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On February 3rd, 2020, digital securities platform Securitize announced an investment from Sony Financial Ventures. Sony has now joined a notable list of firms backing Securitize, including Coinbase, Ripple, Blockchain Capital, Santandar Bank, MUFG, and SBI Holdings.
Sony’s Entrance in the Security Token Space Explained
Securitize is a technology provider for the issuance and management of digital securities. As an extension of its latest funding round, Securitize has now raised funds from a joint investment partnership involving Sony Financial Ventures and Global Brain.
Sony Financial Ventures was founded in 2018. It is a wholly owned subsidiary of Sony Financial Holdings, the financial services arm of Sony Group.
A translation of comments from Securitize co-founder and CEO Carlos Domingo reads,
“We are pleased to welcome Sony Financial Ventures as a strategic investor at Securitize. This strategic investment will demonstrate Securitize as one of the most important designers of the digital capital markets, while at the same time ensuring the future of the global capital markets. [Sony Financial Ventures] has added a new name to the list of companies investing in digital securities.”
Securitize’s most recent funding round includes a Series A extension, which raised $14 million. The extension featured participants including Santander InnoVentures, MUFG Innovation Partners, and Nomura Holdings.
A translated note from Sony Financial Ventures Director Junji Nakamura reads,
“Securitize is expertly leveraging blockchain technology to create a new asset class with astonishing abilities. We at Sony Financial Group are excited to take on this challenge with Securitize and create new value together.”
The Funding Behind Securitize Explained
Securitize has quickly emerged as a leader in the digital securities space. The San Francisco-based firm has provided the technology for the tokenization of more than 10 assets which collectively raised over $300 million.
Digital securities, which are also referred to as security tokens, can be utilized in a number of different asset classes. Equity, investment funds, bonds, real estate, and even illiquid assets such as fine art and collectible cars have undergone tokenization.
To help with the process, Securitize has developed its Digital Securities (DS) Protocol. It not only assists with the issuance of security tokens, but also with management through secondary market trading including corporate actions. According to Securitize, the DS Protocol is the most adopted technology across the global financial industry.
Securitize has now raised more than $30 million in funding. In November of 2018, the firm closed its Series A round. A total of $12.75 million was raised, with participants including Blockchain Capital, Coinbase Ventures, and Ripple’s Xpring fund.
In recent months, Securitize has established a notable presence in the Asian securities market, recently announcing a seven figure investment from Japan-based SBI Holdings. With the investment from Sony Financial Ventures, Securitize has arguably received its most high-profile backing to date.
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Image courtesy of The Times of Israel.