Boosted by an impressive range of investors in just three years since its founding, Securitize has managed to become a trusted platform for the process of securities tokenization – turning illiquid assets into fungible securities. On June 5, 2020, Securitize broke another psychological wall for the sector – paying out the first security token royalty payment for Lottery.com.
The First Royalty Payment for Security Tokens
It is easy to forget that FinTech is not just about the efficiency and the convenience of digital technology implemented in the traditional financial sector. It is also about opening up new opportunities thanks to digital technology.
Case in point, if you happen to hold an illiquid asset such as a stock or a bond, you could face difficulty when it comes to transferring that asset without losing major value. This is where tokenization comes into play, a process which is anticipated to bring significant benefits to financial securities.
Through this method, a whole new set of options becomes available. Accordingly, Securitize, founded in 2017 by Carlos Domingo, makes it possible to tokenize traditional financial securities by way of distributed ledger technology (DLT).
Securitize and Lottery.com’s Royalty Payment
Lottery.com is the leading Austin-based platform providing digital media publishers with data feeds for all kinds of luck-based games across 35 countries. With just under 50 employees and a $9 million revenue, Lottery.com has chosen Securitize to handle their royalty payment.
Accordingly, Securitize is the first SEC-registered facilitator of royalty payments for Lottery.com’s security tokens. Via LDCC Universal PLC, Lottery.com first registered its LDCC security in 2019, thus becoming the first digital security issuer to provide its investors with royalty payments.
For the purpose of distributing these royalty payment, Securitize deployed its latest DS protocol, enabling them to provide investors and stockholders a web link with which they can choose their form of payment, ranging from 120 fiat currencies to cryptocurrencies like a USD stablecoin, Ether, and many others. In short, the entire process is digital without any hard copies.
The CEO and Founder of Securitize, Carlos Domingo, issued the following statement on this milestone for the security token sector:
“This first payment is significant for all of us in the industry. It’s another great step in modernizing capital markets by enabling digital securities. We firmly believe the future of all assets is digital.”
On the other side of the business deal, Matt Clemenson, CEO and Co-Founder of Lottery.com had this to say:
“Leveraging Securitize’s infrastructure for distribution of the dividend was a no brainer for us. They make it so easy to pay all of our token holders in the way that they want to be paid.”
Meanwhile, Securitize will likely continue to build upon its inertia of expanding into the world’s markets and secure its reputation for dependable securities digitization. The firm recently acquired Japan-based BUIDL and also partnered with the Japan Security Token Association (JSTA).
As the digitization of finances proceeds with full steam, do you worry about the removal of paper trails along with diminished autonomy and anonymity that only physical cash can provide? We want to know what you think in the comments section below.