Digital Securities Platform Securitize Raises $14 Million in Series A Extension
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Digital Securities Platform Securitize Raises $14 Million in Series A Extension

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As of September 24th 2019, Securitize has announced a Series A extension which raised $14 million, bringing their total financing to more than $30 million. The latest round echoes the firm’s effort in breaking into the ‘untapped’ Asian securities market.


Securitize’s Fundraising Explained

Securitize provides technology for the issuance and management of digital securities, also referred to as security tokens. They do this through their open source Digital Securities (DS) Protocol.

Previously, the firm raised over $12 million in a Series A round, with participants including Coinbase Ventures, Ripple Ventures, Blockchain Capital, and others.

Now, Securitize has raised another $14 million in a Series A extension. Backers include three of the world’s largest banks— Banco Santander through its VC arm Santander InnoVentures, MUFG through its VC subsidiary MUFG Innovation Partners, and Nomura Holdings.

Securitize CEO Carlos Domingo says the big names say a lot about the potential in digital securities. According to Domingo,

“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. Their investment in Securitize ensures that we can continue to drive adoption and innovation with our execution and industry-leading technology.”

Securitize’s DS Protocol currently has the highest adoption rate in the developing industry, with 11 on-chain assets issued, five trading on public marketplaces, and partnerships with SEC-registered Alternative Trading Systems (ATSs) such as tZERO and OpenFinance.

Securitize has been making an effort to break into the Asian securities market. The firm has made partnerships to transform the securities market in Asia and has also joined the Japan Security Token Association.

Members of the latest funding round demonstrate the firm’s effort in the Asian market. Participants include KDDI Open Innovation Fund— one of the largest telecom companies in Japan, the innovation arm of Mitsui Fudosan— a massive real estate developer in Japan, Hong Kong blockchain VC firm Kenetic Capital and China’s first VC firm dedicated solely to blockchain, Fenbushi Capital.

Both the Tezos Foundation and Algo VC also participated to strategically collaborate with Securitize to tokenize securities on the Tezos and Algorand blockchains.

Both blockchains are already involved with digital securities: Securitize previously signed a partnership with Elevated Returns to tokenize $100 million worth of real estate on Tezos, while Algorand was recently selected by AssetBlock to tokenize $60 million worth of securities.

What do you think about Securitize raising $14 million in a Series A extension? Let us know what you think in the comments section below.


Image courtesy of Securitize.

September 25, 2019

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Tim Fries Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firms specializing in sensing, protection and control solutions (IoT).