Security token platform Securitize integrates with Avalanche block chain
Securitize, a primary issuance and compliance platform for security mints and SEC-registered transfer agent, today announced its integration with Avalanche, the highly scalable, open source platform for launching applications and enterprise blockchain deployments in a single, interoperable ecosystem.
With significant time and cost savings for offering blockchain-based financial services, issuers using the Securitize platform can now issue and manage private securities (via security tokens) using the Avalanche blockchain.
The Avalanche block chain carries out transactions with a subsecond finality and low transaction costs, which is a dramatic improvement over existing public blockages. The standard Avalanche transaction costs are a fraction of cents, compared to Ethereum’s “gas” costs of more than $100 per transaction in 2020. The finality of the Avalanche transaction in subseconds is also a significant improvement compared to Ethereum, which usually lies between 15 seconds and 5 minutes.
Carlos Domingo, Securitize CEO & Co-Founder said: “Integration with Avalanche gives Securitize issuers and their investors seamless access to the latest block technology and demonstrates our commitment to reinventing private capital markets with proven, reliable technology solutions that drive our industry to an inevitable tipping point of mass adoption”.
“Digital securities remain an open frontier for innovation, and there is no better home for these assets throughout their lifecycle than on the Avalanche block chain with Securitize as a partner,” said John Wu, President of Ava Labs. “With Avalanche, institutions finally have the full package of speed, low cost, and adaptability in the asset structure they need to pursue tokenization on a meaningful scale, and we will soon see the first such issuances.
The opportunity to digitise private securities is considerable. By 2019, private capital markets more than doubled their public markets – $2.9T versus $1.4T (according to the World Federation of Exchanges), and only 2.5% of eligible accredited investors did so. By 2023, private capital markets are expected to be worth $14T (according to Prequin). In contrast, the burgeoning digital securities market has a current market limit of only $500M (according to Security Token Market), indicating that the digitisation of these markets has a lot of runway.
Founded in 2017, Securitize is one of the most successful and recognized security token companies, with currently more than 150 customers and 50,000 investors using the issuance and compliance platform for digital securities. Securitize has so far raised more than $30 million from some of the world’s largest financial institutions, including Santander InnoVenture (renamed Mouro Capital), MUFG, Nomura Holdings, SBI and Sony Financial Ventures (SFV). In addition, Securitize has received funding from well-known blockchain investors such as Algo Capital (renamed Borderless Capital), BlockchainCapital, Blockchain Ventures, Fenbushi, Kinetic, SPiCE VC, and the Tezos Foundation.
Securitize’s wholly owned subsidiary, Securitize Markets, LLC, is an SEC and FINRA registered broker-dealer and alternative trading system (ATS).
Since the launch of the mainnet on 21 September, Avalanche has more than 600 full, block-producing validators participating in the network consensus, and a further 2,500 delegates participating in the stakes. Together, they account for more than $1B of AVAX deployment to secure the network.
The Avalanche has c
contributions from a large pool of open source developers, significant grants for engineers to build infrastructure and applications, and integrated with leading projects such as Chainlink, Polyient and Quantstamp. It has raised $60M to date, including $42M in a 4.5am public sale this July, and a separate private sale led by Galaxy Digital, Bitmain, and Initialized Capital.
Published on Thu, 10 Dec 2020 05:07:35 +0000