Securitize Funding Round Attracts Coinbase VC, Blockchain Capital, Xpring and More

Published on 27 November 2018 by Cryptovest Staff

Digital Asset issuance and compliance platform Securitize banks $12.75 million in a successful Series A funding round.

Ripple’s venture capital initiative Xpring, Coinbase VC, Global Brain, OK Capital and NXTP were among the big names participating in Securitize’s first funding round yesterday led by Blockchain Capital. The newly raised $12.75 million will be used to directly fund Securitize’s Digital Security Offering (DSO) planned for next year, which hopes to tap into the estimated $7 trillion security token market.

“We’re very excited to have assembled such a highly experienced and credible group of strategic partners...not only will they provide support for Securitize as we continue to execute at the highest level of our industry, but they will also be instrumental as we prepare to tokenize Securitize for our Digital Securities Offering." - Securitize CEO, Carlos Domingo.

The DSO process will be a fully inclusive service provided by Securitize that enables companies to create, issue and manage their own legally compliant tokenized assets. As the security token industry grows in popularity, more businesses are expected to leverage this type of streamlined turnkey solution to digitize their equity, assets and real estate, in order to raise capital much faster and more effectively than the existing VC model.

Coinbase VC’s involvement in this funding round remains consistent with CEO Brian Armstrong’s plans for the San Francisco-based exchange to be a leader in the security token trading space, following a speech he delivered at TechCrunch’s Disrupt event in July. Utilizing Securitize’s coded-compliance, Coinbase will have 100% assurance that all tokens produced from their DSO process are consistent with the necessary global securities laws - something many crypto tokens have infamously lacked thus far.

“We want to be the legal compliant place where you can start to trade these tokens that are classified as securities.” - Coinbase CEO, Brian Armstrong.