Investing in traditional securities can be a daunting process, with high barriers to entry, complex regulatory requirements, and a slow settlement process. But with the rise of blockchain technology, a new form of investment has emerged in the form of digital securities. And San Francisco-based startup Securitize is at the forefront of this revolution, making it easier for eligible investors to own, manage, and trade digital securities within designated capital markets. In this startup showcase, we’ll take a closer look at what makes Securitize unique and how they’re transforming the way we invest.
What is Securitize?
Securitize is a leading platform for digital securities, which are securities that are issued and traded on the blockchain. By using blockchain technology, Securitize is able to streamline the entire process of issuing, managing, and trading securities, making it faster, cheaper, and more transparent. Digital securities are also known as security tokens, and they represent ownership in an asset, such as equity, funds, fixed income, and real estate.
The Securitize Platform
One of the key features of the Securitize platform is its integration with multiple regulated US-based marketplaces. This means that eligible investors can buy and sell digital securities on these marketplaces, with the entire process being managed by Securitize. The platform also offers KYC/AML (Know Your Customer/Anti-Money Laundering) and capital management services, which help to ensure that all transactions are compliant with regulatory requirements.
Securitize is also the only SEC-registered transfer agent that is integrated with multiple regulated US-based marketplaces, with a working protocol and live issuers. This means that they are compliant with the US Securities and Exchange Commission (SEC), which is an important regulatory body in the United States that oversees the securities industry. This is a key advantage for investors who want to be assured that their investments are regulated and secure.
The Benefits of Digital Securities
One of the biggest benefits of digital securities is that they are more accessible to a wider range of investors. Traditional securities are often restricted to accredited investors, who are individuals with a net worth of over $1 million or an annual income of over $200,000. This means that many people are excluded from investing in certain assets, such as high-growth startups or real estate. However, digital securities can be offered to a wider range of investors, including those who may not meet the criteria for accredited investors.
Another benefit of digital securities is that they can be traded more quickly and efficiently than traditional securities. Settlement times for traditional securities can take several days, but with digital securities, transactions can be settled almost instantly. This means that investors can buy and sell securities more quickly, which can be especially advantageous in volatile markets.
Securitize is at the forefront of the digital securities revolution, and their platform is making it easier for investors to access a wider range of assets in a more efficient and secure way. By using blockchain technology and integrating with multiple regulated US-based marketplaces, Securitize is helping to modernize the capital markets and make investing more accessible to all. With their focus on compliance and regulatory requirements, investors can be assured that their investments are secure and in good hands.