MUFG Innovation Partners, the wholly-owned corporate venture capital subsidiary of Japanese bank MUFG, and Nomura Holdings have backed the US$14-million strategic fundraise in Securitize, a US-based digital securities firm.
The fundraise is an extension of Securitize’s Series A round, bringing its total funding raised to date to $30 million. The latest funding round was also backed by Santander Innoventures, the venture capital arm of Banco Santander.
The latest fundraise shows the growing appetite in Asia for digital securities. Also participating in the funding round are Mitsui Fudosan, Kenetic Capital, and Fenbushi Capital.
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Securitize operates a compliance platform for creating and managing compliant digital securities. The platform offers a full-stack solution for managing and issuing digital securities in the form of security tokens.
Its DS Protocol also has the industry’s highest rate of adoption, with seamless and compliant trading across multiple markets.
The extended Series A funding is aimed at further developing the company’s technology platform to modernise the legacy securities industry, Securitize said.
Securitize co-founder and chief executive officer Carlos Domingo said the coming in of Asian investors MUFG and Nomura as well as a number of blockchain investors further validates how transformative digital securities are for traditional financial markets.
Its existing investors include Blockchain Capital, SPiCE VC, and SeedRocket4Founders. These firms also participated in the latest funding round.
“The backing of these well-established global financial institutions validates the power of Securitize’s technology to transform the way securities move and function in capital markets,” the firm said.
Nobutake Suzuki, president and CEO of MUFG Innovation Partners, said digital securities are increasingly becoming a leading use case for distributed ledger technologies within the financial services industry.
“Securitize has emerged as a leading solutions provider within this rapidly growing space,” Suzuki added.
Securize raised US$12.74 million in its Series A round in November 2018. The said round attracted industry-leading blockhain technology investors, including Global Brains, Coinbase Ventures, Ripple Ventures, and Blockchain Capital.