On January 7th, 2020, Securrency announced the successful closing of a Series A funding round which raised $17.65 million. The round was led by WisdomTree, the seventh largest ETF provider in the United States (U.S.). The firm said it has spent “years” reviewing the blockchain space and its applications — notably resulting with an investment in the security token space.
Securrency’s Series A Funding Round Explained
Based in the U.S. and founded in 2015, Securrency is developing tools to ensure the compliant use of digital assets. The company has now raised more than $17.6 million in a Series A funding round led by WisdomTree, the exchange-traded fund (ETF) and exchange-traded product (ETP) giant which manages $44.5 billion in assets.
A number of additional strategic investors and venture capital firms were involved in the funding round. Participants include the Abu Dhabi Investment Office (ADIO), Monex Group, RRE Ventures, Panthera Capital Investments, and Strawberry Creek Ventures.
Securrency is developing the Compliance Aware Token (CAT) protocol to ensure the regulatory compliance of security tokens across different jurisdictions. As a blockchain agnostic technology, CAT represents the world’s first multi-ledger security token protocol, the company has said.
According to Dan Doney, Securrency’s CEO,
“Securrency recognized early on that global liquidity for digital securities will result from validated identity and multi-jurisdictional compliance…We have been building over the past several years a unique framework that is not restricted to one blockchain or platform in order to allow for the remarkable innovations across this space to come together in a way that encourages the major institutions, market makers, and other market players to swiftly and confidently transition into this new technological paradigm.”
Jonathan Steinberg, CEO and founder of WisdomTree spoke very highly of both the team behind Securrency as well as the use-case that Securrency seeks in its application of blockchain technology. Steinberg said,
“Our investment in Securrency is the result of a multi-year review of blockchain technology and the associated landscape. In our review, we found instances of unnecessary applications of the technology and poor compliance with existing regulations; however, there are numerous elements of blockchain technology that, when correctly applied, will bring benefits to investors…Securrency’s leadership team has a unique combination of U.S. national security experience, technical expertise and financial services knowledge. We are confident that these attributes, together with its focus on compliance, will empower Securrency to be the leading technology firm in the disruption of financial services infrastructure through the industry’s adoption of blockchain technology.”
WisdomTree’s Involvement in the Blockchain Space Explained
While WisdomTree is a traditional asset management firm, the company entered the blockchain space in December of 2019. During that time, a spike in trading volume for digital asset ETPs was noted on Switzerland’s principal stock exchange, SIX.
WisdomTree wasted no time in getting involved, by launching a Bitcoin ETF in December. At the time, Alexis Marinof, head of Europe at WisdomTree remarked,
“We have seen enough to believe that digital assets, like Bitcoin, are not a passing trend and can play a role in portfolios.”
Rafi Aviav, head of WisdomTree’s product development, capital markets, and technology added,
“We have developed a solution which addresses the difficulties investors face in accessing digital assets and are bridging the gap between the underlying decentralized online blockchain technology and traditional investment structures.”
A Bitcoin ETF was clearly a natural first step into the blockchain space for WisdomTree, as it remains the seventh largest ETF provider in the United States. Yet the ETF giant’s “multi-year review of blockchain technology” and its associated applications resulted in an investment in a security token startup, suggesting notable potential for the security token industry.
Swiss stock exchange SIX has also seen the potential. They’ve announced plans to tokenize existing securities by 2021 and launch a Digital Offering Service (DSO). The DSO is said to “fulfill similar standards to an IPO”, yet incorporate the benefits of blockchain technology.
What do you think of Securrency raising nearly $18 million in a Series A funding round led by WisdomTree? We want to know what you think in the comments section below.
Image courtesy of Securrency.