Security token platform Securitize is integrated into the Avalanche blockchain »CryptoNinjas

Securitize, a primary security token issuance and compliance platform and a SEC-registered transfer agent, today announced its integration with Avalanche, the highly scalable open source platform for launching applications and enterprise blockchain deployments in an interoperable ecosystem.

Issuers who use the Securitize platform can now use the Avalanche blockchain to issue and manage private securities (via security tokens), which means considerable time and cost savings for blockchain-based financial service offerings.

The Avalanche blockchain executes transactions with sub-second finality and low transaction fees, which is a dramatic improvement over existing public blockchains. Standard Avalanche transaction fees are a fraction of cents compared to Ethereum’s “gas” cost, which hit over $ 100 per transaction in 2020. The transaction finality of less than a second with Avalanche is also a significant improvement over Ethereums, which are typically between 15 seconds and 5 minutes.

Carlos Domingo, CEO and Co-Founder of Securitize, said: “The integration with Avalanche gives Securitize issuers and their investors seamless access to the latest blockchain technology, while demonstrating our commitment to reinventing private capital markets with proven, trusted technology solutions that propel our industry towards an inevitable turning point of mass adoption. “

“Digital stocks remain an open space for innovation and there is no better home for these assets throughout their lifecycle than on the Avalanche blockchain partnered with Securitize,” said John Wu, president of Ava Labs. “With Avalanche, institutions finally have the full package of speed, low cost and asset structure customizability they need to advance tokenization to a meaningful extent, and we will see the first such issues soon.”

The ability to digitize private securities is significant. In 2019, private capital markets absorbed more than double that of public markets – $ 2.9 trillion versus $ 1.4 trillion (according to the World Federation of Exchanges) with just 2.5% of approved accredited investors . By 2023, the private capital markets are expected to be worth $ 14,000 (according to Prequin). In contrast, the nascent digital securities market has a current market cap of just $ 500 million (according to the Security Token Market), suggesting that digitization of these markets has had a long history.

Securitize was founded in 2017 and is one of the most successful and recognized companies in the security token sector with currently more than 150 customers and 50,000 investors who currently use its issuing and compliance platform for digital securities. Securitize has raised over $ 30 million to date from some of the world’s largest financial institutions, including Santander InnoVenture (renamed 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.

Securitize’s wholly owned subsidiary, Securitize Markets, LLC is a SEC and FINRA registered broker-dealer and alternative trading system (ATS).

Since the mainnet launched on September 21, Avalanche has over 600 full, block-producing validators participating in the network consensus and an additional 2,500 delegators participating in staking. Together they account for over $ 1 billion in AVAX that was used to secure the network.

Avalanche has attracted input from a large pool of open source developers, awarded significant grants for engineers to build infrastructure and applications, and integrated into leading projects such as Chainlink, Polyient and Quantstamp. It has raised $ 60 million to date, including $ 42 million in a 4.5-hour public sale in July and a separate private sale led by Galaxy Digital, Bitmain, and Initialized Capital.