Coinbase-backed Securitize receives strategic investment from SBI Holdings

SBI Holdings, a Japanese financial services company, is in the news after it announced a substantial investment in digital securities platform, Securitize. According to a press release shared with AMBcrypto, the strategic fundraising round was conducted in order to facilitate further development on the platform, while also injecting a level of sophistication to the legacy securities industry. While the sum of the funding has not been disclosed, multiple reports have suggested that it was a seven-figure investment.

Securitize, which is also backed by Coinbase exchange, promotes compliant trading of private securities on public blockchains with multiple exchanges. The organization’s DS protocol has the highest adoption rate in the industry, and manages secondary trading.

In the past, Securitize had also gained interest from the lines of Blockchain Capital and Ripple’s Xpring, as well as Japanese firms such as MUFG Innovation.

The involvement of the Tokyo-listed SBI Holdings is significant as the organization is the largest conglomerate of Internet financial services in Japan. SBI Holdings’ relationship with Ripple is very evident in the industry, with SBI recently revealing that it will be using XRP to power remittances from Japan to Southeast Asia. SBI’s remittance platform, called SBI Remit, will be using Ripple’s XRP-powered xRapid, which is now known as On-Demand Liquidity (ODL).

After the announcement, Carlos Domingo, Co-Founder and CEO of Securitize, stated,

“We are excited to welcome SBI Securities as a key strategic investor. Japan’s economic strength, digital society, and advanced regulatory environment make it an attractive market for tokenization – and SBI is playing a leading role in this movement as a founding member of the Japan Security Token Offering Association (JSTOA).”

As previously reported, Securitize had received an estimated $14 million over its initial funding rounds back in September, in the presence of major participants such as Santander InnoVentures and MUFG Innovations.