San Francisco-based startup Securitize has launched an alternative system for trading tokenized shares of private companies as part of the opening of a subsidiary of Securitize Markets.
Securitize has been issuing share tokens since 2017 through its transfer agent registered with the US Securities and Exchange Commission (SEC). According to Forbes, the company can now trade stock tokens through an Alternative Trading System (ATS) operated by its broker-dealer.
“We want to facilitate early liquidity for companies without having to go through the costly and lengthy SEC registration process,” said Securitize CEO Carlos Domingo. “We also want to enable individual investors to invest in these companies and make a profit.”
ATS is launching with four issuers, mostly venture capital firms in the blockchain and digital asset market, but Securitize plans to attract companies outside the cryptocurrency industry in the future. In the coming weeks, the firm is expecting four more issuers to join the platform, including Exodus, which raised $ 60 million earlier this year through an SEC-regulated stock token sale.
According to Scott Harrigan, CEO of Securitize Markets, it took the company three months to transfer the license and another eight months to obtain final regulatory approval to launch the site.
“Due to the stringent regulatory requirements for alternative trading systems, it has taken some time for regulators to review and fully validate our ATS application to secure digital assets,” Harrigan said.
Recall that last fall, Securitize announced plans to buy out the DTM broker in order to become an alternative system for the secondary trading of digital assets.
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