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

Investments • November 26, 2018, 3:52PM EST
Published 1 hour earlier on
The Block

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.

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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) 

About Author

John Biggs is an entrepreneur, consultant, writer, and maker. He spent fifteen years as an editor for Gizmodo, CrunchGear, and TechCrunch and has a deep background in hardware startups, 3D printing, and blockchain. His work has appeared in Men’s Health, Wired, and the New York Times. He runs the Technotopia podcast about a better future. He has written five books including the best book on blogging, Bloggers Boot Camp, and a book about the most expensive timepiece ever made, Marie Antoinette’s Watch. He lives in Brooklyn, New York. Disclosure: Biggs owns and maintains cryptocurrencies in a private account and has been consulting with startups regarding blockchain-based products. He also edits and writes for startup clients.

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