Institutional investors are flocking to blockchain endeavours – including digital securities. As a result, 2020 has seen a flurry of activity, with companies serving the sector developing additional offerings. Securitize continues to innovate and lead the path for digital security services. Today, Securitize has announced the aquistion (pending regulatory approval) of DTM, an American broker/dealer and alternative trading system.
Securitize Gains New Capabilities
Acquisitions are undertaken for a variety of reasons. Earlier this year we saw Securitize acquire BUIDL, as it attempted to make inroads into Japanese markets. In today's example, involving DTM and Velocity Platform, the move was undertaken due to each company’s existing status as a registered broker-dealer, alternative trading system (ATS), and money-transmitters. By acquiring these companies, Securitize now inherits these designations, as well – a process much quicker than applying themselves and waiting for approval.
“For Securitize to start from scratch and go through the broker-dealer and ATS registration process would have been an expensive, long and uncertain process.” – Carlos Domingo, CEO of Securitize
By becoming a broker-dealer and ATS through the acquisition, Securitize now gains the ability to develop its own secondary marketplace – something the digital securities sector is in dire need of. If digital securities are to deliver on their promise of liquidity for investors, they need a place to call home – a trusted platform where they can be traded seamlessly.
The capabilities afforded through these acquisitions are not the first expansion in skillset seen by Securitize this year. In late 2019 the company successfully applied for and was awarded by the SEC, designation as a licensed transfer-agent. No doubt, this process gave the company first hand insight into such processes, swaying its decision towards acquisition for future moves.
Interestingly, Carlos Domingo, CEO of Securitize, notes that this move was one made out of necessity. Originally, Securitize was content to utilize marketplaces developed by others, however, multiple years since its launch, this has not come to fruition.
He states, “We at Securitize signed MOUs or had discussions with over 40 different companies that were working on launching a regulated marketplace for security tokens and hoped to list the securities of our customers…Unfortunately, very few of these projects have launched, and those that have, haven’t been particularly successful in driving liquidity.”
“We faced a conundrum in early 2020. Should we partner with others attempting to solve the liquidity problem or proactively go and try to fix the problem ourselves? After extensive internal discussions with our team and board, we decided to pursue the second option.”
Securitize is a market leading company, that offers a variety of solutions geared towards the digital securities sector.
Solutions offered through Securitize allow for the creation, sale, issuance, distribution, and management of digital securities. This is made possible through the use of their own protocols, built on blockchain technology. Known as the DS-Protocol, this allows for issued digital securities to remain compliant with global regulations.
Securitize maintains its base of operations in San Francisco, where operations are overseen by CEO, Carlos Domingo.
In Other News
Securitize is not the only company working hard to develop a secondary marketplace for the digital securities sector. We have covered developments by Archax on various occasions, the company’s platform launch is one of the most anticipated in the industry.
Most recently, Archax has announced that it successfully closed its current round of funding, which will provide it with all the funds necessary to ensure a successful launch in the coming months.