Securitize announced its Series B fundraising round was oversubscribed, with $48 million raised from new and existing investors. The convergence of venture capital and asset management signals a consensus on the future adoption of digital asset securities and this technology continuing to grow.
The raise also comes before the anticipated launch of Securitize Markets, a marketplace designed for the trading of digital asset securities, providing a path to liquidity for the private capital markets. It was co-led by Securitize’s largest investor, Blockchain Capital and investment funds managed by Morgan Stanley Tactical Value.
They were joined by new investors including Ava Labs, IDC Ventures, Migration Capital, NTT Data and Sumitomo Mitsui Trust Bank. The round also included strong interest from existing investors wishing to increase their investments in Securitize, with Blockchain Ventures, Borderless Capital, Global Brain, Mouro Capital, Ripio, Ripple and SPiCE VC ultimately joining.
With this raise, Securitize is also the first blockchain company to receive major institutional funding from North America, Europe and the Asia-Pacific region. Participants in this Series B investment round — as well as previous and existing Securitize investors — will receive their shares in the form of digital asset securities issued by Securitize’s platform. Also, the fundraise builds upon blockchain company’s recent launch of an asset management subsidiary, Securitize Capital, and its two inaugural cryptocurrency yield funds.
“Securitize developed incredible partners during our Series A round last year, both in venture capital and at major European and Japanese financial institutions. That they have been joined in our Series B by a major US investment bank and the largest trust bank in Japan, as well as additional top VCs, demonstrates that confidence in the adoption of digital asset securities is increasingly mainstream,” said Securitize CEO and co-founder Carlos Domingo, in a statement.
“Our first investment in the blockchain industry is the leading digital asset securities firm, Securitize. Securitize is well-recognized for pioneering the securitization of digital asset securities on the blockchain, and for its fully-compliant and fully-digital end-to-end to solution that enables private companies to raise capital, and for investors to find a path to liquidity,” said Pedro Teixeira, co-Head of Morgan Stanley Tactical Value Investing, in a statement. “We make long-term investments in businesses and asset classes that are ahead of the curve. Our investment in Securitize is a sign that we believe in the growth and adoption of digital asset securities.”
“On top of the security token issuance we announced in March, our investment in Securitize further strengthens our partnership with one of the most commercially-used and technologically-advanced digital asset security solutions,” said Kazuteru Wakao, executive officer and general manager of the Wholesale Business Planning Department for Japan’s Sumitomo Mitsui Trust Bank, in a statement. “A stronger relationship with Securitize positions SMTB well to lead the digitization of financial services in Japan and beyond, as well as to bring cutting-edge, highly value-added products and services to our customers.”