Securitize, Coinstreet, and STO Global-X announced a strategic partnership in a joint press release on January 29th. The move helps San Francisco-based Securitize move towards its goal of providing a one-stop STO solution for Asian companies looking to convert their assets into tokenized securities.
Securitize CEO Carlos Domingo said, “Strategically, we look to work with companies that not only have the right financial infrastructure to deploy Securitize’s DS Protocol and platform, but also have an in-depth understanding of institutional clients. Our partnership with Coinstreet Partners and STO Global-X fits this bill and will help to bring a comprehensive security token solution to Asia.”
Coinstreet Partners Limited is a Hong Kong-based security token consultancy and crypto investment firm that claims it is building a “decentralized and fully integrated investment bank.” Coinstreet operates a number of digital token business segments individually focused on investor relations, PR & media, wealth management, marketing and events, token trading, and DLT programming.
Sam Lee, Coinstreet founder & CEO, said, “This (strategic partnership with Securitize) will enable us to offer a one-stop security token offering solution to enterprises, allowing them to leverage a new alternate path in the capital market.”
About STO Global-X
STO Global-X (“STGX”) is a Singapore-based security token exchange that claims to be an “institutional-grade global platform for issuing and trading tokenized assets 24/7.” STGX features KYC approval and custodial services. Its open-access platform is designed to integrate with external digital asset custody networks, high-frequency trading platforms, market-making order books, payment processing, and international settlements.
Floyd DCosta, STO Global-X CEO, said, “Securitize enables institutions to tokenize securities while STO Global-X facilitates the virtual ownership and trading of conventional assets using digital tokens. Together we are able to bring digital securities to the forefront and drive the mainstream adoption of this financial innovation.”
In December, before the deal with Securitize was inked, STO Global-X announced a partnership with BMI Capital Partners International and Coinstreet. At that time, STO Global-X said that it was “exploring partnerships with licensed institutions across multiple jurisdictions to host and operate regulated STO platforms and security token exchanges.”
Chairman of BMI Capital, Chan Heng Fai, said in STO Global-X’s press release about the partnership, “Present capital market conditions do not efficiently support IPO's of small and medium size companies. STOs can provide an alternate cost-efficient way to fund the growth of SMEs. We are very pleased to collaborate with STO Global-X to capture opportunities in the new era.”
More about Securitize
Securitize describes itself as a “Compliance platform and protocol for issuing and managing digital securities on the blockchain.” Securitize's platform enables companies to manage pre- and post-STO regulatory compliance and post-STO dividend distributions and share buy-backs.
In November, Securitize raised $12.75 million in Series A funding led by Blockchain Capital. Other participants included Coinbase Ventures, Global Brain, NXTP, OK Blockchain Capital, and Ripple’s Xpring. Blockchain Capital’s co-founder and Managing Partner, Brad Stephens, noted at the time that Securitize plans to launch a Digital Security Offering (DSO) in 2019.
Securitize’s other major milestones include:
- Token issuances for blockchain VC firms 22x, SPiCE VC, and Augmate
- An upgrade to Blockchain Capital’s security token network
- Announcements of intention to support Securitize’s DS Protocol by digital securities marketplaces Blocktrade, Hyperion, SharesPost, and tZERO
- Acceptance into the IBM/Columbia University Blockchain Accelerator