Securitize, a provider of technology for issuing blockchain tokens, has registered as a transfer agent with the U.S. Securities and Exchange Administration (SEC), a move it says will boost adoption.
Announced Wednesday, the registration means Securitize can now act as the official keeper of records about changes of ownership in securities. While that might sound redundant given that blockchains are supposed to track asset transfers, the San Francisco-based startup says it’s expedient.
“We can increase the amount of securities issued on the blockchain and give comfort to people that this is a regulated space,” said Carlos Domingo, co-founder and CEO of Securitize. “The SEC has also started approving other types of exempted securities like Reg A+ and down the road those people will need transfer agents.”
As a further enticement, the company is offering to record transfers for free, which would normally cost around $150 per transfer for regular, SEC-registered securities, Domingo said. Securitize will still charge for the management of securities and corporate actions, such as dividend and interest payments, shareholder votes and redemptions and share buybacks.
While SEC approval after its official submission took only 10 days, Securitize worked for around six months to make sure the regulator understood how the company’s smart contracts would keep a record of transfers, Domingo said. Read More at CoinDesk...