Santander, Mitsubishi, Nomura invest $14M in security token platform Securitize

Santander, Mitsubishi, Nomura invest $14M in security token platform Securitize

Security-token management platform Securitize today announced a $14 million strategic round raised from investors including Banco Santander, Mitsubishi UFJ Financial Group, and, Nomura Holdings, signaling banks’ heightened interest in the cryptocurrency and digital securities markets.

The San Francisco-based firm provides a compliance platform that helps blockchain companies issue and manage security tokens. Last month, the firm announced that it had become a registered transfer agent with the U.S. Securities and Exchange Commission (SEC). This registration allows Securitize to book-keep cap table records and facilitate corporate actions such paying dividends and conducting shareholder votes.

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,” Securitize CEO and cofounder Carlos Domingo said in a company statement.

Indeed, banks like the Spain-headquartered Santander and Japan-based Nomura are showing increasing interest in the cryptocurrency market. Santander recently used ethereum-based tokens to issue and settle a $20 million bond. The bank tokenized both the bond and cash in this trade. Nomura, on the other hand, has partnered with cryptocurrency custodian Ledger in preparation to launch its institution-grade custody solution.

The Tezos Foundation and Algo Capital VC also participated in this round, in anticipation of digitalizing securities on the Tezos and Algorand blockchains. Last year, Securitize raised a $12.75 million Series A from Coinbase Ventures, Blockchain Capital, and Ripple Ventures. The firm has also formed a partnership with the Japan Security Token Association to educate Japanese investors and advocate for digital tokens.

For more information: https://www.theblockcrypto.com/linked/40901/santander-mitsubishi-nomura-invest-14m-in-security-token-platform-securitize

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What is a Utility Token?

 

Utility tokens are simply app coins or user tokens. They enable future access to the products or services offered by a company. Therefore, utility tokens are not created to be an investment.

 

Just like an electronics dealer might accept orders for a video game that will be released several months later, a startup can create utility tokens and sell digital coupons for the services or products it is developing.

What is a Security Token?

 

A security token is a digital asset that derives its value from an external asset that can be traded. Therefore, these tokens are subject to federal laws that govern securities. Failure to comply with these regulations could result in severe consequences including penalties and potential derailment of the development of a project.

 

Security tokens can offer a vast array of applications if the startup abides by all the regulatory requirements. The most promising of these features is the ability to offer tokens as a digital representation of shares of a company’s stock.