Securitize, a company that converts assets to tokens and manages digital securities on the blockchain, has been registered as a transfer agent with the United States Securities and Exchange Commission. While this will give them the freedom to maintain records for the transfer of securities, the company also claims that being SEC-compliant will help boost the platform’s adoption.
News out. We are now an SEC registered transfer agent to operate with securities on the blockchain. https://t.co/pO8KXQwSPp
— Carlos Domingo (@carlosdomingo) August 21, 2019
While transfers of SEC-registered securities generally incur a fee of around $150, Securitize offers to record them at no cost, providing further incentive to customers to use the platform, claims Carlos Domingo, CEO of Securitize.
Security tokens, unlike utility tokens, are clearly identified as securities. This makes them subject to guidelines and regulations mandated by bodies like the SEC. Securitize is the first transfer agent that uses blockchain to be registered with the SEC, allowing digital securities to be traded on SEC-registered alternative trading systems.
“One of the most important and unique aspects of our technology is the Digital Securities Protocol (DS Protocol). The DS Protocol allows for the compliant trading of tokens on secondary marketplaces, like Alternative Trading Systems (ATS) in the U.S., and many other global securities exchanges and marketplaces.”
Unlike traditional stock exchanges, ATSs do not stop operating at any time during the year. This wider operating window also allows for more liquidity.
Entities involved in the purchase and provision of security tokens can breathe a sigh of relief as Securitize’s Digital Securities (DS) protocol makes sure that the tokens themselves are compliant, while securities are provided on public digital ledgers. This allows for a reliable recording of a security’s history, while automatically ensuring compliance & enabling instantaneous and compliant trades in regulated markets.
You guys are so compliant it hurts….wen moon?
— JP Stanley (@BitCashCoin1) August 21, 2019
The firm aims to bring real-time transactions and transparency to the securities market through the use of blockchain.