22.06.2021

Token Tech firm Securitize Raises $14 Million from Santander, MUFG

Securitize announced in a press release Tuesday that the funding – an extension of its Series A round – was backed by Santander InnoVentures, MUFG Innovation Partners and Nomura Holdings. Also participating this time round were existing investors of the Series A, Blockchain Capital, SPiCE VC, and SeedRocket4Founders.

Regulated token issuance technology provider Securitize has raised $14 million from investors including the investment arms of major financial companies.

The firm plans to use the cash injection to carry on developing its technology platform with the grand aim of “modernizing the legacy securities industry.”

The $14 million investment brings Securitize’s total funding to date to over $30 million, according to its own figures.

Carlos Domingo, co-founder and CEO of Securitize, said in the announcement:

“Bringing on key strategic investors like Santander InnoVentures, MUFG, and Nomura, as well as leading blockchain investors, validates how transformative digital securities are for traditional financial markets. Their investment in Securitize ensures that we can continue to drive adoption and innovation with our execution and industry-leading technology.”

The firm was notably approved by the U.S. Securities and Exchange Commission to act as a transfer agent and official keeper of records on changes of securities ownership late last month.

Securitize’s DS Protocol, the firm says, allows the management of secondary trading and corporate actions for digital securities. It further claims to have the “highest adoption rate in the industry”, having issued 11 digital securities already with “dozens” more on the way.

Explaining why Santander is backing the firm, Manuel Silva Martínez, partner and head of investments at Santander InnoVentures said the firm is “betting” on companies that are “reengineering core pieces of our industry’s infrastructure through blockchain technologies.” Securitize will boost the bank’s ability to take part in the digital securities market, he added.

A sizable contingent of Asian investors were also involved in the funding round, including the venture arm of major Japanese telco KDDI, the innovation arm of Japanese real estate developer Mitsui Fudosan, Hong Kong-based blockchain venture firm Kenetic Capital and China-based blockchain investment firm Fenbushi Capital.

Securitize suggested the group highlighted a “growing appetite” for digital securities in the region.

The list of backers further includes the Tezos Foundation and Algo Capital VC, which participated as part of collaborations to put digital securities on the Tezos and Algorand blockchains.

Token Investors May Sue After Former Korean Social Media Giant Shuts Down

Investors in the “clink” token launched by Korean social media firm Cyworld earlier this year are up in arms over the firm’s abrupt closure.

As reported in The Korea Times, Cyworld shut down on Oct. 1 without warning, leaving clink investors uncertain if their holdings continue to have any value. Adding to the mess, two Korean exchanges that actually list the little known token, CoinZest and BitSonic, are considering removing support.

Launched in 1999 and popular in the mid-2000s with some 32 million users, Cyworld’s user base fell during the subsequent rise of Facebook and Twitter.

To try and turn its fortunes around, Cyworld conducted an initial exchange offering (IEO) on CoinZest in January, raising around $400,000. The company had been bleeding employees and funds for some time, having ceased its global service in 2014 to focus solely on South Korea.

Since the site’s closure, Cyworld CEO Jeon Jae-wan and other company executives have not been available for comment. Some clink holders are considering filing a lawsuit against the firm and its CEO, the Times says.

As of press time, each clink token was worth $0.00033266 and had a little over $10 in 24-hour trading volume according to data provider CoinGecko. Clink holders are reportedly expected to lose over 1 billion won ($842,600) if the company doesn’t turn the situation around.

CoinGecko reports the total number of clink in circulation as 10 billion coins.

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