Ripple, Coinbase back project aimed at revolutionizing the U.S. securities industry

Securitize, a startup hoping to use blockchain technology to upend the securities industry, raised a $12.75 Series A investment round led by Blockchain Capital. The venture arms of two giants in crypto — Ripple’s Xpring fund and Coinbase Ventures — also participated in the funding, which the company will use to carry out its vision for “digitizing private and public shares.” 

The company believes traditional equities have flaws that a blockchain-based offering can ameliorate. Instead of offering shareson NYSE or Nasdaq, so-called digital security offerings can offer a different way of allowing companies to sell an ownership stake that can be freely traded.

Securitize isn’t creating a new exchange itself, but rather building the framework to help firms navigate the regulatory environment, provide liquidity on markets that trade 24/7/365, and increase transparency. Coinbase, among others, has expressed an intention to offer digital securities trading in the future and Securitize CEO Carlos Domingo thinks 10-15 exchanges will enter the market next year.

“[The]  blockchain just happens to be a better way to deal with securities,” Domingo told TechCrunch. Domingo believes cap tables — a record of who owns what — will especially benefit from tokenized trading. (Source: TechCrunch) 

The post Ripple, Coinbase back project aimed at revolutionizing the U.S. securities industry appeared first on The Block.


Ripple, Coinbase back project aimed at revolutionizing the U.S. securities industry written by Mark Rogowsky @ https://www.theblockcrypto.com/tiny/ripple-coinbase-back-project-aimed-at-revolutionizing-the-u-s-securities-industry/ November 26, 2018 Mark Rogowsky

Comments are closed.