Security Token Startup Securitize Introduces One-Stop Shop for Token Services

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Securitize, a security token startup backed by Coinbase, has introduced a referral network of sorts to assist companies in managing and issuing digital securities.

Revealed on April 9, the “Securitize Ready Program” integrates services from several partners, including Coinbase Custody, trading platforms Rialto Trading and OpenFinance, along with CBlock Capital, a private investment group. More partners are anticipated to join the program in the future, Securitize stated.

According to the startup, the Securitize Ready program intends to assist the clients of these partners—which also include lawyers, broker-dealers, and advisory firms—manage and issue security tokens utilizing Securitize platform in compliance with existing regulations.

Head of the program Steven Lucido stated in a press release: 

“Securitize Ready frees partners to focus on their core business while providing their clients access to the industry’s most widely adopted issuance and lifecycle management technology. It represents a win-win for both partners and the issuers they work with.”

The company said that the Securitize platform and its digital securities protocol upholds compliance on secondary trading and allows “automated” features like dividends, buy-backs, and voting.

Securitize further stated that it has already enabled digital securities sales for firms like SPiCE VC, 22x, Augmate, along with Blockchain Capital’s BCAP security token.

The startup secured roughly $13 million in a Series A round in November 2018, with participation from Coinbase Ventures, OKEx’s OK Blockchain Capital, and Ripple’s Xpring, among others.

Securitize also collaborated with OTCXN, a blockchain infrastructure company, earlier this year. The partnership intends to tokenize and sell securities by merging Securitize’s securities compliance platform with OTCXN’s custodial ledger system.