Securitize, the trusted global solution for issuing and managing compliant digital securities on the blockchain, is now an SEC-registered transfer agent.
This registration enables Securitize to act as a transfer agent for digital securities registered with the SEC, as well as for issuers of Reg A+ and Reg CF digital securities who wish to exempt their digital securities from the mandatory registration requirements of Section 12(g) of the Securities Exchange Act of 1934.
Securitize is the first and only SEC-registered transfer agent with a working blockchain protocol, active issuers, and integrations that allow digital securities powered by Securitize’s DS protocol to be traded on SEC-registered alternative trading systems (ATS), including Open Finance Network, tZERO, and Sharespost.
As a transfer agent, Securitize is able to keep a real-time cap table of investors and facilitate corporate actions for issuers, including, among other things, the payment of dividends and interest, conducting shareholder votes and redemptions/share buybacks.
Securitize has also created a tool, the transfer verification tool (TVT), that allows investors to pre-check the transfer of any digital security token powered by the DS protocol.
This positions Securitize as a one-stop digital securities service provider, drastically decreasing the number of intermediaries required to compliantly manage the lifecycle for both registered and unregistered digital securities on the blockchain.
Using blockchain technology and tokens representing ownership allows for an immutable, auditable, and traceable source of record of the lifecycle of a security and automates compliance, which allows for instant trades across multiple regulated marketplaces, materially reducing the time it takes to determine a trade for a security and ensuring the compliance of the trade.
“Securitize has consistently led the market through our execution and commitment to delivering on the promise of compliant digital securities on the blockchain. Becoming a registered transfer agent is the natural next step for Securitize as we continue to work toward making all securities digital; it opens up opportunities for issuers of registered securities to tap into the digital securities market in an efficient and trusted way, and also allows issuers of Reg A+ and Reg CF digital securities to use a blockchain-based transfer agent if they wish to exempt their digital securities from the mandatory registration requirements of Section 12(g) of the Exchange Act,” said Carlos Domingo, Co-Founder and CEO of Securitize.
The news comes after Securitize announced the 10th issued and outstanding digital security running on the Securitize platform and DS Protocol, five of which are actively trading on regulated ATS, with a total value of all issued and outstanding digital securities using its technology approaching $200M.