the tokenization of assets and unlocking liquidity in private markets, such as real estate and company ownership, is a massive opportunity.
This value will only be realized if the assets can be traded and programmed seamlessly to increase volume and liquidity. However, issuing assets permissionlessly without meeting regulatory requirements will put the asset at risk, thereby limiting adoption and inhibiting the true potential of free market flows.
Today, transferring ownership of a private security is costly, slow and has potential for errors. Securitize is unlocking liquidity in the trillion dollar private securities market with compliant and easily tradable assets. We believe the ability to trade tokenized securities and assets is in demand and removing the friction from the existing process will enable greater liquidity and innovative financial products and services. Carlos Domingo, CEO of Securitize, is an experienced corporate innovator and has brought products to market at the pinnacle of the last two internet cycles: dot com and rise of mobile. His experience in productizing technology to meet the market demand has been well honed as head of R&D at Telefonica and as a Managing Partner at Spice VC.
Securitize is able to issue security tokens on public blockchains such as XRP Ledger and Ethereum and the logic of their Digital Securities (DS) protocol ensures compliance is met at the token level. Token issuers and buyers are put at ease as the digital assets they are holding and/or trading are meeting regulatory requirements.
Issued tokens can upgrade and new issuers can tokenize securities on the Securitize platform. Customers include Blockchain Capital, Spice VC, Augmate and 22x. We are excited to be investing alongside Blockchain Capital, OK Coin, Coinbase Ventures, Global Brains, NXTP and others.
Securitize is well positioned to shepherd the tokenized security market to the next phase of mass adoption. They will further enable other projects to interact and compose new solutions on top of security tokens. We are thrilled to be working with them.
Thanks to Evan Schwartz.