Securitize, a platform for issuing digital securities supported by the major cryptocurrency exchange Coinbase, has announced a new tool to ensure that transactions in the secondary digital securities market are compliant.
According to a blog post on April 22nd Securitize Instant Access simplifies the creation of regulatory peer transactions for investors in private securities. To ensure that transactions meet the required requirements, Securitize uses smart contracts in the Ethereum blockchain.
To initiate a transaction, investors privately create an interest notice for the sale of their digital securities via a web link that can be published and shared on various channels.. The blog post later in detail:
“Once an issuer decides to enable the instant access feature, any prospective buyer who has KYC / AML approval and is registered with the issuer can purchase the holder’s digital value if the holder has released the transaction link with them. Only transactions that meet these KYC / AML requirements and that meet the transfer restrictions imposed by the issuer via the DS protocol are permitted. “
Securitize currently offers instant private equity deals associated with five companies, including venture capital funds.The startup’s co-founder and CEO, Carlos Domingo, told Bloomberg.
Ensure constant further development
In March, Securitize and Tokyo-based LIFULL announced plans to jointly create a financing platform on which to invest in real estate with digital securities. The new platform aims to revitalize homes in Japan that are no longer used or have been completely abandoned.
Last August, the U.S. Securities and Exchange Commission registered Securitize as a transfer agent. By registering, the company can act as an official record holder for property changes.