Securitize can now officially facilitate corporate actions for issuers, such as the payment of dividends and interest, conducting shareholder votes and redemptions/share buybacks obtaining transfer agent license. Digital securities powered by Securitize’s DS protocol can be traded on SEC-registered alternative trading systems (ATS), including Open Finance Network, tZERO, and Sharespost.
Securitize, a leading solution for issuing and managing compliant digital securities on the blockchain, has successfully registered with the U.S. Securities and Exchange Commission (SEC) as a transfer agent.
The firm can now act as a transfer agent for digital securities registered with the SEC, as well as for issuers of Reg A+ and Reg CF digital securities who wish to exempt their digital securities from the mandatory registration requirements of Section 12(g) of the Securities Exchange Act of 1934.
Securitize has recently announced the 10th issued and outstanding digital security running on the Securitize platform and DS Protocol. Five of which are actively trading on regulated ATS, with a total value of all issued and outstanding digital securities using its technology approaching $200M.
Carlos Domingo, Co-Founder and CEO of Securitize, commented:
“Securitize has consistently led the market through our execution and commitment to delivering on the promise of compliant digital securities on the blockchain. Becoming a registered transfer agent is the natural next step for Securitize as we continue to work toward making all securities digital; it opens up opportunities for issuers of registered securities to tap into the digital securities market in an efficient and trusted way, and also allows issuers of Reg A+ and Reg CF digital securities to use a blockchain-based transfer agent if they wish to exempt their digital securities from the mandatory registration requirements of Section 12(g) of the Exchange Act.”
The firm, which has recently partnered with UK-based digital asset exchange Archax, has created a transfer verification tool (TVT) that allows investors to pre-check the transfer of any digital security token powered by the DS protocol.
Securitize’s blockchain technology and infrastructure is able to decrease the number of intermediaries required to compliantly manage the lifecycle for both registered and unregistered digital securities on the blockchain.
Distributed ledger technology can provide an immutable, auditable, and traceable source of record of the lifecycle of a security and has the power to automate compliance, which allows for instant trades across multiple regulated marketplaces, materially reducing the time it takes to determine a trade for a security and ensuring the compliance of the trade.