Securitization of markets opens up wider access to alternative investments, including secondary market trading
All investments on Securitize Markets are tokenized as Digital Asset Securities (also commonly referred to as “security tokens”), which offer many advantages over traditional paper securities, including near instant settlement minimizing counterparty risk, greater efficiency with fewer middlemen, and the possibility of co-ownership.
At least nine offers are expected to be available for secondary trading at or shortly after the platform’s launch.
The new marketplace complements Securitize’s end-to-end solution, enabling established private companies to raise capital, manage shareholders and provide liquidity potential through secondary trading.
The demand for such a market is clear: private capital markets are growing at more than twice the pace of traditional public markets, with 11 trillion dollars invested in alternative assets at the end of 2020 – a figure that is expected to almost double by 2025. Yet trading activity on private markets is only 1 / 300th that of traditional public markets, in due to a lack of modernization and infrastructure, a highly fragmented market landscape and a myriad of niche secondary market websites with high trading fees.
One of the main reasons private markets are expanding: Growing businesses are staying private longer than ever before. Gone are the days of Microsoft, Amazon and Oracle, whose first IPOs were seen as opportunities for individual investors to share in the wealth generated by unicorns. Today, most of a company’s value is generated long before an IPO, with IPOs increasingly being recognized as exit opportunities for founders and early investors. In fact, by the time individual investors are able to participate, around 80% of IPOs lose value.
“The focus on IPOs is misplaced. Today, wealth is generated by investing in start-up companies, not in mature companies. But most investors have been excluded from these opportunities, so far. Securitize Markets is intended to give many more investors alternative investment opportunities, with the aim of increasing the liquidity of the private markets as a whole, ”said Carlos Domingue, CEO of Parent Company, Securitize, Inc. “Securitize Markets is the latest critical piece in creating the world’s largest, fully digital, end-to-end, regulatory-compliant solution for raising and trading capital. private. I am very proud of our team, who developed this vital platform in just eight months. “
“The management teams of medium and large start-ups spend an enormous amount of time seeking capital from venture capital firms and banks, which reduces their ability to focus on running and growing their business.” , said Scott Harrigan, CEO of Securitize Markets, which is a wholly owned subsidiary of Securitize, Inc. and operates the alternative trading system. “Securitize allows companies to raise funds directly from those who are already most invested in their success: their customers, their fans and their partners. And with Securitize Markets, their investors no longer need to be on a VIP list or wait for a long-standing IPO to trade. , but can do it easily online. “
While private markets have grown dramatically in recent years, the benefits have largely gone to a handful of founders, the wealthy, and institutions, with individual investors excluded.
The goal of Securitize Markets is to enable investors, whether individual or institutional, to participate in the opportunities of the private capital market through a fully digital environment, without offline intermediaries, in the hope that as the market market develops, alternative assets will become more liquid than they have been. in the past.
Securitize Markets was built after Securitize november 2020 acquisition of Distributed Technology Markets, the main development of which was completed by May 2021, and regulatory testing and approvals are completed by August 2021.
Securitize is a digital asset securities market whose mission is to provide investors with access to invest and trade alternative investments, and companies to raise capital and provide liquidity to shareholders. Securitize has pioneered a fully digital, regulatory-compliant end-to-end platform for the issuance, management and trading of digital asset securities, with more than 200 companies and nearly 400,000 investors already connected, and close to $ 500 million in current value digital asset securities issued on the Securitize platform. Securitize is comprised of Securitize, Inc. and its subsidiaries Securitize, LLC (an SEC-registered transfer agent), Securitize Capital, LLC, and Securitize Markets, LLC (an SEC-registered broker, member of FINRA and SIPC, and operator of the company’s alternative trading system, Securitize Markets). Learn more about http://www.securitize.io.
Evan wagner, [email protected]
Armel leslie, [email protected]
Investments in private markets are speculative and considered risky, including the potential loss of your investment, and may not be suitable for all investors. Private investments are generally an illiquid asset class; investors cannot sell their funds when they want to without risking high losses. Any discussion of liquidity is purely speculative.