Securitize is a blockchain-enabled company that facilitates the capital markets by allowing traders to trade in private companies using trusted global solutions. The platform is secure and offers high-quality experience for investors. It is integrated with multiple US-based marketplaces, so traders can trade without any fear of losing their earnings. The company has received over $26 million in funding and aims to become one of the biggest US marketplaces.
Securitize was born out of a mission to decrease friction and create liquidity in the private sector. After launching SPiCE Venture Capital (SPiCE VC), Carlos Domingo and his co-founders envisioned using blockchain technology as a way to provide automation and liquidity for limited partners, an asset class that had always been considered illiquid.
Once it was determined that no compliant technology existed for issuing and managing digital asset securities, Carlos and co-founder Jamie Finn decided to build the technology, and soon after, used it to successfully issue one of the world’s first tokenized venture capital funds, SPiCE VC. In late 2017, Carlos and Jamie, spun off the SPiCE VC technology as a new company, launching Securitize, Inc. with the goal of making all of the world’s assets digital.
By 2019, Securitize, LLC made headlines by becoming the only SEC Registered Transfer Agent operating on the blockchain.
In 2020, with its industry-leading primary issuance and compliance platform, Securitize was recognized by CB Insights as a top 50 global innovator leveraging the blockchain, their first-ever ranking of the most promising companies within the blockchain ecosystem.
2021 was the year Securitize really started to take off: issuing the first credit-rated security token in Japan, completing a $48 million Series B round co-led by Morgan Stanley and Blockchain Capital, launching Securitize Capital and four tokenized funds (including the first two funds to track S&P indices), and we premiering Securitize Markets to enable trading of digital asset securities.
The pace of major milestones has continued into 2022, with the launch in January of the ETH yield fund and in February with the news that Securitize is now among the top 10 U.S. stock transfer agents (and the leading digital transfer agent), with the acquisition of Pacific Stock Transfer. As a result of that acquisition, Securitize now has over 1.2 million investor accounts and 3,000 clients.
Securitize Markets, LLC (Securitize Markets), a subsidiary of Securitize, Inc. brings the issuer and the investor together, where the issuer raises capital and investors can access alternative investment opportunities in a fast and transparent way.
Having worked with 200+ issuers, Securitize is a pioneer in the digitization of private market securities on the blockchain, for example:
Launched first dedicated fully-digital securities issuance platform, Securitize, Inc.
First and only platform to fully integrate compliance protocol with regulated marketplace ATS and to enable live trading security tokens with Securitize Markets.
First digital asset securities firm to vertically integrate transfer agent and broker-dealer ATS (Alternative Trading System) registered services.
Securitize, LLC has also been the chosen partner to power many of the firsts in Digital Asset Securities, including:
First Reg. A+ security token issued representing class A common stock in Exodus.
First credit rated tokenized fund in Japan, with Sumitomo Mitsui Trust Bank.
First fully-tokenized venture capital funds, with SPiCE VC and Blockchain Capital.
First security token offering in Japan, with Lead Real Estate.
First security token issued as debt by an NBA player, Spencer Dinwiddle of the Brooklyn Nets.
Securitize has raised approximately $100 million in funding. Its most recent funding round was a $48 million Series B in June 2021, led by Morgan Stanley and Blockchain Capital, in what Forbes described as “Morgan Stanley’s first dedicated investment in the crypto space.” Morgan Stanley’s involvement was a result of Securitize CEO Carlos Domingo being introduced to Morgan Stanley Managing Director Pedro Texeira by a mutual friend in Miami.
May reduce portfolio quality: If the AAA risks, for example, are being securitized out, this would leave a materially worse quality of residual risk.
Costs: Securitizations are expensive due to management and system costs, legal fees, underwriting fees, rating fees and ongoing administration. An allowance for unforeseen costs is usually essential in securitizations, especially if it is an atypical securitization.
Size limitations: Securitizations often require large scale structuring, and thus may not be cost-efficient for small and medium transactions.
Risks: Since securitization is a structured transaction, it may include par structures as well as credit enhancements that are subject to risks of impairment, such as prepayment, as well as credit loss, especially for structures where there are some retained strips.
Securitize Markets’ digital end-to-end marketplace brings issuers and investors together in one platform, allowing our investors a simpler experience building and managing their alts portfolio.
Diversify across asset classes and cut down on research time by accessing unique investment offerings on one platform4.
