Security Token Platform Securitize Partners With Liquidity DigitalSeptember 27, 2019
Security token platform Securitize has teamed with Liquidity Digital (LD) to provide capital allocators an edge in linking private investment opportunities via digital securities.
Founded in 2017, Securitize is a full stack technology and services platform with features and specialized tools for both investors and issuers. It delivers global solutions for creating compliant digital securities. The company claims that its Digital Securities (DS) Protocol has the highest adoption rate in the industry and enables seamless, fully compliant trading across multiple markets simultaneously.
Liquidity Digital is developing an ecosystem for the creation, distribution, and monetization of digital assets. Its deal distribution marketplace allows our issuers to surface Digital Security Offerings in a secure global network of accredited investors and broker-dealers, as well as facilitating deals conducted using other digital assets or fiat currency. LD’s blockchain-powered platform allows the company to offer its clients a precisely calibrated mix of transparency and security, while always meeting regulatory requirements for compliance.
Together, the parties are taking on what they say are the outdated forms of capital formation that are not meeting the increasingly diverse needs of investors. They plan to use their distinct expertise and experience to help institutional-grade issuers create digital securities and connect them with global investors. The digital securitization process will then be recorded on the blockchain and flow through LD’s technology platform at every stage of the life-cycle, pre- and post-issuance.
According to the firms, their partnership will provide a variety of advantages to clients, including expanded expert market insights, deal sourcing and lower fees; smart contracts with full transparency for issuers, investors and broker-dealers, as well as regulators; and greater potential for secondary market liquidity.
“Liquidity Digital’s platform empowers brokers of institutional capital and complements Securitize’s capabilities in issuing digital securities,” said Syed Hussain, CEO, Liquidity Digital. “We use blockchain-based solutions to trace and verify the transaction history and integrity of deal-flow data so there is a permissioned sharing of information and a secure environment for introducing brokers and placement agents who may otherwise have been competitive.”
“Historically high fees, long lockups, limited accessibility and a lack of transparency have been prohibitive,” added Jitin Jain, CTO of Liquidity Digital. “We are offering an innovative digital solution to that by maximizing our companies’ distinctive strengths. While we see digital securities as the future of the industry, Liquidity Digital believes in building bridges to tomorrow that will lead to seamless industry adoption of this innovative and game-changing technology.”
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