Coinbase-backed Startup Moves to Unveil Security Token Issuance and Trading Service

Coinbase-backed Startup Moves to Unveil Security Token Issuance and Trading Service


Two crypto startups, Securitize and OTCXN, have entered into partnership to create a Digital Security Offering (DSO) service. The new project will aim to “simplify the extensive and highly regulated process of buying and selling securities by tokenizing their ownership on the Ethereum blockchain,” Forbes reports.

Securitize is a compliance platform and protocol for issuing and managing of digital securities on the blockchain platform. The startup has been backed by Coinbase, one of the biggest crypto exchanges in the world, as they participated in the $12.75 million Series A funding round of Securitize in November 2018.

OTCXN, on the other hand, is blockchain-powered custodial ledger system. The startup caught worldwide attention after creating the “first technology platform that eliminates counterparty and settlement risk without the use of balance sheet and credit”.

“OTCXN’s comprehensive, multi-custodian, secondary market trading infrastructure pipeline is a tremendous opportunity to scale the digital securities market. And, because OTCXN is in production today, with other tokenized crypto assets, implementing the Securitize DS Protocol and onboarding of our customer’s digital assets will be a seamless process,” said Carlos Domingo, the CEO and Co-Founder of Securitize, in a statement.

The plan is to integrate OTCXN platform into the Securitize’s compliance platform in order to facilitate the process of issuing digital securities and connecting customers to their investors.

“We believe the DSO market presents an immense long-term opportunity in the blockchain and digital asset space, and we are poised to be the core infrastructure provider. Our platform for secondary market trading already contains the technology pipeline required to realize the promise of this extremely important capital markets innovation,” stated Rosario M. Ingargiola, the CEO and Founder of OTCXN.

Last month, Newconomy reported about Securitize joining the IBM Blockchain Accelerator program, which focuses on advanced-growth companies looking to further explore the blockchain network while receiving technical and business support from the IBM staff.

Securities industry is estimated at around $7 billion. As Securitize’s DS protocol is considered to have the highest adoption rate in the industry, it will be interesting to monitor the initial results of the new partnership with OTCXN.