Morgan Stanley dives into blockchain space with investment in Securitize

By: Daniela Kirova
Daniela Kirova
Daniela was born in Bulgaria, grew up in Chicago, and then moved to Michigan to attend the University of… read more.
on Jun 22, 2021
  • Securitize is a digital asset securities firm that raised $48 million.
  • Wall Street giant Morgan Stanley took part in the funding.
  • The company's verified investor community numbers 300,000

Securitize, Inc. raised $48M from new and current investors, rendering its Series B fundraising round oversubscribed. The Series B fundraising was co-led by asset management and venture capital leaders such as Blockchain Capital, the biggest investor in Securitize, and a number of Morgan Stanley investment funds, the company stated on June 21 in a press release.

The capital raise comes before the launch of the company’s Securitize Markets, a marketplace that emphasizes ample liquidity for the trading of digital assets.

Fusion of asset management and venture capital

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The newfound union of asset management and venture capital is indicative of an agreement on adoption of digital asset securities in the near future. It’s a sure sign that blockchain technology will continue to grow and develop. The fundraising gives Securitize the honor of being the first blockchain company to acquire huge institutional funding from Europe, North America, and the Asia-Pacific region.

Series B investors will get shares as Securitize platform issued digital asset securities, as will former and current investors in the company. Before the raise, the blockchain company boasted a 300,000-strong community of verified investors who have lent support to hundreds of companies in a span of only four years.

Board Changes

Securitize added Pedro Teixeira, Co-Head of Morgan Stanley Tactical Value, to its Board of Directors in keeping with the tradition of the successful capital raise. Teixeira said:

“Our first investment in the blockchain industry is the leading digital asset securities firm, Securitize. Securitize is well-recognized for pioneering the securitization of digital asset securities on the blockchain, and for its fully-compliant and fully-digital end-to-end to solution that enables private companies to raise capital, and for investors to find a path to liquidity.”

Recent milestones

Securitize Capital, the company’s asset management subsidiary, was the previous major milestone for them. Another one was their initial inaugural cryptocurrency yield funds.

The Series B raise came after the company enabled Exodus to raise $75M in Reg A+ compliant Series A funding, a record amount. Securitize CEO and co-founder Carlos Domingo commented the series of successes as follows: 

“Securitize developed incredible partners during our Series A round last year, both in venture capital and at major European and Japanese financial institutions. That they have been joined in our Series B by a major U.S. investment bank and the largest trust bank in Japan, as well as additional top VCs, demonstrates that confidence in the adoption of digital asset securities is increasingly mainstream.”

Securitize brings together entities who want to invest in private capital and businesses seeking to raise it. It has pioneered a completely digital, end to end, legally compliant platform for issuing, managing, and facilitating trade of digital asset securities.

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