Securitize, an industry leading issuance platform, has just announced the launch of their ‘pre-trade verification’ tool.
This launch represents another step forward in functionality within their platform, by offering investors the ability to ensure the successful trading of digital securities.
Due to the complex nature of digital securities, it is not as simple as sending tokens from one person to another. A series of checks must first be made to ensure that both wallets are compatible from both a functionality, and regulatory, standpoint. In addition, a user must determine an appropriate amount of gas to ensure the transaction is processed.
This new tool automates these steps, making the entire process much easier for users. Securitize had the following to say in their announcement of this new service.
“This tool utilizes one of the features of Securitize’s DS Protocol to pre-validate any proposed trade of a DS Protocol-powered digital security. Simply by entering the wallet addresses, you can verify if a transaction will be authorized according to the restrictions and regulations specific to the chosen token. By using the Pre-Trade Verification Tool, you can avoid spending any gas for a trade that’s not going to go through, and in many cases the tool will even provide a reason as to why a trade is not possible.”
Gas refers to what is essentially the ‘fuel’ needed to complete a transaction on the Ethereum blockchain. With the network still utilizing a proof-of-work protocol, successful transactions are contingent on a group of miners lending their computational power to the process. Miners are not in the business of processing transactions for free, however. Gas is, simply put, the amount of compensation, in the form of ETH, required by miners in order to complete a transaction on the network.
While there are varying minimums of Gas needed for a transaction to be successful, network users can opt to contribute greater levels of Gas, if they are looking for their transaction to be processed more quickly.
With regards to the DS-Protocol, Gas is still needed, as it is a specialized variant of the popular Ethereum based, ERC-20 standard. While the amount of Gas used per transaction is minimal, it still adds up with time. By gaining the ability to verify if a transaction will be successful through the use of Securitize’s Pre-trade verification tool, users can be more efficient in, both, their spending and time management.
Securitize has been one of the busiest issuance platform to date, with 10 tokens issues – and growing. The following are the crop of tokens supported in the pre-trade verification tool, at the time of writing.
- SPiCE VC
- Blockchain Capital
- Science Blockchain
- LDC Crypto Universal PLC Digital Securities
- Protos Token
- Cityblock Capital
In a recent positive move, Securitize was designated a transfer agent by the SEC. This now places them as direct competitors to companies such as VStock Transfer and Horizon Globex.
The SEC breaks down the role of a transfer agent into 3 main categories. They are as follows:
- Issue and cancel certificates to reflect changes in ownership
- Act as an intermediary for the company
- Handle lost, destroyed, or stolen certificates
While DS-Protocol is the in-house speciality of securitize, various other companies have decided to forge their own path and create their own variant. The following protocol standards are a few of the leading competitors.
- Regulated Token Standard ( R-Token)
Securitize is an issuance platform that was founded in 2017. Operating in the United States, they have managed to establish themselves as, arguably, the industry leader with regards to digital securities. While most issuance platforms are still working to get off the ground, Securitize has already successfully helped 10 outfits through the tokenization process.
CEO, Carlos Domingo, currently oversees company operations.
In Other News
The following articles delve a little bit deeper into the various designations doled out to participants within the digital securities sector – with Securitize holding multiple of these. Check them out to learn more about these, and the most recent tokens made available by Securitize!