Securitize, a San Francisco-based security token startup, has secured $12.7 million in Series A funding. The round was led by Blockchain Capital, with participation from Coinbase Ventures, Xpring (Ripple's investment arm), OK Blockchain Capital, Global Brain, and NXTP.
Accelerating Blockchain-Based Securities Digitization
Carlos Domingo, Co-Founder and CEO of Securitize, stated that the funding will accelerate the digitization of traditional securities on blockchain networks. As part of the investment, Blockchain Capital's Brad Stephens will join Securitize's board of directors.
The global securities industry handles enormous daily transaction volumes, peaking at over $7 trillion. Securitize aims to migrate these assets onto decentralized ledgers to enhance:
- Transparency
- Auditability
- Real-time settlement efficiency
👉 Discover how blockchain transforms capital markets
Global Expansion Plans
Domingo emphasizes the growing tokenization trend across traditional securities markets. With this funding, Securitize will:
- Expand operations from Latin America to Asia-Pacific regions
- Scale blockchain-based securities digitization globally
- Capture emerging market opportunities in compliant tokenized assets
Current Client Portfolio
Securitize serves notable clients including:
- 22x
- SPiCE VC
- Augmate
- Blockchain Capital's BCAP security token
The company also revealed that Securitize-protocol digital securities are now tradable on regulated platforms:
- AirSwap
- OpenFinance Network
Investor Perspectives
Ethan Beard, SVP of Xpring, commented:
"Securitize has assembled an exceptional team focused on expanding private securities markets through compliant, liquid, and easily tradable digital assets."
Key Advantages of Tokenized Securities
| Feature | Traditional Securities | Tokenized Securities |
|---|---|---|
| Settlement Time | 2-3 days | Near-instant |
| Auditability | Limited | Full blockchain traceability |
| Market Access | Restricted hours | 24/7/365 availability |
FAQs
Q: What makes security tokens different from utility tokens?
A: Security tokens represent actual financial assets with ownership rights, while utility tokens provide access to products/services.
Q: How does Securitize ensure regulatory compliance?
A: The platform implements KYC/AML protocols and works within existing securities frameworks across jurisdictions.
Q: Which industries benefit most from tokenization?
A: Private equity, real estate, and venture capital see significant efficiency gains through fractional ownership and liquidity.
👉 Explore security token investment opportunities
Q: What's the typical ROI timeline for tokenized assets?
A: While variable, blockchain automation can reduce administrative costs by 30-50%, potentially improving investor returns.
Q: How does tokenization impact market liquidity?
A: By enabling fractional ownership and secondary trading of traditionally illiquid assets like real estate or private equity.
Q: What's next for Securitize?
A: The company plans to onboard more institutional clients while expanding its regulatory tech (RegTech) solutions for issuers.