Securitize Receives Regulatory Approval for BD/ATS Acquisition

SAN FRANCISCO, Nov. 24, 2020 /PRNewswire/ -- Securitize, the industry-leading primary issuance and compliance platform for digital securities (security tokens) and an SEC-registered transfer agent, announced today that it has received regulatory approval to acquire Distributed Technology Markets, LLC, ("DTM") a FINRA registered broker-dealer with an alternative trading system (ATS) on file with the SEC. The entity, which will be renamed Securitize Markets, LLC "Securitize Markets", enables Securitize to offer a complete digital suite of services from primary issuance through secondary trading.

Carlos Domingo, Securitize CEO and co-founder stated, "Private markets represent a massive segment of the modern global economy but are way behind when it comes to using technology to make issuing and trading more efficient, transparent, and accessible. By integrating Securitize Markets into our existing digital transfer agent platform and services, we can now offer a seamless digital solution for issuers and investors that dramatically improves the experience compared to the poorly digitized processes that are being used today."

Securitize has over 150 customers, all of which are managed using Securitize's transfer agent platform and services, and DS (Digital Securities) Protocol technology.

Securitize also announced that Jonathan Kelfer, former Co-Founder and CEO of Velocity Markets – one of the divisions of the newly acquired DTM – has been named as the firm's new CTO.

Securitize Markets Leadership

Chris Wittenborn and Patrice O'Mara have been named as the leadership team for Securitize Markets. Wittenborn will serve as CEO and O'Mara as CCO. They previously held the same roles at DTM.

Chris Wittenborn, CEO of Securitize Markets stated, "Securitize Markets is continuing the initiative of working hand in hand with regulatory bodies to construct a compliant capital markets framework for private securities - including digital asset securities. We're excited to join forces with Securitize in an effort to continue developing this market."

Founded in 2017, Securitize is one of the most successful and recognized companies in the tokenization space, with currently over 150 customers and more than 50,000 investors currently using its issuance and compliance platform for digital securities.

Securitize has raised over $30M to date from some of the world's largest financial institutions, including Santander InnoVenture (rebranded as 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.

ABOUT SECURITIZE

Securitize is modernizing capital markets by enabling digital securities, making it easier for eligible investors to own, manage, and trade digital securities within designated capital markets for equity, funds, fixed income, and real estate. Securitize is the only SEC-registered transfer agent integrated with multiple regulated US-based marketplaces with a working protocol and live issuers. The company also offers KYC/AML and capital management services.

*Securitize Markets, LLC is a member FINRA/SIPC

Additional Information

The soon to be launched Securitize Markets, will give accredited and institutional investors access to private capital markets through digital securities listings, which are simply private securities that have been "digitized" or converted to a digital version of the security that can be issued, tracked, and controlled using blockchain technology. Digital securities improve accessibility, operational efficiencies, and compliance when compared to traditionally managed private securities. 

The opportunity for Securitize Markets is significant. In 2019, private capital markets raised more than double that of public markets -- $2.9T versus $1.4T (according to the World Federation of Exchanges) and did so with only 2.5% of eligible accredited investors participating. By 2023 private capital markets are projected to be worth $14T (according to Prequin). In contrast, the nascent digital securities market has a current market cap of only $500M (according to Security Token Market) indicating that the digitization of private markets has only just begun. 

Media Contact:
Armel Leslie
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[email protected]

SOURCE Securitize