With the markets current initial coin offerings (ICOs) taking a nasty beating, its well regulated counterpart better known as security token offerings (STOs) is preparing to takes its place in the market with a fresh investment being pumped into this better secured corner of crypto.
A compliance platform for issuing and managing compliant digitized securities on the blockchain, Securitize, recently announced that it has successfully manage to raise over $12.75 million in funding led by Blockchain Capital and joined by other interested investors, these include Coinbase Ventures, Global Brian, NXTP, OK Blockchain Capital, and Xpring, with the investment initiated by Ripple.
The closing for this Series A funding rounds finalized just as Securitize’s plans on launching a Digital Security Offering (DSO), which is another name for STO, during the coming 2019.
“In our view, Securitize’s end-to-end digital securities issuance and compliance platform will play a key role in the development of the security token market,” said CEO of Global Brain Yasuhiko Yurimoto, a Tokyo-based venture capital firm
Securitize has stated that the digital security market to is estimated to be worth over $7 trillion annually, although without having elaborated why it is.
Furthermore, Securitize has boasted of achieving “significant milestones in the development of the digital securities industry”, these include the issuance’s for blockchain VC firm’s 22x, Augmate, SPiCE VC, and the upgrade for Blockchain Capital’s digital security with more customers down the pipeline.
While the significance of Security tokens continue to grow, more people seem to be gravitating towards this type instead of the usual utility tokens. The number of security tokens have continued to grow in recent years and it’s quite interesting to see how this may affect the crypto space in the coming years.
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