Securitize, a platform that helps companies tokenize assets and securities, has announced that it has received an investment from SFV・GB L.P, a corporate venture capital fund managed by Sony Financial Ventures (SFV) and Global Brain.
According to a press release, this is an extension of the Securitize’s latest funding round in which the startup raised more than $14 million from MUFG Innovation Partners, Nomura Holdings, and Santander InnoVentures, and others. SBI Investment had joined the round in November 2019.
While the amount invested by Sony Financial Ventures has not been disclosed, The Block reported that it is a “six-figure” sum.
“We are pleased to add Sony Financial Ventures as a strategic investor in Securitize,” said Carlos Domingo, Co-Founder, and CEO of Securitize. “The investment validates Securitize as one of the most important architects of digital capital markets while adding another marquee name to a growing list of companies who are investing in digital securities as the future of global capital markets.”
Founded in 2017, Securitize is a compliance platform and protocol for issuing and managing digital securities on the blockchain, including dividends, distributions, and share buy-backs. It claims that its DS Protocol, which enables seamless, fully-compliant trading across multiple markets simultaneously, has the highest adoption rate in the industry.
Japan’s growing interest in digital securities and regulatory changes
The company said that the investment from Sony Financial Ventures, a part of Japan-based Sony Financial Group, signifies the country’s growing interest in digital securities. Japan is seeking to amend its crypto-asset regulations, which are expected to come into force in April this year.
Speaking to the publication, Domingo explained that the amendment specifically concerns the Act on Settlement of Funds and the Financial Instruments and Exchange Act (FIEA). Once it comes into force, it will result in enhanced regulations on initial coin offerings (ICOs).
With the amendment, crypto-asset trades or ICOs (except securities token offerings (STOs)) would continue to be governed by the Settlement Act. However, providers of crypto asset derivative trades and the issuers or brokers of STOs will be subject to the FIEA regulations.
“As Japan prepares to approve its new law on digital securities, Securitize continues to position itself as the leading company in this market by adding another top corporate financial partner to its list of world-class investors supporting us in the country,” Domingo told The Block.
Last year, Securitize registered with the U.S. Securities and Exchange Commission (SEC) as a transfer agent. It has also acquired BUIDL, a Japan-based blockchain consultancy firm that helps businesses establish a foothold in the crypto industry.
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