Securitize, one of the most successful and recognized companies in the security token space, with currently more than 150 customers and 50,000 investors currently using its issuance and compliance platform for digital securities has integrated with Avalanche, a highly-scalable Layer 1 blockchain platform. This collaboration aims to revolutionize blockchain-based financial services by significantly reducing time and costs for issuers. By leveraging Avalanche’s capabilities, Securitize’s platform now allows issuers to manage and issue private securities through security tokens at a fraction of the traditional cost and time.
Through lower costs, Securitize makes this market more accessible to investors thanks to lower investment threshold, in addition to facilitating onboarding and compliance. Tokenization also allows to increase liquidity of the underlying assets. Securitize’s integration with Avalanche marks a milestone in its journey to digitize private market securities and could be a catalyst for broader adoption of blockchain technology in financial markets.
WHY TOKENIZATION AND WHY USING BLOCKCHAIN?
Private capital markets are worth $11.7T in 2023 according to McKinsey, while digital securities market only has a market cap of $500M. Clearly, there is a lot of room of digitizing of these markets, and that is where blockchain comes in place. Blockchain technology allows for easy tokenization of assets, with very high transaction speed and extremely low transaction cost.
WHAT HAS SECURITIZE TOKENIZED?
A year ago, Securitize announced it was set to tokenize an interest in $491 billion asset management firm KKR’s Health Care Strategic Growth Fund II (HCSG II). Hamilton Lane, a private market investor with over $832 billion in assets under management will also announced that it will tokenize parts of its funds. This is viewed as a significant breakthrough for individual access to private equity markets.
Securitize has recently started its expansion in Europe and begun issuing tokenized securities in Europe. Securitize has partnered with the Spanish General Secretariat of the Treasury and International Finance (CNMV) to tokenize equity in Mancipi S.A., a Spanish real estate investment trust (REIT) investing in commercial real estate in the Spanish health sector. The project aims to $150 million euros.
For further details on other news, check Securitize’s annoucement page.