The venture capital arm of Coinbase has helped raise $12.75 million in a Series A funding round for Securitize, a platform that facilitates the issuance and management of compliant digitised securities on the blockchain.
Earlier this year, the Chief Executive Officer (CEO) of Coinbase, Brian Armstrong told the audience at TechCrunch’s Disrupt event in San Francisco that the company is planning to build a de facto marketplace for buying and trading crypto securities.
The investment into the startup Securitize by the company’s VC arm seems like a natural step, as its planned business model will help create demand for security products like what Coinbase has planned.
Securitize funding round led by Blockchain Capital
The funding round, which was made up primarily of fiat currency and a small percentage of tokens, was led by Blockchain Capital and was joined by some well-known cryptocurrency and blockchain firms Xpring at Ripple, Global Brain, NXTP and OK Blockchain Capital.
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The funding round will help Securitize prepare for its planned launch of a Digital Security Offering (DSO) next year. According to the statement, the company believes that decentralised ledgers have the ability to bring instant transactions and transparency to the securities market.
Furthermore, Securitize also believes it is the most market-ready compliance platform for primary issuance and lifecycle management of digital securities. This is because it has worked on projects such as 22x, SPiCE VC, and Augmate.
Commenting on the funding round, Carlos Domingo, the CEO of Securitize, said: “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.”
Speaking to TechCrunch, Domingo added that the company has been working with lawyers across the United States to facilitate its offering in multiple states.