Token Tech firm Securitize Raises $14 Million from Santander, MUFG

The SEC-regulated firm raised $14 million from notable investors across traditional and blockchain finance.

AccessTimeIconSep 24, 2019 at 1:46 p.m. UTC
Updated Sep 13, 2021 at 11:29 a.m. UTC

Regulated token issuance technology provider Securitize has raised $14 million from investors including the investment arms of major financial companies.

Securitize announced in a press release Tuesday that the funding – an extension of its Series A round – was backed by Santander InnoVentures, MUFG Innovation Partners and Nomura Holdings. Also participating this time round were existing investors of the Series A, Blockchain Capital, SPiCE VC, and SeedRocket4Founders.

The firm plans to use the cash injection to carry on developing its technology platform with the grand aim of "modernizing the legacy securities industry."

The $14 million investment brings Securitize's total funding to date to over $30 million, according to its own figures.

Carlos Domingo, co-founder and CEO of Securitize, said in the announcement:

"Bringing on key strategic investors like Santander InnoVentures, MUFG, and Nomura, as well as leading blockchain investors, validates how transformative digital securities are for traditional financial markets. Their investment in Securitize ensures that we can continue to drive adoption and innovation with our execution and industry-leading technology."

The firm was notably approved by the U.S. Securities and Exchange Commission to act as a transfer agent and official keeper of records on changes of securities ownership late last month.

Securitize's DS Protocol, the firm says, allows the management of secondary trading and corporate actions for digital securities. It further claims to have the "highest adoption rate in the industry," having issued 11 digital securities already with "dozens" more on the way.

Explaining why Santander is backing the firm, Manuel Silva Martínez, partner and head of investments at Santander InnoVentures said the firm is "betting" on companies that are "reengineering core pieces of our industry's infrastructure through blockchain technologies." Securitize will boost the bank's ability to take part in the digital securities market, he added.

A sizable contingent of Asian investors were also involved in the funding round, including the venture arm of major Japanese telco KDDI, the innovation arm of Japanese real estate developer Mitsui Fudosan, Hong Kong-based blockchain venture firm Kenetic Capital and China-based blockchain investment firm Fenbushi Capital.

Securitize suggested the group highlighted a "growing appetite" for digital securities in the region.

The list of backers further includes the Tezos Foundation and Algo Capital VC, which participated as part of collaborations to put digital securities on the Tezos and Algorand blockchains.

Carlos Domingo image via CoinDesk archives

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
Three Arrows Paper Trail Leads to Trading Desk Obscured Via Offshore Entities

As Three Arrows Capital collapsed under market pressure, its much-lesser known trading desk, TPS Capital, remained active, sources say. But a complex ownership structure might frustrate creditors' efforts to collect.

CoinDesk - Unknown
2
CoinDesk - Unknown
June Was Bitcoin’s Worst Month Ever

Plus, European crypto regulation comes into view.

CoinDesk - Unknown
3
CoinDesk - Unknown
What Traders Are Saying About Bitcoin's Biggest Monthly Loss in 11 Years

Poor macroeconomic sentiment, fears of inflation and systemic risks from the crypto market pushed the cryptocurrency below 2017’s highs.

CoinDesk - Unknown
4
CoinDesk - Unknown
Three Arrows Capital Files for Bankruptcy in New York Tied to British Virgin Islands Proceeding

A British Virgin Islands court ordered Three Arrows' BVI branch into liquidation earlier this week.

CoinDesk - Unknown