Liquidity is coming for security tokens

Carlos Domingo • May 1, 2018

Digital Securities | Blockchain | Securitize

When I started working on SPiCE VC back in May 2017 and we decided to issue a security token, we had this slide in our VC fund presentation introducing the problem of lack of liquidity:

And the next slide was about how we though blockchain technologies will solve the problem and provide liquidity and we quote Stephen McKeon who had been very articulated about how liquidity was going to change the concept of ownership in ways we could not even imagine:

After feeling very lonely for months talking about security tokens and the promise of liquidity, the first part of the problem or why security tokens where important started to be solved as regulators stepped in an proclaim that most token sales were in fact securities. But I though that it was a very narrow view, it is not about to turn utility tokens into security tokens but the fact that security tokens have a broad applicability to digitize securities beyond just decentralized protocols and provide a number of advantages like inclusivity, automation and liquidity. Yes, liquidity again. For months, this was a promise. Subsequently I started Securitize to enable people to issue security tokens on the blockchain with the promise to disrupt private placement markets and provide liquidity. But liquidity continued being an elusive word and not a reality.

Today, we have announced that the first US regulated security token exchange to come to market, Open Finance, will list all the tokens enabled by Securitize to provide secondary market trading and liquidity starting with SPiCE VCtoken.

So the promise is now a reality, all the discussions that a lot of people have had about how digitized securities were going to disrupt the $1.6 trillion private placement market in the US (and much larger worldwide) and provide an alternative to IPOs (that are 16 time smaller) is now becoming a reality thanks to Securitize and its primary issuance platform and Open Finance and its secondary trading platform.

So let’s tokenized the world!!

Carlos Domingo

Co-founder and CEO Securitize and co-founder and managing partner of SPiCE VC.