Securitize, which is a digital asset securities firm, has raised $48 million in its Series B funding that has been led by Morgan Stanley and Blockchain Capital.
The other investment firms involved include IDC Ventures, Migration Capital, NTT Data, and others. This is further validation of the work done by the company and is a big thumbs up for the platform that the company has built over the years.
The idea behind the platform is to bring together businesses that are looking to raise capital with individual and enterprise investors who are looking to invest into growing companies, in a single fully digital, regulatory compliant, blockchain platform. The platform would help to issue digital securities and would also help the users and the companies to manage these securities and also trade on them.
Pedro Teixeira, co-head, Morgan Stanley Tactical Value Investing – who joins the Securitize board – says: “We make long-term investments in businesses and asset classes that are ahead of the curve. Our investment in Securitize is a sign that we believe in the growth and adoption of digital asset securities.”
The securities market is a $7 trillion market and growing at a fast pace. It is important that a level of transparency and speed is brought into this space and this is what the Securitize platform seeks to do. It may be remembered that Coinbase had invested in the platform in 2018 looking at the potential that is available in this industry.
Since then, the company has managed to secure more rounds of funding from large investors and major banks as well which is a confirmation and a nod to the fact that the platform has a lot of potential to grow in this space around the world in the coming years. This also shows that the major banks view blockchain as a major driver of growth in the future and we are seeing more and more banks (including central banks) looking to enter into this space and see the possibilities themselves.
It may also be noted that the actions of Securitize are fully regulated. The company had obtained a transfer agent license from the SEC in 2019 which helps the company to perform corporate actions on the securities on behalf of the company. It is this kind of regulatory approvals and action that the blockchain industry needs to keep growing and gaining the confidence of large investors and companies as well.