Coinbase Supports Securitize’s $12.7M Funding Round

Digitized securities startup Securitize reveals that it has successfully raised close to $13 million in a Series A funding round on Monday in an attempt to digitize traditional securities products on a Blockchain.

Securitize co-founder and CEO Carlos Domingo states that Blockchain Capital leads the equity investment which aims to provide the company with “knowledgeable investors” in preparation for a security token offering. The security token startup also plans to “streamline its investor relations,” increase liquidity and compliance efforts and maintain capital formation.

The company states that through the deal, Brad Stephens, the co-founder and managing partner of Blockchain Capital will now be joining the Securitize board of directors. Participants in the Series A funding include Coinbase Ventures, Xpring of Ripple, OK Blockchain Capital of OKEx, Global Brain, and NXTP.

Domingo clarifies that Securitize aims to transition the approximately $7 trillion securities industry to decentralized ledgers because they are more transparent, auditable, and have the capacity to facilitate immediate transactions.

He further states that his company believes that the “tokenization” of the traditional securities sector is currently happening on a global scale. He adds by saying that to leverage on this burgeoning market opportunity they plan on increasing their engineering team, as well as their geographic scope from Latin America to the Asia Pacific Region and across the world.

Securitize has already started releasing digital securities for companies like 22x, SPiCE VC, Augmate, and Blockchain Capital’s very own BCAP security token.

The company underscores that digital securities based on the company’s protocol have also been traded on AirSwap and the OpenFinance Network in a regulatory-compliant fashion.

Ethan Beard, the senior vice president of Xpring, elaborates that the Ripple initiative is focused on tokenized securities, among other areas. He continues, saying that Securitize is a “great team” which is focused on unlocking the private securities market.