Why we invested in Securitize
We are excited to announce our recent investment in Securitize, the leading end to end Digital Securities issuance platform on the blockchain.
Blockchain is transforming the world as we know it. Value, governance, identities and ownership are being disrupted. Many have compared it to the Web, back in the 90’s, but we think a better analogy is the internet during the 70’s with its initial set of protocols (TCP/IP family). These are still early days but we see massive opportunities ahead of us.
Digital Securities will enable fractional ownership, liquidity, erase geographical restrictions, increase traceability and reduce transaction costs. Asset classes such as venture capital, real estate, art, and stocks and bonds will be disrupted. Think owning a few strokes of a Jackson Pollock painting. Or a couple of square meters of the Empire State. Independently on your location.
Securitize’s platform enables these innovations through their own protocol (DS protocol). It provides the whole lifecycle management of compliant Digital Securities: issuance, trading, exchange integrations and the support of multiple business models. You can learn more about them here => Securitize.
There are still many challenges in the space. Above all regulation and compliant exchanges. Recent SEC announcements regarding Digital Securities are encouraging, however. We think that it won’t take long until the regulatory framework is in place and we are excited that Securitize has taken the lead in trading Digital Securities through Open Finance and Airswap, the first live exchanges. Coinbase, Tzero and many others are working hand in hand with Securitize to rethink the way we purchase, own and trade assets. All of this is happening during a bear market but we think that might be a good thing. Not having all eyes on the industry allows companies to focus on building and when the bulls return, Securitize will be ready to capture a lot of the value it is currently creating. Our view at NXTP is that Digital Securities will be the second phase of crypto assets and that Securitize’s disruptive approach will be a game changer in the developing of the industry.