Your hard-earned money shouldn’t be spent on fees. Invest with $0 commissions on primary market investments and approachable secondary market trading fees. On top of that, issuers can set minimums as low as a fraction of a token*.
Unlock your net worth with the ability to trade select holdings through our efficient and secure peer-to-peer trading platform.
Digital Asset Securities are digital representations of traditional financial products such as equity and debt, of which the ownership rights are registered on a blockchain.
Opportunity to potentially earn a higher rate of return (on a risk-adjusted basis)
Opportunity to invest in a specific pool of high quality assets: Due to the stringent requirements for corporations (for example) to attain high ratings, there is a dearth of highly rated entities that exist. Securitizations, however, allow for the creation of large quantities of AAA, AA or A rated bonds, and risk averse institutional investors, or investors that are required to invest in only highly rated assets, have access to a larger pool of investment options.
Portfolio diversification: Depending on the securitization, hedge funds as well as other institutional investors tend to like investing in bonds created through securitizations because they may be uncorrelated to their other bonds and securities.
Isolation of credit risk from the parent entity: Since the assets that are securitized are isolated (at least in theory) from the assets of the originating entity, under securitization it may be possible for the securitization to receive a higher credit rating than the “parent”, because the underlying risks are different. For example, a small bank may be considered more risky than the mortgage loans it makes to its customers; were the mortgage loans to remain with the bank, the borrowers may effectively be paying higher interest (or, just as likely, the bank would be paying higher interest to its creditors, and hence less profitable).
Blockchain Capital (formerly Crypto Currency Partners) is a venture capital company leading venture firm in the blockchai.The company was founded in October 2013 by Bart Stephens, Bradford Stephens and Brock Pierce, chairman of the Bitcoin Foundation.Blockchain Capital is one of the most active and oldest venture investors in blockchain technology with a portfolio of more than 70 projects financed and $275M assets under management.
Morgan Stanley is an American multinational investment management and financial services company headquartered at 1585 Broadway in Midtown Manhattan, New York City. With offices in more than 41 countries and more than 75,000 employees, the firm’s clients include corporations, governments, institutions, and individuals.Morgan Stanley ranked No. 61 in the 2021 Fortune 500 list of the largest United States corporations by total revenue.
The original Morgan Stanley, formed by J.P. Morgan & Co. partners Henry Sturgis Morgan (grandson of J.P. Morgan), Harold Stanley, and others, came into existence on September 16, 1935, in response to the Glass–Steagall Act that required the splitting of commercial and investment banking businesses. In its first year, the company operated with a 24% market share (US$1.1 billion) in public offerings and private placements.
The current Morgan Stanley is the result of merger of the original Morgan Stanley with Dean Witter Discover & Co. in 1997. Dean Witter’s Chairman and CEO, Philip J. Purcell, became the Chairman and CEO of the newly merged “Morgan Stanley Dean Witter Discover & Co.”The new firm changed its name back to “Morgan Stanley” in 2001. The main areas of business for the firm today are institutional securities, wealth management and investment management. The bank is considered systemically important by the Financial Stability Board.
Sumitomo Mitsui Trust Holdings, Inc., formerly Chuo Mitsui Trust Holdings, Inc., is a Japanese financial holding company headquartered in Chiyoda, Tokyo. It provides an assortment of financial products to retail and wholesale customers, with a focus on asset management, financial brokerage and real estate services.
Avalanche is the fastest smart contracts platform in the blockchain industry, as measured by time-to-finality, and has the most validators securing its activity of any proof-of-stake protocol.
Blockchain.com got its start as an early pioneer of key infrastructure for the bitcoin community. First, with a Blockchain Explorer that enabled anyone to not only examine transactions and study the blockchain, but an API that enabled companies to build on Bitcoin. We also have provided the most popular and widely used crypto wallet that enables anyone anywhere to control their own money.
Borderless Capital is a Blockchain VC firm and a modern financial institution investing capital and co-building financial products with our portfolio companies that accelerates access, bootstraps adoption, and creates value globally through the Algorand Borderless Economy.
Coinbase Ventures is an investment arm of Coinbase that aims to invest in early-stage cryptocurrency and blockchain startups. The company was founded in 2018 and is based in San Francisco, California, United States.
Fenbushi Capital is the first and most active blockchain-focused venture capital firm in Asia. Founded in Shanghai in 2015 by veterans across both blockchain and traditional financial industries, it has to date supported over 60 leading projects across 4 continents leveraging blockchain technology to reshape myriad industries such as finance, healthcare, supply chain, and consumer goods. Fenbushi’s mission is to drive healthy and sustainable growth in the global blockchain ecosystem, and actively works as a long-term strategic partner to its portfolio projects.
