Securitize is pursuing a global presence besides its dominance in the United States. It is pursuing expansion across the European Union (EU), with Spain identified as the pioneer location to issue tokenized security.
Securitize replicates the move by US-based digital assets operators to broaden their horizons beyond the domestic market. As such, the firm unveils its Europe campaign to issue tokenized securities in Spain.
Securitize Enters the Spanish General Secretariat
The firm lauded entry into the Spanish General Secretariat under the Treasury and International Finance. The test environment features a sandbox harboring various digital asset securities.
Tokenization involves converting conventional financial assets, including bonds and stocks, into digital products issued on the blockchain. The move targets to lower the cost while improving the markets’ efficiency.
BlackRock chief executive Larry Fink confirmed supporting the security tokenization process as it will become the next generation for market securities. The remarks received backing from Amparo Garcia Flores, the chief executive of Securitize Europe Brokerage and Markets. He considers the EU campaign a critical milestone for its tireless quest to secure European licenses.
Flores considers the Spanish General Secretariat entry as the beginning of Securitize, gaining a comprehensive overview of the two Atlantic regions. Although a subsidiary, Flores considers that it could mirror services offered, including broker-dealer, exempt reporting advisor, and stock transfer agency.
Tokenizing Security of Mancipi Partners
Flores revealed that Securitize has already unveiled the initial batch of securitized tokens representing equity within the Mancipi Partners. The Spanish entity involves a real estate investment trust benefiting from Securitize services.
Securitize targets onboarding investors, share issuance, and offering cap table management. Doing so involves strict compliance with the metrics issued by the Spanish CNMC supervisor.
Flores indicated that it is tokenizing Mancipi Partners by leveraging the Avalanche blockchain. The chief executive projects to launch the secondary trading of the tokenized shares in September 2023.
Securitize considers Spain’s sandbox environment as a fundamental platform to facilitate its execution of real-world trials before securing the necessary licenses. Flores considers entry into Spain as offering the initial trial in the Europe bloc. The chief admitted the determination to seize the opportunities in Europe as it aims to replicate its US success in Europe.
Securitize Targets to Replicate US Achievements in Europe Bloc
Flores indicated that Securitize defies the label that tokenizing securities is merely theoretical. Instead, the executive indicated that it would readily prove that the US achievements are feasible within the Europe bloc.
Flores portrayed Securitize’s mission to open the market on both Atlantic sides. Its achievement would effectively double the business size while optimizing opportunities for the Europe-based issuers who have previously regretted the absence of opportunities matching those accessed by their American counterparts.
Flores explained that services offered by Securitize in the US cover the complete security token cycle. The services begin with token issuance and capital increment dividends issuance. Besides serving the tokens, Securitize handles redemptions, convenes shareholder meetings, and oversees the trading of tokenized securities within the secondary market.
Flores considers the tokenized securities as edging the traditional capital markets by eliminating reliance on multiple intermediaries. Also, tokenizing securities yields continuous traceability. Lastly, the executive indicated that retail investors benefit from direct market access.
Securitize Preparedness to Succeed in Spain
The decision to kick off the Europe Campaign is not coincidental. Instead, the company already maintains a strong presence in Spain. In particular, a significant technology team is Spanish. Also, Banco Santander is one of the early investors in the firm.
Flores reiterated the firm’s preparedness to work in proximity to the regulators. The chief executive admitted that Spain is a big opportunity it would realize when granted the licenses.
Flores considers that though Securitize would have its base in Spain, it aims to expand coverage across the Europe bloc. It intends to use Spain’s approval as a gateway for its European passport.