By
Temitope Olatunji
April 18th, 2024
Coinbase-backed security token startup Securitize has launched a referral network of sorts to help companies issue and manage digital securities through their newly announced “Securitize Ready Program”.
Securitize first entered the cryptocurrency market as a result of support from Coinbase. However, it has come a long way since then.
The security token startup has announced the launch of a new network for referrals that will enable companies to manage and issue digital securities, according to the announcement on April 9th.
Newly announced ‘Securitize Ready Program,’ should accelerate the adoption of Securitize platform and DS Protocol for digitizing securities on the blockchain. With the use of Securitize’s DS protocol, the company aims to provide an automated compliance platform for security tokens and ensure the whole process, from onboarding to issuance and investor management, is done within regulatory guidelines.
The network is offering the services of the different partners that have joined them, which includes Rialto Trading, OpenFinance, and Coinbase Custody. It also has opportunities for services from CBlock Capital, a private investment group. This is not a complete list of all partners and Securitize has expressed interest in adding other partners in the future.
Clients for each of the included partners will have support as they create and manage their own security tokens with the support of broker-dealers, lawyers, and advisory firms. The available resources will also ensure that regulatory guidelines are met with these securities, according to Securitize.
Steven Lucido, head of the program, said:
“Securitize Ready frees partners to focus on their core business while providing their clients access to the industry’s most widely adopted issuance and lifecycle management technology. It represents a win-win for both partners and the issuers they work with.”
Compliance for the platform and the digital securities protocol is completely maintained through secondary trading. The platform also makes it possible to take advantage of “automated” features, including share buy-backs, voting, and dividends. So far, Securitize has been able to help 22x, SPiCE VC, Blockchain Capital, and Augmate with their sales of digital securities.
Late last year, Securitize closed a Series A funding round led by Blockchain Capital that raised $12.75 million. The round also included participation from Coinbase Ventures, Global Brain, NXTP, OK Blockchain Capital, and Xpring at Ripple.
In January 2019, Securitize joined the IBM Blockchain Accelerator program. According to a report, Securitize CEO Carlos Domingo said that the firm’s goal is to build a debt issuance platform using blockchain technology.
To help with the sale and tokenization of securities for firms, Securitize formed a partnership this year with OTCXN, a blockchain infrastructure company. The collaboration combined the securities compliance platform of Securitize with the custodial ledger system of OTCXN.
In the framework of this collaboration, these two startups said to be creating services that will enable institutional traders to deal with tokenized crypto assets and avoid settlement risks associated with traditional systems.