Migration Capital is a private investment company based in the Greater Boston Area. We invest across all asset classes, with emphasis on private markets and alternatives investments.
The Mitsui Fudosan Co., Ltd is a major real estate developer in Japan. Mitsui Fudosan is one of the core companies of Mitsui Group. Mitsui Fudosan Co. Ltd.
Mouro Capital is a venture capital firm investing in the future of financial services. With $400m in assets under management, we back ambitious entrepreneurs leading early to growth stage businesses across Europe, North America, and Latin America. Like our namesake Mouro Island, whose lighthouse acts as a beacon for travelers to the Bay of Santander in Northern Spain, we help guide teams as they build the businesses that transform the financial sector.
MUFG Bank, Ltd. is the largest bank in Japan. It was established on January 1, 2006, following the merger of the Bank of Tokyo-Mitsubishi, Ltd. and UFJ Bank Ltd. MUFG is one of the three so-called Japanese “megabanks”. As such, it is considered a systemically important bank by the Financial Stability Board.
Nomura Securities Co., Ltd. (野村證券株式会社, Nomura Shōken Kabushiki-gaisha, NSC) is a wholly owned subsidiary of Nomura Holdings, Inc. (NHI), which forms part of the Nomura Group. It plays a central role in the securities business, the Group’s core business. Nomura is a financial services group and global investment bank. Based in Tokyo and with regional headquarters in Hong Kong, London, and New York, Nomura employs about 26,000 staff worldwide. It operates through five business divisions: retail (in Japan), global markets, investment banking, merchant banking, and asset management.
Established December 25, 1925 in Osaka, it is the oldest brokerage firm in Japan. It is named after its founder Tokushichi Nomura II, a wealthy Japanese businessman and investor. Nomura Securities operates in Asia. In the US it is known as Nomura Securities International, and in EMEA it is Nomura International plc.
NTT DATA Corporation is a Japanese multinational information technology service and consulting company headquartered in Tokyo, Japan. It is partially-owned subsidiary of Nippon Telegraph and Telephone. Japan Telegraph and Telephone Public Corporation, a predecessor of NTT, started Data Communications business in 1967.
Nuvemshop is Latin America’s leading e-commerce platform. It currently empowers 85,000+ merchants to launch, develop and promote their own online businesses.
OK Blockchain Capital is the investment arm of OK Group, focusing on blockchain industry investments. OK Blockchain Capital is devoted to assist promising entrepreneurs and teams to grow and succeed in blockchain industry by offering exclusive consulting services, technological support and funding.
Ripio is a financial payments company that provides electronic payment solutions for businesses in Latin America. Ripio uses blockchain technology to build infrastructure for the local crypto ecosystem with the objective of extending access to the digital economy in emerging markets.
Ripple is a real-time gross settlement system, currency exchange and remittance network created by Ripple Labs Inc., a US-based technology company.
SBI Holdings, sometimes referred to as Strategic Business Innovator Group, is a financial services company group based in Tokyo, Japan. The group’s businesses and companies are held primarily at SBI Holdings.The SBI Group has three core businesses: Financial Services, Asset Management, and Biotechnology, Healthcare & Medical Informatics Business.
Sony Financial Ventures is the wholly owned investment subsidiary of Sony Financial Holdings Inc. Tokyo, Tokyo, Japan. Venture Capital. Early Stage Venture, Late Stage Venture.
Tezos is a decentralized open-source blockchain that can execute peer-to-peer transactions and serve as a platform for deploying smart contracts. The native cryptocurrency for the Tezos blockchain is the tez which has the symbol XTZ. The Tezos network achieves consensus using proof-of-stake.
Securitize is a Digital Asset Securities firm. Our goal is to provide access for investors to invest in private market digital asset securities (security tokens), and provide companies with a fully-digital end-to-end suite of compliant solutions leveraging the advantage of next generation blockchain technology.
This team believes in an accessible and frictionless future for both issuers and investors, where all investors can trade and private companies can fundraise using digital asset securities. As an industry-leader, we’re paving the path for the compliant digitization of financial assets.
Source : securitize.io _ smtb _ morganstanley _ blockchain _ avalabs.org _ blockchain _ borderlesscapital _ fenbushicapital _ crunchbase _ mitsuifudosan.co _ mourocapital _ nomura _ ripple _ sbigroup.co.jp _
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