Securitize Becomes First Security Token Platform to Integrate with Avalanche
Integration gives Securitize issuers access to Avalanche’s security token technology, which offers significant improvements in transaction speed and cost savings.
We’re excited to announce Securitize, the industry-leading primary issuance and compliance platform for digital securities (security tokens) and SEC-registered transfer agent, has integrated with Avalanche to significantly upgrade the time and cost savings for blockchain-based financial services offerings for their customers.
Founded in 2017, Securitize is 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. Securitize’s wholly-owned subsidiary, Securitize Markets, LLC, is an SEC and FINRA registered broker-dealer and alternative trading system (ATS).
Issuers using the Securitize platform can now issue and manage private securities (via security tokens) using Avalanche, benefiting from its ability to achieve sub-second finality with low transaction fees.
Standard Avalanche transaction fees average $0.04, in comparison to Ethereum’s “gas” costs that reached over $100 per transaction in 2020. The sub-second transaction finality on Avalanche is also a significant improvement when compared to Ethereum’s which are typically between 15 seconds and 5 minutes.
“Integrating with Avalanche gives Securitize issuers and their investors seamless access to the latest blockchain technology while demonstrating our commitment to re-inventing private capital markets with proven, trusted technology solutions that are driving our industry towards an inevitable tipping point of mass adoption.”
— Carlos Domingo, Securitize CEO & Co-Founder
The Private Market Opportunity
The opportunity to digitize private securities, and achieve a tipping point of mass adoption as Securitize CEO Carlos Domingo says is significant.
In 2019, private capital markets raised more than double that of public markets — $2.9T versus $1.4T (according to the World Federation of Exchanges) and did so with only 2.5% of eligible accredited investors participating. By 2023 private capital markets are projected to be worth $14T (according to Prequin). In contrast, the nascent digital securities market has a current market cap of only $500M (according to Security Token Market) indicating that the digitization of these markets has a lot of runway.
“Digital securities remain an open frontier for innovation, and there’s no better home for these assets across their entire lifecycle than on the Avalanche blockchain with Securitize as a partner. With Avalanche, institutions finally have the full package of speed, low cost, and customizability in asset structure they require to pursue tokenization at a meaningful scale, and we’ll soon see the first such issuances.”
— John Wu, President of Ava Labs.
We look forward to announcing the first security tokens to launch on Avalanche, and helping institutions realize the long-promised vision of blockchain-enabled securities markets.
Avalanche is an open-source platform for launching decentralized finance applications and enterprise blockchain deployments in one interoperable, highly scalable ecosystem. Developers who build on Avalanche can easily create powerful, reliable, and secure applications and custom blockchain networks with complex rulesets or build on existing private or public subnets.
Securitize Becomes First Security Token Platform to Integrate with Avalanche was originally published in Ava Labs on Medium, where people are continuing the conversation by highlighting and responding to this story.