Sony Financial Ventures invests in fintech startup Securitize

Late last year, we wrote about Securitize when the fintech startup creating compliant digital tokens on the blockchain acquired BUIDL to penetrate Japanese market. The startup has been making waves because of its underlying technology and also caught the attention of tech giants and multinationals.

Today, Securitize announced it has secured a strategic fundraise from SFV・GB L.P, a corporate venture capital fund managed by Sony Financial Ventures (SFV) and Global Brain. The investment is an extension of Securitize’s latest funding round which raised more than $14 million from backers including MUFG Innovation Partners, Nomura Holdings, and Santander InnoVentures, as well as early investors like Blockchain Capital. The fresh capital infusion from Sony Financial Group’s venture capital arm marks the latest endorsement of Securitize and its underlying technology.

Founded in 2018 by Carlos Domingo, Jamie H. Finn, Shay Finkelstein, and Tal Elyashiv, Securitize delivers trusted global solutions for creating compliant digital securities. The Securitize compliance platform and protocol provide a proven, full-stack solution for digital securities (security tokens). Securitize’s innovative DS Protocol has the highest adoption rate in the industry and enables seamless, fully-compliant trading across multiple markets simultaneously. Multiple Securitize-powered digital securities are already trading globally on public marketplaces with many more in the pipeline.

Securitize is modernizing capital markets by enabling digital securities, making them easier to own, simpler to manage, and faster to trade. These digital securities can represent various asset classes including equity, fund stakes, fixed income, and real estate. Securitize’s DS Protocol, which manages secondary trading and corporate actions, is a full-stack technology solution with the highest adoption rate in the financial services industry.

“We are pleased to add Sony Financial Ventures as a strategic investor in Securitize,” said Carlos Domingo, Co-Founder, and CEO of Securitize. “The investment validates Securitize as one of the most important architects of digital capital markets while adding another marquee name to a growing list of companies who are investing in digital securities as the future of global capital markets.”

Sony Financial Ventures is part of Sony Financial Group, a financial services group comprising the holding company Sony Financial Holdings Inc. and its subsidiaries including Sony Life Insurance Co., Ltd., Sony Assurance Inc. and Sony Bank Inc. It provides funding for consumer and enterprise-facing businesses in various stages across North America, Europe, and Asia, and is specialized in backing revolutionary technologies such as artificial intelligence & machine learning, robotics, loT and visualization.

“Securitize is expertly leveraging blockchain technology to create a new asset class with astonishing abilities,” said Junji Nakamura, Director, and Member of the Board of SFV. “We at Sony Financial Group are excited to take on this challenge with Securitize and create new value together.”

The investment signifies Japan’s growing interest in digital securities. Last year, MUFG formed a 22-company research consortium to explore the use of blockchain and security tokens for automatic securities settlement. Securitize also received a seven-figure sum investment from SBI Investment, the asset management subsidiary of Tokyo-listed SBI Holdings, in November.

Tokenization’s transformative potential for securities and their function in capital markets is further validated by Securitize’s other backers. The firm has secured additional strategic investment from the likes of Coinbase Ventures, Global Brain, KDDI Open Innovation Fund, Mitusi Fudosan’s 31 Ventures, and Ripple’s Xpring.